Philippines signs $1.14-B worth of loans with World Bank

The Philippines on Monday inked $1.14-billion worth of loan agreements with the World Bank, set to finance government initiatives on economic recovery and developing the agriculture and fisheries sectors, among others.

According to the Department of Finance (DOF), the four loan agreements were signed by Finance Secretary Benjamin Diokno and World Bank country director for the Philippines Ndiame Diop at the agency’s office in Manila.

The biggest of the agreements is $750 million for the Philippines First Sustainable Recovery Development Policy Loan (DPL) that will support the country’s policy reforms that target environmental protection and climate resilience.

Also included is $276 million for two projects of the Department of Agriculture's (DA) Bureau of Fisheries and Aquatic Resources (BFAR) — the Mindanao Inclusive Agriculture Development Project (MIADP), and the Philippine Fisheries and Coastal Resiliency Project (FishCoRe).

Based on its framework, the MIADP seeks to boost the economic situation of select indigenous communities, and improve the approach and capacity of local government units to continue programs that address the low incomes due to weak marketing linkages and poor infrastructure.

Its beneficiaries include indigenous peoples organizations (IPOs) and indigenous cultural communities and/or indigenous peoples in the eligible ancestral domains as recognized by the National Commission on Indigenous Peoples.

Meanwhile, the FishCoRe seeks to enhance the ecosystem and community resilience in select fisheries management areas (FMAs) and the value of fisheries production in coastal communities, and improve the management of resources.

The project is made up of three components — Fisheries and Coastal Resilient Resource Planning and Management, Modern and Resilient Livelihood Investments, and Support to Project Implementation and Management.

The agreements also include a $110-million loan agreement for the Teacher Effectiveness and Competencies Enhancement Project (TEACEP) of the Department of Education (DepEd), which aims to improve access to education in Zamboanga, Soccsksargen, and the Bangsamoro Autonomous Region in Muslim Mindanao.

The latest data available from the Bureau of the Treasury (BTr) show that the national government’s outstanding debt stood at P13.911 trillion as of end-April, reflecting a P52.24-billion increase from the previous month.

Just last week Budget Secretary Amenah Pangandaman was reported to have indicated that next year’s borrowings would amount to P2.46 trillion, including P1.968 trillion to be sourced locally, and P492 billion from overseas creditors.—LDF, GMA Integrated News