Sustainable Development of Island Logistics in the Philippines Receives MCDF Grant Support

A USD1,575,000 grant to prepare a project to sustainably develop transport connectivity and logistics across multiple islands in the Philippines and beyond was approved by the Multilateral Cooperation Center for Development Finance (MCDF) Governing Committee during its meeting in Beijing on 31 March. The project will be implemented by the Asian Infrastructure Investment Bank (AIIB).

The MCDF grant will fund a comprehensive feasibility study for developing logistic warehouses, port infrastructure, and access roads, collectively referred to as “logistic hubs,” in seven strategic locations across the Philippines. The locations include Clark in Pampanga Province; Quezon Province; Cebu City; General Santos City; Mati in Davao Oriental Province; El Nido in Palawan Province; and Ubay in Bohol Province.

The logistics hubs will be designed to facilitate the efficient movement of people and goods at lower cost while addressing challenges arising from the country’s archipelagic geography, such as seismic activity, biodiversity impacts, indigenous communities, and social acceptance.

This enhanced connectivity will in turn promote greater domestic and international market access and trade opportunities for artisanal producers and established businesses across agriculture, fisheries, tourism, and other sectors.

The MCDF grant-funded feasibility study will cover project scoping, concept design, an economic and financial assessment, an environmental, social, and climate assessment, an institutional assessment, and tender document preparation.

These activities will help to validate the logistics project’s demand and socioeconomic benefits, confirm the project scope, fiscal exposure, and financial viability, assess the merits of alternative governance and management models, identify potential implementation challenges, and develop a concept design that will later inform a detailed design.

The outcomes of the MCDF grant-financed feasibility study will ensure the project is bankable and can satisfy the standards required for financing by AIIB and partners needed to make the delivery of targeted logistic hubs and access roads in the Philippines a reality.