Philippines secures $1B World Bank loan for agriculture

The Philippines is set to sign a record-high $1-billion loan agreement with the World Bank in July to support its sustainable agriculture transformation program.

During a meeting on February 10, Department of Agriculture Secretary Francisco Tiu Laurel Jr. and World Bank Country Director Zafer Mustafaoglu discussed the upcoming signing ceremony and reviewed the deal's progress.

The five-year Philippine Sustainable Agricultural Transformation (PSAT) initiative aims to strengthen the agri-fishery sector through climate-responsive strategies, policy reforms, and improved fiscal management.

With a projected total cost of $20 billion, the World Bank will provide $1 billion while the Philippine government shoulders $11.895 billion out of the $12.8975 billion operation cost, leaving a financing gap of $2.5 million.

A $15-million grant from the UK will provide technical assistance for implementing PSAT by enhancing internal audits and expanding access to planting materials for high-value crops.