The Asian Development Bank (ADB) has approved a $500-million (around P29.56 billion) policy-based loan to support the development of the Philippines’ blue economy.
The financing for the Marine Ecosystems for Blue Economy Development Program Subprogram 1 was approved on Thursday, the multilateral lender said in a statement.
This loan seeks to “strengthen the productivity and diversity of the country’s ocean-based economy, and improve the health and adaptability of coastal areas and communities,” the ADB said.
It also aims to improve the plastic and solid waste management value chain to ensure long-term ecological and economic resilience in the Philippines.
“More than half of the Philippine population is dependent on the country’s oceans and rich marine biodiversity for food and livelihoods, with the blue economy having great potential to be central to attaining inclusive, resilient, and low-carbon development,” ADB Philippines Country Director Andrew Jeffries said.
“This is ADB’s first extensive cross-sector program focused on fostering national blue economy development in the region. We are committed to assisting our host country in achieving its climate resilience and low-carbon objectives,” he added.
In addition, Agence Française de Développement and Germany’s KfW Development Bank are set to provide cofinancing of up to €200 million (about P13.82 billion) each for Subprogram 1.
Last year, key blue economy sectors generated P1.01 trillion ($17.17 billion) to the country’s economy, accounting for 3.8% of gross domestic product.
The blue economy includes fisheries, manufacturing of ocean-based products, tourism-related services, shipping, and offshore energy.
However, marine ecosystems in the Philippines are being affected by plastic and solid waste pollution, as well as extreme weather.
The Philippines, the world’s second-largest archipelagic nation, is battered by around 20 typhoons each year, with cyclones growing stronger in recent years.
The ADB was the second-biggest development partner of the Philippines in 2024, with $11.05-billion worth of 59 loans and grants. — Aubrey Rose A. Inosante