PH Looks to Secure Another Loan from the World Bank Worth $250 Million

The government hopes to secure another loan from the World Bank in order to improve Mindanao’s transport system. The amount being eyed is $250 million.

This loan will significantly cover a majority of the proposed project’s cost, which is at $380 million. However, the World Bank has not disclosed an approval date yet.

Around 12 loans for various Philippine pipeline projects are being financed by the World Bank. This latest loan for transportation networks in Mindanao will ramp it up to 13 loans with a total amount of $3.18 billion.

Despite the missed timelines on project implementations due to the global pandemic, the World Bank still approved 3 significant loans in June alone.

There was the Department of Public Works and Highways’s (DPWH) $300-million loan for its seismic reduction and resilience project approved on June 2. This is geared towards the reinforcement of government buildings in preparation for “The Big One” which is expected to have a magnitude of 7.2 or higher.

A week ago, the World Bank also greenlit a loan amounting to $280 million to be used for the Department of Agriculture’s (DA) rural development project as additional funding.

On Thursday, another loan of $400 million was approved by the lender for the financing of the Department of Finance’s (DOF) financial sector reform development policy.

Other lenders, like the Asian Infrastructure Investment Bank (AIIB) based in Beijing, have also shelled out significant loans to fund other government projects.

Source: Inquirer