World Bank readies $600M loan to boost jobs, skills in PH

The World Bank is preparing a $600-million loan aimed at supporting the Philippines' economic growth while enhancing the skills and employability of Filipino workers, according to a recent program information document released by the multilateral lender.

Slated for board approval on December 11, 2025, the Philippines Growth and Jobs Development Policy Loan (DPL) is designed to assist the government in strengthening fiscal management, improving the business climate, and building a more competitive labor force.

The loan will be coursed through the Department of Finance (DOF), with implementation support from a wide range of national agencies, including the Department of Education (DepEd), Technical Education and Skills Development Authority (TESDA), Department of Trade and Industry (DTI), Anti-Red Tape Authority (ARTA), and Bangko Sentral ng Pilipinas (BSP), among others.

In its disclosure, the World Bank noted that the DPL series will focus on reforms that not only raise government revenues but also streamline business processes and enhance human capital development. These include measures to improve tax collection, update property valuations at the local government level, and shorten procurement timelines for public agencies.

Other key reforms under the loan program aim to simplify registration for foreign firms, increase the proportion of shares traded on the stock market, and expand the allowable tax-deductible expenses for businesses.

In the area of education and workforce development, the loan is expected to support initiatives that boost reading and literacy outcomes among students, increase the number of early-career workers—particularly women—who obtain National Certificate III credentials, and expand enterprise-based training under the country’s technical-vocational education programs.

The financing is part of the broader Country Partnership Framework (CPF) between the Philippines and the World Bank Group, covering fiscal years 2026 to 2031. Under the CPF, the Philippines is expected to receive between $22 billion and $23 billion in development financing, reinforcing the country’s goal of reaching upper-middle-income status.

For fiscal year 2025 alone, the Philippines is projected to secure $7.85 billion in loans from the World Bank, including three major projects pending approval later this month: a $4-million rural roads initiative, a $1-billion agriculture transformation program, and a $240.6-million water and sanitation project.

The upcoming $600-million loan, along with a separate $600-million education program scheduled for approval in September, underscores the World Bank’s commitment to advancing inclusive growth and sustainable development in the Philippines through investments in human capital and institutional reform.