World Bank Approves $800M Loan to Boost PH Clean Energy and Water Sector Reforms

The World Bank has approved an $800-million loan—equivalent to roughly ₱45.6 billion—to support the Philippines’ efforts in accelerating its clean energy transition and improving water management systems.

Dubbed the “First Energy Transition and Climate Resilience Development Policy Loan,” the financial support will be rapidly disbursed to assist reforms in three major areas: clean energy adoption, electricity market competitiveness, and water sector governance.

The loan aims to:

• Increase the share of renewable energy in power generation from 30% in 2023 to 42% by 2027

• Support the procurement of 1,000 MW of offshore wind energy

• Implement energy efficiency measures to save 5 gigawatt-hours (GWh) annually

World Bank officials emphasized that shifting to local renewable energy sources and enhancing competition in the electricity sector could lower electricity costs, improve energy security, and reduce environmental pollution.

“The Philippines needs reforms to meet its renewable energy and efficiency goals while ensuring affordability and reliability,” said Feng Liu, World Bank Senior Energy Specialist.

On the water sector side, the policy loan will also support reforms to promote better coordination among national and local governments, boost access to safe water and sanitation, and improve financial sustainability of local utilities.

“This is a milestone for the Philippine water sector. It encourages integrated planning and management across different levels of government,” said Maria Fiorella Fabella, World Bank Senior Water Specialist.