https://www.cnnphilippines.com/business/2023/6/27/World-bank-PH-loan.html
The Philippines and the World Bank inked four loan agreements worth $1.14 billion to finance the country’s initiatives on climate resilience, agricultural productivity, and education.
Finance Secretary Benjamin Diokno and World Bank Country Director for the Philippines Ndiame Diop signed the deals at the Department of Finance (DOF) on Monday, the agency said.
The biggest deal is the $750 million for the Philippines First Sustainable Recovery Development Policy Loan (DPL). It aims to bolster environmental protection and climate resilience, reach the country’s targets for renewable energy, and help reduce climate-related disaster risks.
The $110-million loan is allotted to the Teacher Effectiveness and Competencies Enhancement Project (TEACEP) of the Department of Education (DepEd). It seeks to improve the access to education in Zamboanga, Soccsksargen, and the Bangsamoro Autonomous Region in Muslim Mindanao.
Meanwhile, the $276-million loan is for the Mindanao Inclusive Agriculture Development Project (MIADP) and the Philippine Fisheries and Coastal Resiliency Project (FishCoRe). These are projects of the Department of Agriculture.
The MIADP seeks to improve the economic situation of select indigenous communities while the FishCoRe aims to increase agricultural productivity and improve fisheries management.
The DOF did not mention the interest rates and tenor for the four loan agreements.
The Bureau of the Treasury reported that as of end-April, the country’s outstanding debt is at ₱13.91 trillion — ₱54.24 billion more than in March due to the weakening of the peso against the US dollar.
The Marcos administration eyes ₱2.46 trillion in loans for 2024, an 11% increase from 2023.
This is a significant step forward for the Philippines in addressing pressing issues such as climate resilience, agricultural productivity, and education. The allocation of $1.14 billion through these loan agreements with the World Bank reflects a commitment to sustainable development and addressing key challenges facing the nation. Initiatives like the Sustainable Recovery Development Policy Loan (DPL) and projects like Teacher Effectiveness and Competencies Enhancement Project (TEACEP), Mindanao Inclusive Agriculture Development Project (MIADP), and Philippine Fisheries and Coastal Resiliency Project (FishCoRe) are crucial for fostering resilience, enhancing education access, and promoting economic development, especially in vulnerable regions like Zamboanga, Soccsksargen, and the Bangsamoro Autonomous Region in Muslim Mindanao. However, it's imperative for transparency that the details regarding interest rates and tenor are disclosed. Additionally, as the country's outstanding debt increases, it's vital for the government to ensure prudent management of finances and effective utilization of borrowed funds to achieve sustainable and inclusive growth.