MANILA (Reuters) – The Asian Development Bank approved on Thursday a $1 billion loan to help one of Philippines’ largest cities procure a fleet of more than 1,000 electric and Euro-5 standard diesel buses, in an important step towards modernising the country’s ageing public transport system.
The loan will also fund the construction of about 1,000 bus stops, five bus depots and three bus terminals in the southern Davao city, including driver training for the new system, the ADB said in a statement.
It will be the Philippines’ first project deploying electric buses on a scale that could support its efforts to cut greenhouse gas emissions.
“Not only will this support the Philippines’ climate goals, but it will help to improve the lives of vulnerable populations especially women and the young who use public transport daily,” said ADB Senior Transport Specialist for Southeast Asia Shuji Kimura.
The Philippines aims to cut greenhouse gas emissions to 75% by 2030 under its commitment to the Paris Agreement on Climate Change, up from a 70% target previously set.
Last year, the ADB committed $6.7 billion to Asia for climate mitigation and adaptation in line with its ambition to provide $100 billion in cumulative climate financing by 2030.
(This story has been corrected after ADB issued clarification to say that loan will fund combination of electric and Euro-5 diesel buses in paragraph 1)
(Reporting by Karen Lema; Editing by Martin Petty and Jonathan Oatis)
