Government secures $700-M loan to boost disaster resilience in vulnerable areas

The Philippines will repay a new $700-million (about %u20B139 billion) loan from the World Bank until 2053, following the signing of a financing deal to support a nationwide community resilience initiative.

Finance Secretary Ralph G. Recto signed the agreement on behalf of the government on Sept. 8, while Zafer Mustafao%u011Flu, division director for the Philippines, Malaysia, and Brunei, signed for the Washington-based lender on Aug. 12. The agreement is set to take effect three months after both sides’ signing.

The loan, which forms the bulk of the $874.35-million (%u20B149-billion) Philippines Community Resilience Project–Pagkilos, will close on Dec. 31, 2030, with repayments scheduled every June 1 and Dec. 1 starting in 2036. The Philippine government will contribute $174.35 million (about %u20B110 billion) to complete project financing.

Implemented by the Department of Social Welfare and Development (DSWD), the Pagkilos project aims to strengthen participatory resilience planning in climate-vulnerable communities and increase access to resilient investments. It consists of four components: community grants, institutional support for local resilience, monitoring and evaluation, and a contingent emergency response facility.

The World Bank said the project is expected to benefit around 18 million households, particularly in 500 municipalities across 49 provinces most at risk of natural disasters. The initiative will also focus on vulnerable populations, including indigenous peoples, women, and beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps). A total of 177 municipalities with significant indigenous populations will be targeted for support.

“Pagkilos will provide technical support and training to community groups and local government units to strengthen their ability to plan and manage projects that address climate challenges,” the World Bank said in a statement.

The project adopts a community-driven approach, encouraging citizen engagement in planning and implementation. It builds on past efforts to use local knowledge in designing resilience measures while promoting inclusivity and equity.

The loan is part of a broader lending pipeline between the Philippines and the World Bank Group (WBG). For fiscal year 2026, which began in July, the World Bank expects to approve at least seven more loans for the country, including $600 million for education reform, $800 million for growth and jobs development, and a $1-billion program for sustainable agriculture.

Over the longer term, the Philippines is projected to access up to $23 billion in financing from the WBG between 2025 and 2031, coinciding with its anticipated transition to upper-middle-income status. Of this, around $7.85 billion will come from the International Bank for Reconstruction and Development, the WBG’s lending arm for developing economies, within the next two years.