Finance Secretary Carlos Dominguez III has lauded outgoing President Takehiko Nakao for his leadership at the helm of the Asian Development Bank (ADB) that has enabled the institution to carry out bold reforms, attune its programs to today’s technologically driven era, and more effectively deliver development assistance to its member-countries in the region.

The Philippines, in particular, has been a key beneficiary of President Nakao’s innovations at the ADB, which, during his term of nearly seven years, raised its funding commitment to the country over the 2016-2022 period to around US$15 billion—almost thrice the amount provided by this multilateral lender to the previous administration, Secretary Dominguez said.

Secretary Dominguez, who sits as governor of ADB for the Philippines, said this significant increase in its financial commitment demonstrated the Bank’s full confidence in the Duterte administration’s capability to implement a comprehensive development strategy for rapid and inclusive growth.

It was also on President Nakao’s term when the ADB made its single largest infrastructure investment commitment to the Philippines and to any other country with the US$2.75 billion multi-tranche loan facility for the Malolos-Clark Railway, which is among the major strategic projects under President Duterte’s centerpiece program “Build, Build, Build.”

“On behalf of the Philippine Government, I express extreme gratitude to President Nakao for the nearly seven fruitful years he has served as head of the ADB. I am grateful to know that you consider our country as the ADB’s home. You have been a great asset for Asia’s development and an effective leader of this institution,” said Secretary Dominguez at the farewell ceremony for President Nakao on Thursday.

“More importantly, you have proven to be a true friend and partner to the Duterte administration in bringing about President Duterte’s ultimate goal of liberating Filipinos from poverty,” he added.

President Duterte earlier conferred the Order of Sikatuna with the rank of Grand Cross or Datu, Gold Distinction, to President Nakao. The award is the Philippines’ highest civilian recognition given to individuals who have rendered exceptional and meritorious services to the Philippines in developing and strengthening relations with the country.

Mr. Nakao’s successor, Mr. Masatsugu Asakawa, was elected as the 10th president of the ADB by the institution’s board of governors last Dec. 2. Mr. Asakawa will assume office as ADB president on January 17.

Secretary Dominguez said that on his watch, President Nakao had “reinvented” the ADB by pursuing reforms that dramatically increased its lending commitments, opened new financing modalities and expanded its operations, as well as set the course for it to respond effectively to the region’s changing needs through the launching of “Strategy 2030.”

President Nakao, who Secretary Dominguez described as a “good friend and tireless partner in development work,” also introduced “forward-looking institutional reforms that aim to make ADB’s operations stronger, faster and better.”

These include, he said, the “One ADB” approach that fostered closer collaboration among the Bank’s departments, headquarters, and field offices along with sovereign and private sector operations; the modernization of the Bank’s information technology systems; and the establishment of a thematic group that focuses on the adoption of digital technology programs in, and sharing of technical knowledge with, its member-countries.

He also pointed out that President Nakao had welcomed and supported his proposal for the ADB, World Bank, Asian Infrastructure Investment Bank (AIIB) and the other multilateral institutions to closely coordinate their development efforts in the Asia-Pacific, and even strongly committed to carry out this goal.

“When I broached this suggestion to President Nakao, he did not just welcome the proposal but reaffirmed his strong commitment for coordination with the World Bank and the AIIB to ensure a more efficient delivery of development assistance to client countries,” he said. “At present, the World Bank and the ADB are holding dialogues to ensure non-duplication and complementarity of activities.”

Secretary Dominguez assured President Nakao that, on the part of the Philippines, its assistance from the ADB will be used “to finance programs geared to close the country’s infrastructure gap, enhance the local business climate, promote countryside development, and achieve lasting peace and development in Mindanao.”

He said the Philippines is grateful for the technical assistance that ADB provided for the Duterte administration’s Comprehensive Tax Reform Program (CTRP) since December 2016, which has largely supported the efforts of the Department of Finance (DOF) to make the country’s tax system simpler, fairer and more efficient.

Secretary Dominguez noted that the CTRP, particularly its first package–the Tax Reform for Acceleration and Inclusion Act (TRAIN)–has provided the government with a sustainable revenue stream to invest more in infrastructure and human capital development.

“Alongside other economic reforms, (tax reform) contributes to an increasingly inclusive and credit-worthy economy, affirmed by credit rating agencies as well as domestic and global bond markets,” Secretary Dominguez said.

The ADB has also been providing the Philippines with numerous forms of assistance in the areas of human capital development, local governance sector reform, disaster risk management, and urban and regional connectivity, among others, Secretary Dominguez said.

“All the projects initiated with President Nakao’s strong support will have a great impact on the Philippines’ development for many years to come,” Secretary Dominguez said. “These projects will link communities, provide better logistical backbone for the economy, and draw investments for building our people’s future.”

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