WB approves $1.25 billion in loans for education and maritime sectors

Author: Ian Nicolas P. Cigaral – 5 minutes ago

MANILA, Philippines – The World Bank (WB) on Saturday approved $1.25 billion in loans for the Philippines to build safe and resilient schools and develop infrastructure for the maritime sector.

In a statement, the Washington-based multilateral lender said its executives had given the green light to $500 million in financing for a project called “Infrastructure for Safer and More Resilient Schools” and a $750 million loan for reforms to the domestic shipping sector.

The new loans are expected to increase the government’s debt to PHP15.02 trillion as of April this year.

READ: World Bank to Philippines: Invest in Youth Now to Boost Economy

The first project aims to support the effective reconstruction of disaster-affected schools in the Cordillera Administrative Region, Caraga, Central Luzon, Bicol, Western Visayas, Central Visayas, Eastern Visayas, Davao and Soccsksargen.

This loan will finance the repair, rehabilitation, modernization, reconstruction and improvement of the locations of schools that have been severely affected by the recent earthquakes and tropical cyclones. According to the World Bank, these interventions will improve the physical learning environment for over 700,000 students, with half of the beneficiaries being girls.

At the same time, WB funding would help ensure that education authorities at central and local levels have up-to-date protocols and information regarding the operation and maintenance of restored school infrastructure.

“By strengthening the resilience of educational institutions, disruptions to learning due to natural disasters can be minimized, allowing children to continue learning with fewer interruptions,” said Fernando Ramirez, senior disaster risk management specialist at WB.

Meanwhile, the second project will support reforms aimed at increasing investment in public service sectors and attracting private investment in public infrastructure, especially in domestic shipping, WB said.

The aim of the project is to help promote renewable energy, protect the environment and improve resilience to climate change.

The World Bank hopes these reforms will help the Philippines transition more quickly to a greener economy and achieve its environmental and climate goals, said Ralph van Doorn, a senior economist at the bank.

“The reforms supported by this loan program, if implemented, will encourage private investment, innovation and sustainable growth,” Van Doorn added.