Philippines Gets $400m ADB Loan for COVID-19 Vaccine Purchase

ADB Philippines
Photo by Steven Cornfield on Unsplash

MANILA – The Philippines today became the first recipient of financing support under the Asian Development Bank’s (ADB) Asia Pacific Vaccine Access Facility (APVAX) with approval of a $400 million loan that will help the country purchase safe and effective vaccines against the coronavirus disease (COVID-19).

“ADB’s support will boost the Philippine government’s urgent efforts to secure and deploy COVID-19 vaccines for all Filipinos, especially those who are vulnerable, such as frontline workers, the elderly, and poor and marginalized populations, as well as those at increased risk of severe illness,” said ADB President Masatsugu Asakawa. “COVID-19 vaccines are critical to accelerating the recovery of the Philippine economy, rebuilding livelihoods, and restoring quality jobs. With this financing, ADB seeks to help the country save lives and allow Filipinos to return to normal life as soon as possible.”

The Second Health System Enhancement to Address and Limit COVID-19 under the APVAX (HEAL 2) project will assist the Philippine Department of Health in procuring and ensuring delivery to the country of vaccines certified by the COVID-19 Vaccines Global Access Facility (COVAX) and bilateral vaccine suppliers that meet APVAX eligibility criteria.

The project will be supported by $300 million in cofinancing from the Asian Infrastructure Investment Bank (AIIB). The ADB and AIIB loans will together fund the procurement of up to 110 million doses of COVID-19 vaccines for as many as 50 million Filipinos.

HEAL 2 builds on and complements ADB’s  Health System Enhancement to Address and Limit COVID-19 (HEAL) project, which was approved in August 2020. In January 2021, ADB approved the reallocation of $25 million under the HEAL loan to fund the government’s advance payments to vaccine suppliers to secure the delivery of vaccines this year. The Philippines has one of the highest numbers of COVID-19 infections in Southeast Asia, with more than 600,000 confirmed cases as of 11 March.

APVAX is ADB’s $9 billion vaccine initiative offering rapid and equitable support to its developing members as they procure and deliver effective and safe COVID-19 vaccines. Vaccines eligible for financing under the HEAL 2 loan must meet at least one of three APVAX criteria: they have been selected for procurement through COVAX, prequalified by the World Health Organization, or their manufacture is authorized by a Stringent Regulatory Authority (SRA) in the country of production.

Any vaccine supply contract supported by ADB will follow ADB’s procurement rules and guidelines, including its anticorruption and integrity policy. Under the HEAL 2 loan agreement, ADB will pay vaccine suppliers directly. The financing will also follow global best practices on safeguards measures, including waste management of medical supplies. –