World Bank hikes RP loan package by 31%

MANILA, Philippines - The World Bank (WB) has increased its loan package to the Philippines by 31 percent to over $320 million in fiscal year 2009 “to help the country weather the effects of the global financial crisis.”

In a statement, World Bank Philippines country director Bert Hofman said the new Country Assistance Strategy (CAS) loan package will finance development programs and projects, including a quick-disbursing $200-million fund for the Global Food Crisis Response Program Development Policy Operation.

The loan window supported the country’s programs to address high food prices and strengthened social protection and safety nets for the poor, he said.

 The World Bank’s fiscal year starts July 1 and ends June 30.

“Fiscal year 2009 was particularly challenging as the Philippines and the rest of the world were hit by shocks coming from the global food crisis and the global financial meltdown. With the new CAS, the bank is in a better position to help address the country’s development needs as it battles the impact of the evolving global recession,” Hofman said.

Additionally, he said another $250 million to $350 million can be put up by the International Finance Corp. (IFC), the private sector financing arm of the World Bank, as investments in development projects.

For the current fiscal year, IFC has committed investments worth $183.5 million for two energy projects - the Ambuklao-Binga hydroelectric power facilities and Energy Development Corp. (EDC) – in support of the privatization of the Philippine power sector.

Under the CAS for fiscal years 2010 – 2012, the World Bank has committed $700 million to $1 billion per year to the Philippines on top of grants and a large program of analytical and advisory activities.

As of May 2009, the World Bank’s total net commitments in approved and ongoing projects reached $1.39 billion covering 24 active projects.