PH signs a $600-M loan deal with World Bank for agri modernization
MANILA, Philippines — The Department of Finance (DOF) has signed a $600-million loan agreement with the World Bank (WB) for the modernization and industrialization of the agricultural sector, said Malacañang on Monday.
Dubbed the Philippine Rural Development Project (PRDP) Scale-Up, DOF signed the deal with WB on July 7.
“The Government of the Philippines, through the Department of Finance and the World Bank, signed a US$600-million loan agreement on July 7, 2023, for the Philippine Rural Development Project Scale-Up, which is geared towards transforming agriculture into a modernized and industrialized sector through public infrastructure interventions and strengthening the commodity value chain,” said Palace in a joint statement with DOF.
As of July 2023, WB has given the Philippines loans and grants worth $7.94 billion.
The project itself amounts to a total of $818 million or P45.01 billion, with the remaining S$218 million to be funded by the national government.
According to Malacañang, the initiative is meant to boost the access of local workers to markets, increase income from agri-fishery value chains and improve efficiency in the food supply chain.
PRDP will cover 16 regions and 82 provinces.
“In a stakeholder meeting last June 6, 2023, President Ferdinand “Bongbong” Marcos, Jr. emphasized the need to develop the agriculture sector, not only in terms of production, but also in ensuring the welfare of farmers and fisherfolks,” said Malacañang.