The World Bank on Wednesday said it has approved a 750 million U.S. dollar loan to finance Philippines’ programmes to boost environmental protection and climate resilience.
The Southeast Asian country got the approval as it strives to accelerate economic recovery and promote long-term economic growth.
“The Philippines First Sustainable Recovery Development Police Loan supports ongoing government reforms to attract private investment in renewable energy.
“The loan will enhance plastic waste management through reduction, recovery, and recycling; promote green transport, including electric vehicles; and reduce climate-related fiscal risks from the agriculture sector.”
The World Bank said the financing programme also supports introducing new insurance products suitable for vulnerable smallholder farmers and strengthens the coverage and operations of the Philippine Crop Insurance Commission.
“The aim is to help mitigate climate-related disaster risks to the country’s budget and the farming sector. If properly designed and targeted, crop insurance can help stabilize farm income, reduce poverty, and provide a climate safety net for food producers,” the bank said.
The development policy loan (DPL) assists countries in undertaking reforms to address development constraints.
DPLs typically support policy and institutional changes needed to create an environment conducive to sustained and equitable growth as defined by borrower countries’ development agenda.
“The Philippines has tremendous potential for renewable energy generation, especially solar and wind.
Ndiame Diop, World Bank Country Director for Brunei, Malaysia, Philippines, and Thailand said government actions to encourage investments in this sector, such as promoting foreign direct investments and streamlining the permitting process, could unlock this potential.” (Xinhua/ NAN)
