The Market Monitor Minding the Nation's Business
The World Bank (WB) is set to extend $2.75 billion in loans to the Philippines for fiscal year 2026, reflecting a 3.7 percent decrease from the $2.857 billion allocated for 2025.
Despite the reduction, the lending program highlights the WB’s sustained commitment to supporting the country’s development efforts.
WB Director for the Philippines, Malaysia, and Brunei Zafer Mustafaoğlu confirmed that the bank has finalized a new country partnership framework for 2025-2028.
Among the key projects under the 2026 lending program is the $4-million Roads to Development Project, which was approved on February 28. The initiative aims to improve rural road access in six Moro Islamic Liberation Front (MILF) camp communities.
Two major projects are also set for approval on March 5. The $454.94-million Mindanao Transport Connectivity Improvement Project (MTCIP) will focus on enhancing local roads, improving climate resilience, and strengthening road safety in the Cagayan de Oro, Davao, and General Santos corridor.
Meanwhile, the $495.6-million Health System Resilience Project aims to bolster provincial health systems and improve preparedness for health emergencies, including climate-related risks.
Mustafaoğlu underscored the significance of these initiatives, stating that “the MTCIP focuses on local road improvements, climate resiliency, and road safety in the Cagayan de Oro, Davao, and General Santos corridor.”
He also noted that “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.”
Other major projects under consideration include the $67.34-million Civil Service Modernization Project, scheduled for approval on March 10, which seeks to enhance human resource management in national government agencies.
The $800-million First Energy Transition and Climate Resilience Loan, expected to be approved on March 31, is designed to promote clean energy adoption, improve electricity market competition, and enhance water management.
On June 5, the $1-billion Sustainable Agriculture Transformation Program is set for approval, aiming to advance climate-resilient agri-food systems for increased productivity and diversification.
Additionally, the $240.6-million Accelerated Water and Sanitation Project, expected to be approved on June 27, will focus on expanding access to safe water and sanitation services while improving the efficiency of local water service providers.
The Department of Education’s (DepEd) $600-million Project for Learning Upgrade Support and Decentralization, up for approval on July 16, seeks to strengthen foundational literacy and numeracy among public school learners.
Lastly, the $700-million Community Resilience Project, slated for approval on July 28, aims to support community-driven resilience planning and investments in vulnerable areas.
In its annual report for fiscal year 2024, the WB ranked the Philippines as the fifth-largest borrower, securing $2.35 billion in approved loans from the International Bank for Reconstruction and Development.
This figure represents a 0.6 percent increase from the $2.336 billion in loans obtained in 2023, underscoring the country’s continued access to international financing for development. (TRACY CABRERA)