The World Bank said Friday funding support to the Philippines could reach $1.4 billion in the next two years, including loans to support peace efforts and development in Mindanao as part of a mid-term adjustment plan.
The bank said in a statement it would commit loans of $660 million in 2018, including funding for the Metro Manila Flood Management Project, the first project in the Philippines planned for co-financing with the Asian Infrastructure Investment Bank.
“In 2019, total funding could reach $750 million, including projects for agriculture and education in Mindanao,” the World Bank said.
The bank said the initiative followed the completion of the performance and learning review report endorsed by the World Bank’s board of executive directors.
“This scaled-up program for the entire Mindanao will focus on supporting the government’s program to raise agricultural productivity and improve connectivity from farm to market, boost education, skills, and employability of the youth, and help build resilient communities,” it said.
The World Bank said its support to the conflict-affected region had been significant in recent years, leading to over 682,000 people benefiting from better infrastructure and access to jobs and initiatives that improve literacy.
World Bank country director for Brunei, Malaysia, the Philippines and Thailand Mara Warwick said Mindanao accounted for 36 percent of all poverty in the Philippines, adding poverty was highest in areas affected by conflict.
“The World Bank Group fully supports the government’s focus on developing lagging regions, including in Marawi and surrounding areas,” Warwick said.
She said World Bank, along with the Asian Development Bank, would coordinate financial assistance from the development partners for the rehabilitation and reconstruction of Marawi City. Also, the World Bank will provide technical assistance for the early recovery, rehabilitation, and reconstruction planning for Marawi City as requested by government.
It said the partnership strategy for the Philippines would continue to work on five engagement areas, aligned with the development priorities of the government.
“These are transparent and accountable government; empowerment of the poor and vulnerable; rapid, inclusive and sustained economic growth; resilience to climate change, environment, and disaster risk management; and peace, institution building, and social and economic opportunity, with focus on conflict-affected areas in Mindanao,” it said,
The group further said sustained growth averaging 4.6 percent between 2010 and 2016, along with well-targeted social sector spending, had contributed to significant recent poverty reduction in the country.
The government more than doubled social services spending during the time, enabling significant allocations for health care and poverty reduction through the Pantawid Pamilyang Pilipino Program (4Ps), the national program providing conditional cash transfer, which is supported by the World Bank.