Manila Times
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Saturday, May 31, 2025
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Philippines Secures $7.85 Billion from World Bank for Development Initiatives
The financing will support a framework aimed at enhancing the Philippines' transition to upper-middle-income status.
The Philippines is set to borrow a total of $7.85 billion from the World Bank over the next two years, as part of a new six-year lending program intended to assist the country's progression to upper-middle-income country (UMIC) status.
The Country Partnership Framework (CPF) for fiscal years 2026 to 2031 outlines significant financial commitments from the International Bank for Reconstruction and Development (IBRD) to various development projects.
In fiscal year 2026, commencing in July 2025, the IBRD plans to approve financing of approximately $3.95 billion.
Notable projects included in this allocation are: the $700 million Philippines Community Resilience Project (PAGKILOS); the $600 million Project for Learning Upgrade Support and Decentralization (PLUS-D); and the $800 million Philippines Second Energy Transition and Climate Resilience development policy loan (DPL).
Additionally, funding for social initiatives includes a $500 million social protection project named BENFIRST 2 and a $300 million Skills Employment Project.
For fiscal year 2027, a projected $3.9 billion will support initiatives such as the $300 million Philippines Health System Resilience Project Phase 2; the $400 million Philippines Government Modernization (ROTUNDA) Project; and initiatives aimed at waste and plastic pollution management with $300 million allocated for the Philippines Waste and Plastic Pollution Reduction and Management Project.
The lending pipeline further includes an $800 million Growth DPL Series 2 and several projects designed to enhance finance access for micro, small, and medium enterprises (MSMEs).
The IBRD serves as the lending arm of the World Bank Group (WBG), tailored specifically for developing countries, including the Philippines.
The WBG has indicated plans to extend between $22 billion and $23 billion in loans and financing to the Philippines between mid-2025 and mid-2031, which encompasses approximately $18 billion from the IBRD.
As of the fiscal year 2025, set to conclude next month, the World Bank has four Philippine loan proposals scheduled for approval, including a landmark $1 billion loan for the Department of Agriculture’s Sustainable Agriculture Transformation Program, the $240.6 million Accelerated Water and Sanitation Project, and the $4 million Roads to Development project for the Bangsamoro Autonomous Region in Muslim Mindanao.
Key loans for FY 2026 include the PAGKILOS project on July 28, 2025, and the PLUS-D on September 26. In light of the recent board approval of the CPF on May 22, 2025, the WBG expressed a commitment to improving human capital outcomes by enhancing education and health systems.
The board emphasized the need to address issues such as child stunting and learning poverty, which have been critical challenges in the Philippines.
The World Bank reported in 2021 that the country was confronting a 'silent pandemic' of childhood stunting linked to undernutrition.
Additionally, a significant portion of the student population was identified as experiencing learning poverty, with nine out of ten 10-year-olds unable to read or comprehend simple texts.
The board commended efforts in job creation, resilience building, and infrastructure improvements within the CPF, highlighting the importance of collaboration with the Asian Development Bank (ADB) and other development partners.
The Country Partnership Framework (CPF) for fiscal years 2026 to 2031 outlines significant financial commitments from the International Bank for Reconstruction and Development (IBRD) to various development projects.
In fiscal year 2026, commencing in July 2025, the IBRD plans to approve financing of approximately $3.95 billion.
Notable projects included in this allocation are: the $700 million Philippines Community Resilience Project (PAGKILOS); the $600 million Project for Learning Upgrade Support and Decentralization (PLUS-D); and the $800 million Philippines Second Energy Transition and Climate Resilience development policy loan (DPL).
Additionally, funding for social initiatives includes a $500 million social protection project named BENFIRST 2 and a $300 million Skills Employment Project.
For fiscal year 2027, a projected $3.9 billion will support initiatives such as the $300 million Philippines Health System Resilience Project Phase 2; the $400 million Philippines Government Modernization (ROTUNDA) Project; and initiatives aimed at waste and plastic pollution management with $300 million allocated for the Philippines Waste and Plastic Pollution Reduction and Management Project.
The lending pipeline further includes an $800 million Growth DPL Series 2 and several projects designed to enhance finance access for micro, small, and medium enterprises (MSMEs).
The IBRD serves as the lending arm of the World Bank Group (WBG), tailored specifically for developing countries, including the Philippines.
The WBG has indicated plans to extend between $22 billion and $23 billion in loans and financing to the Philippines between mid-2025 and mid-2031, which encompasses approximately $18 billion from the IBRD.
As of the fiscal year 2025, set to conclude next month, the World Bank has four Philippine loan proposals scheduled for approval, including a landmark $1 billion loan for the Department of Agriculture’s Sustainable Agriculture Transformation Program, the $240.6 million Accelerated Water and Sanitation Project, and the $4 million Roads to Development project for the Bangsamoro Autonomous Region in Muslim Mindanao.
Key loans for FY 2026 include the PAGKILOS project on July 28, 2025, and the PLUS-D on September 26. In light of the recent board approval of the CPF on May 22, 2025, the WBG expressed a commitment to improving human capital outcomes by enhancing education and health systems.
The board emphasized the need to address issues such as child stunting and learning poverty, which have been critical challenges in the Philippines.
The World Bank reported in 2021 that the country was confronting a 'silent pandemic' of childhood stunting linked to undernutrition.
Additionally, a significant portion of the student population was identified as experiencing learning poverty, with nine out of ten 10-year-olds unable to read or comprehend simple texts.
The board commended efforts in job creation, resilience building, and infrastructure improvements within the CPF, highlighting the importance of collaboration with the Asian Development Bank (ADB) and other development partners.
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