MANILA : The Asian Development Bank (ADB) said Friday (Aug 27) it has approved a US$400mil policy-based loan to the Philippines to help improve local governments' capacity to provide high-quality public services, especially during the Covid-19 pandemic.

The Manila-based bank said the Local Governance Reform Program Subprogram 2 will help strengthen local government units' service delivery framework, modernize local public financial management, and improve financing and investment framework.

ADB Public Finance Economist for South-East Asia Aekapol Chongvilaivan said the programme "will help ensure local governments have the capacity and adequate resources to quickly respond to the basic needs of local communities at critical times like this."

The new programme builds on ADB's support since 2006 to help the Philippines boost efficiency, accountability, and transparency in local governments' financial management and service delivery.

  - Xinhua