MANILA, Philippines - The World Bank has approved a $50- million loan to state-run Development Bank of the Philippines (DBP) for a project aimed at supporting investments in public infrastructure and services.
In a statement, the World Bank said its board approved the loan for DBP’s Regional Infrastructure for Growth Project (RIGP), which will increase access to public infrastructure and services financing.
DBP will lend the $50 million to local government units (LGUs), public utilities, local government-owned and -controlled corporations as well as private sector enterprises that are developing infrastructure and providing services through Public-Private Partnerships.
DBP will also channel financing through wholesale loans to private financial institutions for on-lending to local service providers.
“The project will finance a wide array of local public infrastructure and services that meet the objective of improving physical and economic integration,” DBP president and CEO Francisco Del Rosario Jr. said.
“These projects will typically be among the priorities identified by a provincial agency or by a regional body or authority through their development and physical framework plans,” he added.
The projects that are eligible for financing include environmental infrastructure, agriculture support systems, disaster risk mitigation, social, transport and tourism support.
The World Bank said that while significant strides have been made to improve infrastructure and service delivery in many parts of the Philippines, many communities in the country continue to face development challenges due to limited access to financing.
“Many poor communities in the Philippines do not have adequate physical and economic infrastructure and services that promote integration such as vital link roads and bridges, and critical inputs such as electricity and water supply, among others,” Chiyo Kanda, World Bank acting country director, said.
“That is why the World Bank is committed to work with development banks, LGUs and other stakeholders to accelerate the implementation of these provincial and regional priorities. Projects like RIGP are important for achieving inclusive growth or growth that works for the poor,” Kanda added.