WB to grant RP $365-M project loans

The World Bank (WB) said yesterday it is considering granting the Philippine government $255 million to $365 million worth of project loans for this year.

Jemal Ud-din Kassum, World Bank vice-president for Far East Asia and the Pacific, said there are at least four projects and one program loan proposed for funding by the Philippine government.

The proposed projects are the $100-million to $200-million Public Sector Reform Loan (PSRL), $100-million Second Social Expenditure Management Project (SEMP II), the $40-million Second Local Government Unit Urban Water Supply, a $10-million to $20-million Judicial Reform Project, and the $5-million Laguna Lake Environment Management (LIL).

However, Kassum said the Philippine government has yet to decide which of the loans will be prioritized. "We hope the review is completed soonest and urgent efforts are made to fund and implement the projects which are retained after the review," Kassum said, adding the WB has urged that as much as possible, proposed cuts in funding support should not adversely affect poverty reduction projects.

Aside from these loans, Kassum said the WB has so far made available to the Philippine government some $1.1 billion of WB funds of which $450 million is targeted at poverty alleviation projects.

At the same time, Kassum said the WB is discussing with government possible new commitments for funding in the next 12 months.

Kassum said the WB has told the Philippine government the bank will be able to commit bigger reforms provided that it speeds up the implementation and disbursement of official development assistance (ODAs) to poverty reduction programs.

"We believe that if the government is able to ensure sectoral reforms and do it with fiscal consolidation in the medium term, the prospects for recovery will improve substantially," Kassum said.