RP to get $1.7-B WB loans in next 3 yrs

The World Bank has earmarked up to $1.7 billion in loans to the Philippines over the next three years, a bank statement issued yesterday said.

The bank’s executive board has approved a three-year assistance strategy for the Philippines to "re-establish a pattern of rapid and sustained poverty reduction," the statement said.

The money would largely go to programs for improving access to basic services such as health, education, water, electricity, as well as credit facilities to help the poor improve their incomes, the statement said.

"To support such initiatives, the World Bank plans to provide about $1 billion in loans to the Philippines over the next three years," the bank statement said.

It added the figure may reach $1.7 billion "depending upon the pace of policy and institutional reforms."

World Bank country director for the Philippines Robert Vance Pulley said the bank has made it a "high priority" to spur investments, job creation and providing basic services to the poor.

Pulley said the Philippines has been taking steps to restore fiscal discipline by meeting its 2001 deficit target, by implementing reforms in the power sector and by passing a crucial law cracking down on money laundering.

The WB statement said three development projects have been identified for funding. These are: the Second Local Government Units Urban Water and Sanitation project which will receive $100 million; the Second Social Expenditures Loan project ($100 million); and the Metro Manila Urban Transport Integration project ($60 million).

However, the country was reminded of its poor record in terms of project implementation as well as disbursement.

In separate statements, the Asian Development Bank (ADB), the Japan Bank for International Cooperation (JBIC) and the World Bank urged the Philippines to improve the implementation of ODA-funded projects.

In a joint statement last December, the three ODA funding agencies stressed that "serious work is needed at the ground level."

They urged the Philippine government to maximize and properly utilize the funds if it hopes to look for new funds in the following years. They also urged the country to speed up charter amendments and legislative actions towards reforms in the Bangko Sentral ng Pilipinas (BSP) and the Philippine Deposit Insurance Corp. (PDIC), as well as the restructuring of the country’s energy sector. — Ted Torres, AFP