The Philippines and the World Bank have agreed on the terms of the 466.07-million euro (equivalent to $500 million or over P29 billion) loan to ensure the safety and resiliency of schools in the country from natural disasters.
Official documents disclosed on Nov. 19 showed that Finance Secretary Ralph G. Recto, on behalf of the Philippine government, signed the loan agreement for the Infrastructure for Safer and Resilient Schools Project last Monday, Nov. 18.
For the World Bank, its country director for the Philippines Zafer Mustafaouglu signed the agreement on Nov. 17.
The Washington-based multilateral lender's board approved this euro-denominated loan back in June, making it part of Philippine loans secured during the prior fiscal year 2024, which covered the period July 1, 2023 to June 30 of this year.
With the loan agreement signed, the project can finally start implementation. This loan covered the bulk of the $515-million (more than P30-billion) total project cost.
A World Bank implementation status and results report last October noted that the project was yet to be active during that time, as the loan agreement had been pending with the departments of Education (DepEd) and of Finance (DOF).
To be jointly implemented by the DepEd and the Department of Public Works and Highways (DPWH), this investment project financing is aimed at supporting the resilient recovery of disaster-affected schools in nine Philippine regions.
The World Bank said the project will focus on the following regions where school infrastructure damage and risks are the greatest: Bicol, Caraga, Central Luzon, Central Visayas, Cordillera Administrative Region, Davao Region, Eastern Visayas, Soccsksargen, and Western Visayas.
"This project will finance the repair, rehabilitation, retrofitting, reconstruction, and site improvements of schools that were severely affected by earthquakes and tropical cyclones in recent years. These interventions will enhance physical learning environments for over 700,000 students, with girls making up half of the beneficiaries," a World Bank statement had said.
"The project will also support the improvement of the DepEd's operations and maintenance manual and tools, ensuring that both central and local level education authorities have up-to-date protocols and information for operating and maintaining restored school infrastructure. This will enable effective management and maintenance of the infrastructure following disasters," according to the World Bank.
This project financing will be implemented until end-2029.
The Philippine government shall repay principal for this loan from 2035 to 2052.
To recall, the Philippines was the fifth-largest borrower among the World Bank's International Bank for Reconstruction and Development (IBRD) developing country-clients in fiscal year 2024, during which concessional loans totaling $2.35 billion were secured.
If poorer countries belonging to the International Development Association (IDA) are included, the Philippines ranked as the seventh-biggest overall borrower from the World Bank in the previous fiscal year, after war-torn Ukraine ($4.086 billion), Ethiopia ($3.395 billion), Bangladesh ($3.362 billion), Türkiye ($3.191 billion), Indonesia ($3.028 billion), and India ($2.943 billion).
So far in fiscal year 2025, or from July 1 this year to June 30 of next year, the World Bank approved two new loans for the Philippines: the $750-million Second Digital Transformation Development Policy Loan (DPL) this month, and $287.2-million Digital Infrastructure Project last month.
Updated World Bank projects documents reviewed by Manila Bulletin showed that the Philippines will borrow over $2.7 billion more, across seven new loans, for the remainder of the 2025 fiscal year.
The World Bank board is set to green-light in February next year the $700-million Pagkilos - Locally-Led Climate Action, $496-million Health System Resilience Project, $456-million Mindanao Transport Connectivity Improvement Project, as well as $67.34-million Civil Service Modernization Project.
In March 2025, the World Bank will approve the $600-million First Energy Transition and Climate Resilience DPL.
The Philippines will also borrow $150 million for the Project for Learning Upgrade Support and Decentralization in May of next year.
Before the World Bank's current fiscal year closes in June next year, it is expected to lend $250 million for the Philippine Water Supply and Sanitation Project.