PH secures $6.35 billion in loans for 2025 development projects

The Philippine government is set to borrow $6.35 billion (approximately PHP 369.66 billion) in 2025 from the Asian Development Bank (ADB) and the World Bank to support transformative development initiatives. This financing will back projects aimed at improving infrastructure, boosting agriculture, enhancing public services, and fostering sustainable growth.

According to official documents, the Marcos administration has aligned these borrowing plans with the country’s development goals under the updated Maritime Industry Development Plan 2028 and other national priorities.

ADB Contributions

The ADB is expected to provide $2.64 billion (PHP 153.03 billion) through concessional loans and grants. Key projects include the $1-billion Metro Rail Transit Line 4 (MRT4), a 13.4-kilometer elevated railway designed to alleviate eastern Metro Manila traffic. Once operational, the MRT4 will cut travel time between Taytay and Ortigas to under 30 minutes, promoting sustainable urban growth.

Other ADB-supported initiatives include:

• National Total Electrification Support Program
• Geothermal Resource De-Risking Facility
• Energy Efficiency in Public Buildings Program
• Mindanao Agro-Enterprise Development Project
• REFUEL Project to reduce food insecurity
• Mindanao Irrigation Development Project Phase I
• Baguio Resilient City Tourism Project

These programs collectively aim to improve sanitation access, expand renewable energy, strengthen food security, and uplift farmer incomes.

World Bank Commitments

The World Bank is set to approve $3.7 billion (PHP 215.3 billion) in funding for nine projects focused on community resilience, education, energy transition, health systems, and infrastructure.

One flagship initiative is the $1-billion Philippines Sustainable Agriculture Transformation project, which aims to promote climate-resilient agricultural systems, boost productivity, and enhance resource efficiency. Other projects include rural road access improvements, modernization of civil services, and water supply enhancements.

Reducing Foreign Borrowing

Department of Finance (DOF) Secretary Ralph G. Recto emphasized the government’s plan to reduce foreign borrowings to 10% of total financing by 2028, focusing on domestic sources to mitigate foreign exchange risks.

This strategy builds on the DOF’s performance in 2024, during which it secured $5.67 billion (PHP 333.42 billion) for infrastructure, health, transport, and agriculture projects. Recto reiterated the government’s commitment to responsibly managing public funds and securing cost-effective agreements with international partners.

Economic Impact

The infusion of funds from ADB and the World Bank is expected to boost the Philippine economy through job creation, enhanced trade capabilities, and long-term infrastructure improvements. Initiatives such as MRT4 and sustainable agriculture programs demonstrate the government’s focus on inclusive growth and environmental sustainability, reflecting a strategic approach to national development.

With this robust funding pipeline, the Philippines aims to drive significant progress in key sectors while ensuring the responsible management of its financial resources.