PHL batting to increase World Bank recovery funding to $750M
THE PHILIPPINES is seeking to increase the size of its first sustainable recovery development policy loan (DPL) from the World Bank to $750 million, the World Bank said.
“The DPL series aims to support the government of the Philippines’ reforms to accelerate the economic recovery and boost long-term growth; and protect the environment and improve climate resilience,” according to a document uploaded on the World Bank website.
In December, the loan was initially pegged at $600 million. The loan is expected to be approved by the World Bank board on May 16.
The loan series aims to increase public investment in services and private investment in renewable energy and public infrastructure.
It also seeks to raise the share of renewable energy in the energy mix, the reduction of plastic waste while increasing recovery and recycling, greater use of green transport, and increased production and consumption of green goods and services through public procurement.
“Climate change poses major risks to development in the Philippines and will affect the country’s ability to meet its development goals and pursue green, resilient, and inclusive development,” the World Bank said.
“The country is exposed to frequent natural disasters and thus prone to the impacts of climate change, which cause severe economic and fiscal shocks and threaten socioeconomic development. Without mitigation action, climate change will impose substantial economic and human costs, affecting the poorest households the most,” it added.
The project will be monitored and evaluated by the Department of Finance and the World Bank.
The implementing agencies will include the Anti-Red Tape Authority, the Bureau of Internal Revenue, the departments of Budget and Management, Energy, Environment and Natural Resources, and Trade and Industry, and the National Economic and Development Authority.
The bank is currently supporting 15 ongoing Philippine programs and projects worth $4.96 billion.
In January, the World Bank approved the Philippines’ second financial sector reform policy loan worth $600 million.
As of March 2022, the World Bank was the Philippines’ third-largest official development assistance (ODA) partner, with loans and grants amounting to around 23.38% of total ODA.
This year, the National Government expects to obtain around $19.1 billion worth of ODA. — Luisa Maria Jacinta C. Jocson