Finance Secretary Benjamin Diokno and Asian Development Bank (ADB) Country Director for the Philippines Pavit Ramachandran signed three loan agreements for the Davao Public Transport Modernization Project (DPTMP) on Saturday 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, i.e. the Green Climate Fund (GCF) and the ASEAN Infrastructure Fund (AIF).

The GCF component of the loan package, equivalent to US$50 million, will help finance the procurement of electric buses under the DPTMP. This will contribute to the country’s first nationally determined contribution (NDC) under the Paris Agreement on Climate Change, which sets a 75 percent greenhouse gas emission reduction and avoidance target by 2030.

According to Diokno, the modernization of the transportation system will help enhance the ease of doing business in the country in the medium term and unlock the region’s growth in the longer term.

“In the long term, a modern, efficient, and reliable transport system will improve the quality of life of our people and improve the connectivity of communities,” the Finance Secretary added.

The event was witnessed by President Ferdinand Marcos, Jr., ADB President Masatsugu Asakawa, Vice President Sara Z. Duterte, Senator Imee Marcos, Special Assistant to the President Antonio Ernesto Lagdameo, Jr., Transportation Secretary Jaime Bautista, Budget and Management (DBM) Secretary Amenah Pangandaman, and Davao City Mayor Sebastian Duterte. DOF Communications Office