Philippines Second Sustainable Recovery Development Policy Loan

active

This program document proposes the second operation in a programmatic series of two Development Policy Loans (DPLs) supporting a sustainable economic recovery, in the amount of US 750 million dollars equivalent. The Program Development Objectives (PDOs) and pillars of the operation are to support the Government of the Philippines (GOP) to: 1) accelerate the economic recovery and boost long-term growth; and 2) protect the environment and improve climate resilience. Pillar 1 supports reforms to attract private investment in infrastructure and renewable energy (RE) and to mobilize and scale up sustainable finance. Pillar 2 supports reforms to improve plastic waste management, promote green transport and green procurement, and strengthen the resilience of the agriculture sector. The first operation supported foundational reforms and general implementation frameworks. The second operation builds on these foundations, focusing on the implementation of these reforms. The DPL series supports government reform efforts in accelerating the economic recovery, boosting long-term growth, and protecting the environment and improving climate resilience. Pillar 1 supports reforms to attract private investment in public infrastructure, especially in domestic shipping, and in RE, especially in offshore wind (OSW), increase investment in infrastructure through public-private partnerships (PPPs), and mobilize sustainable finance. These reforms will facilitate the transition to a low-carbon economy while achieving greater energy security and lower energy costs. Pillar 2 supports reforms to enhance plastic waste management, promote the adoption of electric vehicles (EVs), mainstream green procurement, and protect the national budget and farmers from climate-related risks in the agriculture sector. Collectively, these reforms would contribute to climate change mitigation and pollution management and improve its resilience to climate risks. The reforms are in line with the priorities outlined in the Philippine Development Plan (PDP) 2023–2028, which calls for fundamental transformations across economic, institutional, environmental, and social sectors.