The Philippines scrapped its plans to borrow $70 million from the Asian Development Bank and has instead sought funding from the China Export-Import Bank. According to Macra Cruz, the deputy administrator at Manila’s state water agency, MWSS, the Chinese institution offers lower rates and approves loan applications faster. “China seems able to move faster. The two governments are scheduled to sign a loan agreement next week,” said MWSS project manager Jose Dimatulac said. The ADB has expressed concern over the latest development. “There’s a lot of money out there now. Multilateral development banks are not the only source of long-term, reasonably cheap funding for infrastructure,” one ADB official remarked. Because of the pullout, the bank froze the remaining funding under a proposed $400 million package for related projects in Manila. “The facility needed the anchor component, which was the aqueduct rehabilitation, for the other components to go ahead,” an ADB official revealed.
Source: Chinese bank takes over Manila project/The Financial Times