The World Bank has approved a six-month extension of its $300-million loan for a delayed project aimed at strengthening Metro Manila’s preparedness for “The Big One” earthquake, after the Philippine government sought more time to implement key activities that have yet to begin.

In a restructuring paper disclosed last Monday, June 8, the Washington-based multilateral lender said the closing date of its investment project financing (IPF) for the Philippines Seismic Risk Reduction and Resilience Project would be moved to Dec. 31, 2026, from the original June 30, 2026 deadline.

The extension came at the request of the Philippine government and marks the first restructuring of the World Bank Group’s (WBG) International Bank for Reconstruction and Development (IBRD)-financed project. IBRD is the WBG’s lending arm for developing countries like the Philippines.

However, the World Bank described the move as only an interim extension, saying a second restructuring involving a longer extension and revisions to project targets would still be needed to achieve the project’s development objectives (PDOs).

“This six-month restructuring is an interim extension of the closing date. It is being processed to allow for the completion of the government’s internal review and approval process for a longer extension and revisions to the results framework,” the World Bank said.

According to the World Bank, the government is still securing approvals from the inter-agency Investment Coordination Committee (ICC) and the Economy and Development (ED) Council, which is chaired by President Ferdinand R. Marcos Jr., for the proposed longer extension.

The project, approved by the World Bank back in June 2021 and effective since October that year, is backed by a $300-million loan and complemented by $9.5 million in government counterpart funding.

Its PDOs are to improve the safety and seismic resilience of selected public buildings in Metro Manila as well as strengthen the Department of Public Works and Highways’ (DPWH) capacity to prepare for and respond to earthquake-related emergencies.

Under the project, about 425 public buildings, including schools and other public facilities, are targeted for structural as well as functional upgrades, benefiting an estimated 290,000 occupants.

The project also finances emergency response equipment as well as capacity-building activities to strengthen the DPWH’s implementation of Oplan Metro Yakal Plus, the government’s contingency plan for a magnitude-7.2 earthquake along West Valley Fault and related hazards.

Despite being less than a month away from its original closing date, only $66 million, or 22 percent, of the total loan had been disbursed to date.

The World Bank said the project remains rated “moderately unsatisfactory” both in terms of progress toward achieving its PDOs and overall implementation.

“The first PDO indicator is not met because no civil works have been completed and the second PDO indicator is partially achieved with equipment procured,” the lender said.

Still, the World Bank pointed to signs of improvement during its latest implementation mission last April, citing the DPWH’s delegation of design approval authority to the project director as a significant step toward accelerating implementation.

For the first batch of 67 buildings, detailed engineering designs have already been approved, contracts have been awarded, and contractor mobilization is expected to begin by the end of June.

Procurement for another 80 buildings is scheduled to begin this month, while bidding for the remaining civil works packages is expected to start in July and August.

Progress has been more substantial under the project’s emergency response component.

The World Bank reported that 124 units of heavy equipment have already been procured and strategically pre-positioned in the cities of Manila, Taguig, and Quezon City, as well as the provinces of Batangas, Bulacan, and Laguna. This exceeded the project target of 70 units and partly fulfilled the objective of enhancing the DPWH’s emergency response capabilities.

To recall, Manila Bulletin reported in November last year that the World Bank downgraded the project’s implementation progress rating to “moderately unsatisfactory” from “moderately satisfactory” previously, warning that seismic retrofitting works for public schools and health facilities—the project’s most critical component—had yet to begin despite the approaching loan closing date.

World Bank estimates show that “The Big One,” a magnitude-7.2 earthquake along West Valley Fault, could result in about 48,000 deaths and inflict economic losses of as much as $48 billion.