The Philippines and the World Bank have signed a $300-million Development Policy Loan that will be used for infrastructure, social projects and in improving the country’s regulatory processes.
Finance Secretary Cesar V. Purisima announced that he had signed the World Bank’s Third Development Policy Loan (DPL 3) on October 14 on behalf of the Philippine government.
The Department of Finance (DOF) said the loan program aims to “spur sustained and inclusive growth and job creation through increasing physical and human capital investment, as well as tackling regulatory barriers in land, labor and capital markets.”
Under DPL 3, the Philippines will receive support in the following: strengthening priority public investments; reducing the cost of doing business that could translate to more businesses and more jobs; developing the human capital of the poor; and promoting fiscal transparency and good governance.
The DOF said the activities that will be funded by DPL 3 include infrastructure development and the streamlining of business-registration processes for micro, small and medium-sized enterprises.
DPL 3 will also provide funding for the government’s efforts to develop its large human capital, promote transparency in government, enhance the tax-collection efforts and develop a fiscal risk-management strategy.
“DPL 3’s strong focus on fiscal sustainability, infrastructure, human capital and good governance enables the Philippines to boost our inclusive growth agenda as we reach the tail-end of this administration. This is consistent with the Philippines’s partnership with the World Bank in ensuring our economic turnaround story translates into real and sustainable gains for the Filipino people,” Purisima said in a statement.
While the DOF serves as the main liaison with the World Bank on budget support operations, other departments will also help in the monitoring, evaluation and implementation of the foreign-funded projects of the bank.