The World Bank extends a loan of $ 900 million to help in the recovery from the pandemic and boost the competitiveness of the PH

MANILA – The World Bank said Thursday its board approved a $ 900 million credit line for the Philippines to support two projects aimed at increasing competitiveness and accelerating the country’s recovery from the pandemic and natural disasters.

The multilateral lender approved $ 600 million to promote competitiveness in small and medium-sized enterprises (SMEs) and strengthen resilience to natural disasters.

It set aside $ 300 million to address poverty in poor rural communities through basic social services under the Kalahi-CIDSS poverty alleviation program of the Department of Social Welfare and Development and the Department of Labor and Employment.

Ndiamé Diop, World Bank country director for the Philippines, said the loans were aimed at improving and accelerating digital infrastructure and adoption to boost businesses and create more jobs.

He added that it will provide accessible funds for basic facilities and a rapid emergency response for the most vulnerable areas in times of disaster.

It can also be harnessed as a war chest to fight COVID-19 by building more isolation facilities and health stations, and improving water and sanitation, the World Bank said.

The World Bank previously provided $ 600 million to help DSWD continue its Pilipino Pantawid Pamilyang (4P) Program to protect vulnerable families amid the pandemic.

The World Bank Group said it has set aside $ 160 billion through June 2021 to support the poor and vulnerable, and to fuel the recovery of more than 100 economies.

This includes funding sources of $ 50 billion for grants and loans and the $ 12 billion that developing countries can leverage to purchase COVID-19 vaccines.