World Bank Approves $1-B Loan to Modernize PH Agriculture Sector
MANILA – The World Bank has approved a USD1 billion loan to strengthen agricultural productivity and climate resilience in the Philippines.
The funding, cleared by the lender’s Board of Executive Directors, will support the Philippines Sustainable Agricultural Transformation Project (PSAT), a program designed to implement broad reforms across the country’s agriculture sector.
The initiative aims to modernize farming practices, improve food and nutrition security, and generate employment opportunities, with at least five million Filipino farmers expected to benefit.
According to Zafer Mustafaoğlu, the project represents a major step toward transforming Philippine agriculture by promoting policies, systems, and partnerships that will make the sector more competitive and climate-resilient. He added that farmers will be better equipped to increase their income, adapt to climate challenges, and supply safer and more affordable food.
Under PSAT, climate-smart strategies will be introduced, including improved seed use, efficient nutrient management, water-saving technologies, and methods to reduce greenhouse gas emissions and post-harvest losses.
The program will also support crop diversification, expand agrifood exports by improving access to high-value crops and certification laboratories, and enhance market connectivity through better logistics systems.
A digital voucher system will also be launched to speed up and improve transparency in the distribution of farm inputs, linking government spending to measurable improvements in productivity and farmers’ incomes.
In addition, the project seeks to modernize the Department of Agriculture by strengthening its budgeting, data systems, and procurement processes.
NPO News Team | Philippine News Agency - PR
Mio Takada said the initiative is expected to deliver concrete benefits for both farmers and consumers by boosting productivity, increasing incomes, improving climate resilience, and reducing post-harvest losses, while also expanding agrifood exports.
The funding will be implemented through a Program-for-Results scheme, a financing approach that ties the release of funds to the achievement of specific development targets.
