The Philippine government has asked the World Bank to restructure and partially cancel over $2.34 million in unused proceeds from a Duterte-era loan supporting the country’s flagship Pantawid Pamilyang Pilipino Program (4Ps), even as the Washington-based multilateral lender cited the project’s “strong performance” and satisfactory implementation.

According to a World Bank restructuring paper disclosed last May 20, the Department of Finance (DOF) requested the cancellation of unwithdrawn funds from the $600-million Beneficiary FIRST Social Protection (BFIRST) Project after determining that the remaining balance—stemming from foreign exchange (forex) differentials—would no longer be needed.

The World Bank noted that the BFIRST Project, approved in September 2020 and implemented since January 2021 at the height of the Covid-19 pandemic during the Duterte administration, was designed to cushion the impact of the health crisis on low-income households while modernizing the Department of Social Welfare and Development’s (DSWD) social protection systems.

The loan, which closes on June 30, 2026, following an earlier one-year extension, has been almost fully utilized, with $597.66 million or 99.61 percent already disbursed to date.

Unlike other World Bank restructuring exercises tied to delayed or troubled projects in the Philippines, the lender said the BFIRST Project “demonstrated strong performance in its implementation,” with most performance-based conditions and result indicators fully achieved.

The latest implementation report last March rated both the project’s progress toward achieving its development objective and its overall implementation as “satisfactory.”

The World Bank described 4Ps as the “backbone of safety nets” serving poor and vulnerable households nationwide. As of March this year, 4Ps covered 2.86 million active household beneficiaries with 6.74 million eligible children across 82 provinces, 149 cities, 1,493 municipalities, and 41,582 barangays.

Of the total active 4Ps beneficiaries, 86 percent or 2.46 million were female grantees, while indigenous households accounted for 354,385 beneficiaries or 12 percent of total active 4Ps households.

The lender also pointed to the near-universal adoption of digital payment systems under 4Ps, with almost all beneficiaries now receiving transfers through transaction accounts.

Under the restructuring request, the DSWD likewise asked the World Bank to revise the BFIRST Project’s results framework to reflect the government’s decision to reduce the target number of 4Ps beneficiaries following the decline in poverty incidence across the country.

The latest Philippine Statistics Authority (PSA) poverty data estimated 3.86 million poor families nationwide, prompting the DSWD to recalibrate the annual target coverage for 4Ps beneficiaries to 3.5 million households beginning this year from the previous target of 4.4 million households.

Between 2008 and 2025, the government said 4Ps helped 1.61 million households achieve self-sufficiency, excluding those that exited the program through natural attrition, according to the World Bank.

The restructuring paper noted that 4Ps exceeded its annual targets in both 2021 and 2022.

According to the World Bank, the BFIRST Project also financed several digital reforms within the DSWD, including the integration of the national ID system or PhilSys into 4Ps verification processes, development of an integrated grievance information system, expansion of digital payment mechanisms, as well as creation of a dynamic social registry with a unified database.

The World Bank likewise noted that BFIRST remained fully compliant with legal, environmental, and social safeguard requirements despite some procurement delays affecting a number of remaining contracts.

Once the restructuring is approved, the project is expected to fully disburse the remaining loan amount before its scheduled closing in mid-2026.