1 week ago
9
Marcos administration to borrow $3.41 billion more from Washington-based multilateral lender in 2025
Filipinos could see relief from additional transportation costs and product losses as the World Bank has approved two major transport and healthcare projects worth a combined $950.54 million or over ₱54 billion.
On top of these fresh loans, six more are scheduled to be greenlit by the World Bank this year, worth a total of $3.41 billion or almost ₱195 billion.
According to the multilateral lender, the two loans it approved on March 5 would benefit at least nine million Filipinos as it aims to enhance transport connectivity and health services in Mindanao and low-capacity provinces across the country.
Amounting to $454.94 million, the Mindanao Transport Connectivity Improvement Project will fund the upgrade and rehabilitation of a 428-kilometer (km) road corridor linking the cities of Cagayan de Oro, Davao, and General Santos, improving access to key ports and airports.
The project includes upgrading four key highways and three local roads, totaling 129.86 km.
“Better rural roads reduce transportation costs and product losses for poor farmers, significantly contributing to poverty reduction,” the World Bank said in a statement.
Pratap Tvgssshrk, World Bank senior transport specialist, said “sustained growth and poverty reduction in Mindanao requires making agriculture more productive, particularly the smallholder farmers.”
“Connecting rural and remote areas to urban centers where there is demand for farm produce is a key intervention to support growth in the agricultural sector.”
Meanwhile, the $495.6-million Philippines Health System Resilience Project will invest in healthcare networks, workforce development, and emergency response systems across 17 provinces, including 11 in Mindanao.
“It will also invest in disease surveillance, public health laboratories, and emergency response systems,” the World Bank said.
This initiative aims to bolster healthcare services for 17.9 million Filipinos, particularly those in remote and underserved areas.
“The health sector in the Philippines significantly depends on the efforts of local government units (LGUs) to provide essential services. However, many LGUs face challenges due to limited resources and capacity,” said Wei Han, World Bank senior economist.
Han then stressed that the project is crucial in strengthening low-capacity LGUs, enabling them to provide quality healthcare services and support socioeconomic growth by improving health outcomes in the country.
World Bank Country Director Zafer Mustafaoğlu said the lender is “committed to support the Philippines in its journey towards inclusive growth and its aspiration to become an upper middle-income country.”
These projects, he said, will “address regional disparities and improve the quality of life for many Filipinos.”
Moving forward, the World Bank is expected to approve on March 14 the $67.34 million Philippines Civil Service Modernization Project; on March 31, the $800-million Philippines First Energy Transition and Climate Resilience Development Policy Loan (DPL).
Two loans will be up for approval in June: the $1 billion Philippines Sustainable Agricultural Transformation Program—poised to be the biggest-ever single loan from the Washington-based multilateral lender; and the $240.6-million Accelerated Water and Sanitation Project in Selected Areas.
In July, the World Bank loans to be approved are the $600-million Project for Learning Upgrade Support and Decentralization and $700-million Philippines Community Resilience Project.
