ADB approves $800 million for Philippines and Maldives amid Middle East conflict
The Asian Development Bank (ADB) is deploying a total of $800 million in fast-tracked support to safeguard access to healthcare services in the Philippines and maintain stable electricity and water supplies in the Maldives, as the impact of the conflict in the Middle East intensifies. The announcement was made on August 11, 2026, in Manila, according to a press release issued by ADB. The financing package addresses rising costs and supply disruptions affecting essential public services in both countries. It reflects ADB’s response to how a distant crisis reaches households through higher medicine prices and uncertainty over power supply. The support underscores ADB’s role in shielding vulnerable populations from external shocks.
The package consists of a $750 million loan for the third subprogram of the Build Universal Health Care Program in the Philippines and a $50 million emergency assistance loan for the Energy Security Emergency Assistance Project in the Maldives. In the Philippines, ADB increased the loan for the third subprogram by $250 million, bringing the total to $750 million, in response to expanded government funding needs caused by higher crude oil prices and supply shocks. This additional support is part of the up to $1.75 billion in extra assistance that ADB President Masato Kanda offered to Philippine President Ferdinand Marcos in May. The Japan International Cooperation Agency (JICA) has also expanded its co-financing for the program from an initial $130 million to approximately $188 million.
“Conflicts do not need to cross borders to affect people’s lives. Their impact reaches households through rising medicine prices and questions about whether the lights will stay on,” said ADB President Masato Kanda.
He added that ADB is helping ensure Filipinos can access needed healthcare and that Maldivians can secure stable power and water even as costs rise from a crisis in a distant region. His remarks framed the twin operations as a coordinated response to shared external pressures. The statement highlighted the human dimension of the financing decisions. It also reaffirmed ADB’s commitment to timely crisis support.
The Philippine program aims to ensure equitable access to quality healthcare for all Filipinos, including addressing women’s health needs and the health impacts of extreme weather. Out-of-pocket health expenditure as a share of household spending declined from 48.8% in 2019 to 42.7% in 2024, and the third subprogram continues to support universal enrollment in PhilHealth, the country’s public health insurer. It expands PhilHealth benefits to include primary care, emergency services, and additional medicines. It also increases no-copayment beds in public and private facilities and deploys mobile medical units, emergency medical teams, and community health teams under the “PuroKalusugan” program in underserved areas. These measures target both structural gaps and immediate service needs.
In the Maldives, higher fuel prices tied to the Middle East conflict, combined with declining tourist arrivals, have made it harder for the government to finance fuel imports. Imported fuel accounts for 94% of the country’s electricity supply and also powers desalination plants that provide drinking water, leaving few alternatives if supply is disrupted. ADB’s loan will finance diesel imports essential for maintaining power and water supply, transporting food and medical goods, moving people and cargo between islands, and continuing waste management. The support complements a $40 million package from the World Bank aimed at similar objectives. Together, the operations reinforce ADB’s mandate to promote resilient growth across Asia and the Pacific.