Gov't to sign P55-B World Bank agri loan

Release dependent on project’s measurable, verifiable indicators

- BY DEXTER BARRO II

The Philippines is set to sign next month a record-high $1-billion loan agreement, approximately P55.8 billion, from the World Bank to provide budgetary support for the country’s major infrastructure projects aimed at boosting the agriculture sector.

According to the World Bank’s website, the funding support will be directed to the Philippine Sustainable Agricultural Transformation (PSAT) program, under the Department of Agriculture (DA).

The Washington-based multilateral lender disclosed that the loan is scheduled for approval on June 27, while DA Assistant Secretary Arnel de Mesa said it is eyeing to sign the loan agreement for the project in July.

A document published on the World Bank’s website indicated that PSAT is projected to cost $20 billion (over P1.1 trillion), of which the Philippine government would shoulder the $11.9 billion (over P683 billion) out of the $12.8975 billion (over P741 billion) operation cost. With the $1-billion funding, there would be a financing gap of $2.5 million.