Finance Secretary Benjamin Diokno and Asian Development Bank country director for the Philippines Pavit Ramachandran signed three loan agreements for the Davao Public Transport Modernization Project on July 1, 2023 at the Acacia Hotel in Davao City.
The project aims to deliver a modern, high priority public transport system that will provide an attractive, efficient, and affordable mode of transport in Davao City.
It will also maximize service coverage to cater to the growth in travel demand and accelerate inclusive economic growth in the city.
“The administration of President Ferdinand Marcos, Jr. recognizes that modernizing our transportation systems will be critical in building a sustainable and globally-competitive economy,” Diokno said in his message of commitment.
The DPTMP will be supported by loans amounting to $1.074 billion from the ADB and ADB-administered funds, such as the Green Climate Fund and the ASEAN Infrastructure Fund.
The GCF component of the loan package, equivalent to $50 million, will help finance the procurement of electric buses under the DPTMP.
This will contribute to the country’s first nationally determined contribution under the Paris Agreement on Climate Change, which sets a 75-percent greenhouse gas emission reduction and avoidance target by 2030.