The Marcos Jr. administration will borrow $650 million, or over ₱37 billion, from the World Bank next year to sustain the conditional cash transfers for the Pantawid Pamilyang Pilipino Program (4Ps) and ensure that its youth beneficiaries land jobs.

According to a Sept. 20 project information document (PID), the multilateral lender’s Washington-based board is expected to approve the investment project financing (IPF) for the Social Protection for Economic Inclusion, Empowerment, and Digital Innovation (SPEED) Project on March 31, 2026.

This project, to be implemented by the Department of Social Welfare and Development (DSWD), aims to “enhance access to human capital services and economic opportunities among 4Ps beneficiaries, and strengthen the social protection system,” the document said.

As customary, the Department of Finance (DOF) will borrow on behalf of the Philippine government.

On top of the forthcoming loan from the World Bank Group’s (WBG) International Bank for Reconstruction and Development (IBRD), the project will also draw $6.4 million from the World Bank’s Global Shield Financing Facility (GSFF), a trust fund, which, according to its website, supports poor and vulnerable countries and people with increased access to financial protection against climate shocks, disasters, and crises.

The bulk, or $9.46 billion (about ₱540 billion), of the $10.12-billion (around ₱577 billion) total project cost will be shouldered by the national government through its annual budget.

According to the World Bank, its IPF for the SPEED project will have three main components, the first of which would entail $500 million to support 4Ps cash transfers to a bid to strengthen human capital and reduce poverty.

“It will finance a portion of the cash transfers to eligible beneficiaries following a disbursement recurrent conditions approach during the first four years of project implementation. The World Bank will reimburse grants that have been effectively transferred to eligible households that have met the program’s rules and procedures, including those located in areas more exposed to climate change risk. Reimbursements will follow compliance with conditions linked to the payment of full benefits to beneficiaries,” the lender said.

The loan will also set aside $130 million to enhance support services and case management for 4Ps’ youth beneficiaries, either through wage employment support or entrepreneurship support and social security.

The third component will strengthen social protection (SP) delivery systems and shock response by the DSWD, to be funded by $26.4 million from the upcoming loan.

“While 4Ps has effectively supported human capital development for children and helped poor families meet basic needs, many households still lack the skills, resources, and opportunities needed for long-term economic self-sufficiency, evidenced by the fact that nearly half of all beneficiaries have remained in the program for over seven years,” the World Bank said.

Citing findings from the third impact evaluation conducted by the state-run think tank Philippine Institute of Development Studies (PIDS), the World Bank said that “while 4Ps beneficiaries participate in the labor force at similar rates as non-beneficiaries, they are less likely to be employed.”

Also, “although 4Ps implements a case management system and offers family and youth development sessions (FDS/YDS) to build life skills and provide access to services, employment support—especially for youth—remains limited,” it said.

As such, “the proposed project aims to collaborate with the government to strengthen the income-generating capacity of 4Ps beneficiary households, while continuing to support both existing and new beneficiaries through improved case management and enhanced digital SP delivery systems,” it added.

“The proposed project is aligned with the World Bank’s country partnership framework (CPF) for 2025-2031, which aims to improve the quality of life for all Filipinos by strengthening human capabilities, expanding economic opportunities, and reducing vulnerability to shocks,” according to the document.

Besides this loan to support 4Ps, the World Bank is expected to approve at least seven other loans for the Philippines during its current fiscal year (FY) 2026, which started in July this year: $600 million for the Project for Learning Upgrade Support and Decentralization in November; $18.85 million for Pandemic Fund-Resilient Philippines, $800 million for the Philippines Growth and Jobs Development Policy Loan (DPL), and the biggest-ever single loan of $1 billion for the Philippines Sustainable Agriculture Transformation (PSAT) Program in December; as well as $250 million for the Philippines Skills Project, $275.39 million for the Philippines Accelerated Water and Sanitation Project in Selected Areas (AWSPSA), and $358 million for the Improving Micro, Small and Medium Enterprise (MSME) Access to Finance for Resilience to Climate Shocks, also in March next year.

As Manila Bulletin reported earlier, the WBG plans to extend to the Philippines as much as $23 billion in loans and other financing from mid-2025 to mid-2031, which coincides with the lender’s FYs 2026 to 2031, amid the country’s climb to upper-middle-income-country (UMIC) status.

Under their new six-year CPF, the Philippines is scheduled to borrow about $7.85 billion from the WBG’s IBRD in the next two years. IBRD is the WBG’s lending arm for developing countries like the Philippines.