World Bank prepares USD 2.75-B lending program for Philippines in 2026

The World Bank  is committed to extending around USD 2.75 billion in loans to the Philippines for fiscal year 2026.

In an e-mail interview, World Bank Country Director for the Philippines, Malaysia, and Brunei Zafer Mustafaoğlu said the amount is 3.7% lower than the USD 2.857-billion lending program for the country for fiscal year 2025, which started in July 2024 and ends in June.

Mr. Mustafaoğlu last December said that the World Bank is finalizing the new country partnership framework for the Philippines, which will cover 2025-2028.

World Bank data showed the USD 4-million Roads to Development project is scheduled to be approved on Feb. 28. The project aims to improve rural road access in six formally acknowledged Moro Islamic Liberation Front camp communities.

Also up for approval on March 5 are the USD 454.94-million Mindanao Transport Connectivity Improvement Project (MTCIP) and the USD 495.6-million Health System Resilience Project.

The MTCIP focuses on local road improvements, climate resiliency, and road safety in the Cagayan de Oro, Davao, and General Santos corridor.

The health system project aims to strengthen provincial health systems, as well as improve the prevention, preparedness and response to health emergencies, including climate-driven adverse events.

The USD 67.34-million Civil Service Modernization Project, which is set to be approved on March 10, seeks to improve human resource management in National Government agencies.

The USD 800-million First Energy Transition and Climate Resilience development policy loan is also up for approval on March 31. It involves ramping up the adoption of clean energy technologies; boosting the security and competition of electricity markets; and improving water management.

The Department of Agriculture’s USD 1-billion Sustainable Agriculture Transformation Program is also up for approval on June 5. It aims to promote climate-resilient agri-food systems for increased productivity, enhanced diversification, and efficient use of public resources in the Philippines.

The USD 240.6-million Accelerated Water and Sanitation Project in selected areas is scheduled for approval on June 27. It aims to boost access to safe water and sanitation services, as well as strengthen the efficiency of local government-run water service providers.

The Department of Education’s USD 600-million Project for Learning Upgrade Support and Decentralization seeks to “improve the foundational literacy and numeracy of kindergarten and primary education learners, as well as the learning outcomes in reading and mathematics of lower secondary education learners in public schools nationwide.” It is up for approval on July 16.

The USD 700-million Community Resilience Project, scheduled for July 28, aims to “enable participatory community-driven resilience planning and investments in vulnerable areas.”

In its annual report for fiscal year 2024, the World Bank said the Philippines was the fifth-biggest borrower with USD 2.35 billion in approved loans from the International Bank for Reconstruction and Development.

Ukraine was the World Bank’s biggest borrower with USD 4.086 billion in loans, followed by Turkey with USD 3.191 billion, Indonesia with USD 3.028 billion, and India with USD 2.943 billion.

The total amount of loans secured by the Philippines in 2024 was 0.6% higher than USD 2.336-billion loans in 2023. – Aubrey Rose A. Inosante, Reporter