World Bank approves $1.25 billion in loans for education and maritime sectors

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 executive directors 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 country’s shipping sector.

The new borrowing is expected to push government debt to £15.02 trillion from 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 fund the repair, renovation, modernization, reconstruction and improvements of schools that have been severely affected by the recent earthquakes and tropical cyclones. These interventions, WB said, will improve the physical learning environment for more than 700,000 students, with girls making up half of the beneficiaries.

At the same time, WB funding would help ensure that education authorities at central and local levels have up-to-date protocols and information for 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 reported.

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

The World Bank hopes that with these reforms the Philippines will be able to more quickly transition to a greener economy and achieve its environmental and climate goals, said Ralph van Doorn, the bank’s senior economist.

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