World Bank approves ₱45.8B loan for clean energy and water reforms

The World Bank's Board of Executive Directors has approved an $800 million loan, or approximately ₱45.8 billion, to support the Philippine government's efforts in scaling up clean energy technologies, enhancing electricity market security, and improving water management.

This First Energy Transition and Climate Resilience Development Policy Loan aims to boost renewable energy adoption from 30% in 2023 to 42% by 2027, support the procurement of 1,000 megawatts of offshore wind capacity, and implement annual energy efficiency measures saving five gigawatt hours.

World Bank Division Director Zafer Mustafaoğlu emphasized that focusing on renewable energy sources can reduce electricity costs, enhance energy security, and decrease pollution.

The loan will also introduce policy reforms for better coordination between national and local governments in water resources management and sanitation services to increase access to safely managed water supply and improve financial sustainability.

World Bank Senior Water Supply and Sanitation Specialist Maria Fiorella Fabella noted that these reforms are crucial for promoting more effective coordination, planning, and management across sectors and governments.