Three new foreign loans totaling $980 million will be added to the Philippines’ ballooning debt pile in June upon the go-ahead from the World Bank.
Scheduled for approval by the Washington-based lender’s board on Wednesday, June 2, is a $300-million loan for the country’s seismic risk reduction and resilience project. The Department of Public Works and Highways project, costing a total of $309.5 million, will help fortify government buildings in Metro Manila from earthquake risks.
World Bank estimates had shown that “The Big One” scenario—a strong, 7.2-magnitude earthquake along the West Valley Fault—could inflict about 48,000 fatalities and $48 billion in economic losses.
The World Bank will also approve two loans on June 24: $400 million for the first financial sector reform development policy financing that will be implemented by the Department of Finance; and $280-million additional financing for the Department of Agriculture’s rural development project.
These three forthcoming World Bank approvals formed part of the 13 loans in the multilateral lender’s near-term pipeline for the Philippines, worth a total of $3 billion. INQ