Gov’t seeks $2.8B in World Bank loans

The Philippines is on track to borrow at least $2.8 billion (more than P134 billion) from the World Bank across 14 project loans in the pipeline to cover procurement of COVID-19 vaccines and other developmental projects during the next couple of years.

As earlier reported by the Inquirer, the Philippines is seeking an additional financing of $300 million for the COVID-19 Emergency Response Project, which will augment the Department of Health’s funds for vaccine purchases.

The World Bank data showed that the biggest loan being sought by the Philippines in the near term included $400 million for the Pasig-Marikina River Basin Flood Management Project, which will cover more than half of the $700-million cost of the Department of Public Works and Highways (DPWH)-led project.

The DPWH’s $309.5-million Seismic Risk Reduction and Resilience Project will also be mainly financed by the World Bank, which committed to shoulder $300 million.

The Department of Agriculture has three upcoming projects up for World Bank lending: $280 million for the $361.83-million Rural Development Project Second Additional Financing; $200 million for the $220-million Fisheries and Coastal Resiliency Project, and $100 million for the $110-million Mindanao Inclusive Agriculture Development Project.

State-run National Power Corp. and Power Sector Assets and Liabilities Management Corp. (PSALM) are also awaiting a $300-million loan to cover the entire cost of the Agus-Pulangi Hydropower Complex Rehabilitation Project, on top of a $700,000 project preparation facility so Napocor can prepare the feasibility study and tender documents.

Two of the Department of Education’s projects will also be funded by World Bank loans: $200 million for the $210-million Strengthening Alternative Learning System for All plus $110 million for the $120-million Teacher Effectiveness and Competencies Enhancement Project.

A World Bank loan will likewise cover the entirety of the Department of Finance’s $200-million First Financial Sector Reform Development Policy Financing.

The bulk or $150 million of the Department of Tourism’s $170.5-million Sustainable, Inclusive and Resilient Tourism Project will come from the World Bank.

Also, the Washington-based multilateral lender will finance the $200-million Philippines Multisectoral Nutrition Project as well as the $65-million Civil Service Modernization and Human Resource Management in the Philippines Project. INQ