World Bank to extend $4.2-B loans, investments to PH

Posted at 07/16/2014 1:38 PM | Updated as of 07/16/2014 4:23 PM

MANILA, Philippines – The World Bank Group and the International Finance Corp. (IFC) are planning to extend $4.2 billion in concessional loans and investments to the Philippine government in the next four years.

The World Bank said it will provide $3.2 billion in financing for development to the Philippine government while IFC, its private sector arm, will invest another $1 billion for business and industry.

The fresh financing and investments will be made on top of the World Bank’s proposed Philippines Rural Development Project.

The World Bank is also investing another $119 million for infrastructure and job generation projects in support of the Mindanao peace process.

The funding is part of a rural development project and aims to support road projects and potable water initiatives, including those in conflict-affected areas of the Autonomous Region in Muslim Mindanao (ARMM).

“The peace process is very important for attaining peace and development in Mindanao, including the ARMM where the conflict-affected areas are among the poorest regions in the country—with a poverty rate over 50 percent, more than twice the national average,” World Bank President Jim Yong Kim said.

“Together with the IFC, the World Bank is scaling up support for rural development and job creation in the region, with the Bank providing financial assistance to critical public infrastructure and the IFC promoting private investment in agribusiness,” he added.

Kim believes this project can bring major changes to Mindanao and critical to poverty reduction in the country.

Kim was on two-day visit to Manila and met with President Aquino to discuss an additional $6.6 million in World Bank funding for the Mindanao Trust Fund.

He also participated in Malacanang’s “Daylight Dialogue,” where he lauded government’s efforts in eradicating corruption and promoting greater accountability and transparency.

“Good governance means delivering public services effectively and efficiently, while being transparent about what you spend and the results you achieve,” he said.