2-7-2023 (MANILA) The Asian Development Bank (ADB) has given its nod to a significant loan of US$1 billion to aid one of the largest cities in the Philippines in procuring a fleet of over 1,000 electric and Euro-5 standard diesel buses, marking a crucial step towards modernizing the country’s aging public transport system.
In addition to the bus fleet, the loan will also finance the construction of approximately 1,000 bus stops, five bus depots, and three bus terminals in the southern city of Davao. The funding will also cover driver training for the new system, as stated in the ADB’s official announcement.
This project holds great significance for the Philippines as it represents the country’s first venture into deploying electric buses on a scale that can effectively contribute to reducing greenhouse gas emissions.
ADB Senior Transport Specialist for Southeast Asia, Shuji Kimura, expressed, “Not only will this initiative support the Philippines’ climate goals, but it will also enhance the lives of vulnerable populations, particularly women and young individuals who rely on public transportation on a daily basis.”
The Philippines has set ambitious targets to reduce greenhouse gas emissions, aiming for a 75% reduction by 2030 in accordance with its commitment to the Paris Agreement on Climate Change. This target represents an increase from the previously established goal of 70%.
Last year, the ADB dedicated $6.7 billion to Asia for climate mitigation and adaptation projects, aligning with its overarching objective to provide a cumulative climate financing of $100 billion by 2030.
