The Department of Finance (DOF) said it secured funding commitment from the World Bank Group to support the country’s agriculture sector and human capital development.
DOF Secretary Falph Recto said that in a meeting with regional vice president for East Asia and the Pacific Manuela Ferro on Oct. 22, 2024, the World Bank reaffirmed its commitment to supporting projects aimed at increasing productivity and incomes for Filipino farmers and modernizing the agriculture sector to make it more commercially viable and export-oriented.
Recto welcomed the bank’s assistance, noting that accelerating the expansion of the agriculture sector would help further reduce inflation and grow the economy faster.
The bank also reaffirmed its support for strengthening the Philippines’ human capital development, particularly in education, to help the country take advantage of its demographic sweet spot.
Recto emphasized the need to improve the quality and learning outcomes of the country’s education system, with a special focus on basic education.
Meanwhile, the World Bank recognized that investor confidence in the Philippines remains strong driven by wide-ranging business-friendly reforms, and conveyed its keen intent to help the country attract more private investments.
Recto underscored the Philippines’ great potential to integrate into the global supply chain of high-value manufacturing, especially in the semiconductor industry.
He also called for more investments in renewable energy to facilitate the country’s green transition.
Recto sought the bank’s assistance in strengthening cybersecurity, which is a critical aspect of the Department of Finance’s (DOF) digitalization program aimed at boosting revenue collection and improving public service delivery.
Recto asked the World Bank to provide grants and technical assistance for project preparation to improve the delivery of WBG-funded projects.
He also reiterated his call for the bank to provide more concessional financing, to which the bank responded positively by citing reforms recently approved by the WBG board such as the introduction of grace periods in paying commitment fees and removal of prepayment premium, among others.
The World Bank also mentioned that another package of pricing reform is under discussion to further lower borrowing costs.
The World Bank’s International Bank for Reconstruction and Development (IBRD) is the Philippines’ third-largest official development assistance (ODA) partner as of June 2024, with a total ODA amounting to $8.84 billion. This represents 18.86 percent of the Philippines’ total ODA.
