The Asian Development Bank (ADB) approved a loan to the Government of the Philippines, through the Development Bank of the Philippines (DBP), for the Credit for Better Health Care Project (CBHCP) (Loan 2125-PHI)7 to help the country achieve the Millennium Development Goals (MDGs), specifically Goal 4 to reduce child mortality and Goal 5 to improve maternal health. The loan intends to address low and inefficient public expenditures in health care by mobilizing additional off-budget credit for pro-poor investment through a government financial intermediary (DBP), leveraging private participation and increasing allocations toward investment priorities. These priorities include maternal and child health services, control of communicable diseases, services to improve access to basic health care, and referral services including laboratory and other diagnostic services.
The CBHCP supports DBP's Sustainable Health Care Investment Project (SHCIP),2 a credit facility established in 2007 to support the health sector reform agenda and implementation framework, FOURmula One for Health of the Department of Health (DOH). The project's expected impact is improved overall health status, especially in relation to MDGs, by (i) reduced under-5 child mortality rate and reduced infant mortality rate (MDG 4), and (ii) reduced maternal mortality rate (MDG 5). Its outcome is increased use of basic health care and referral services by the poor, in general, and by women and children, in particular. It has four outputs: (i) upgraded LGU health services, (ii) more efficient health delivery systems through public-private partnership (PPP), (iii) improved access to small-scale private providers, and (iv) enhanced institutional capacity for health sector lending. To manage the project, DBP has set up a project management office in its Program Development Department, headed by a project director and staffed by a project manager, an assistant project manager, and two project associates.
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7 ADB. 2009. Report and Recommendation of the President to the Board of Directors: Proposed Loan and Administration of Grant Credit for Better Health Care Project. Manila.
8 SHCIP is available to local government units (LGUs) and the private sector through (i) direct retail lending for LGUs and larger private sector sub-borrowers and (ii) wholesale direct lending to accredited financial intermediaries (microfinance intermediaries, rural and thrift banks) for small private sub-borrowers. SHCIP is financed from DBP's own resources and supplementary funds of development partners and supports both capital investments and working capital.