World Bank lends $1B for health care, Mindanao highways

MANILA, Philippines — The World Bank (WB) approved two loans for the Philippines with a combined amount of nearly $1 billion to finance projects aimed at improving transport connectivity and health services in Mindanao and “low-capacity” provinces across the country.

At least 19 million Filipinos would benefit from the two project loans cumulatively worth $950.54 million, the WB said in a statement on Thursday.

The new financing—which will carry a concessional rate and better terms for the borrower compared with those that come with commercial loans—will add to the government’s debt stock that was pegged at a record high of P16.31 trillion as of January this year.

The first loan amounting to $454.94 million will bankroll the Mindanao Transport Connectivity Improvement Project. The undertaking involves the rehabilitation and upgrading of the 428.2-kilometer main road corridor linking Cagayan de Oro, Davao and General Santos, which host key ports and airports in Mindanao.

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This road network comprises four highways, traversing six provinces, 14 municipalities, seven cities and 168 barangays (villages).

The Washington-based lender said the project would benefit at least 1.16 million residents, who can expect better rural roads that can reduce transportation costs and product losses for poor farmers.

“Sustained growth and poverty reduction in Mindanao requires making agriculture more productive, particularly the smallholder farmers,” said Pratap Tvgssshrk, senior transport specialist at the WB.

“Connecting rural and remote areas to urban centers where there is demand for farm produce is a key intervention to support growth in the agricultural sector,” Tvgssshrk added.

Climate-resilient health care

The second financing from the bank is a $495.6-million loan to fund the Philippines Health System Resilience Project, which will support government efforts to enhance climate-resilient health-care networks, improve workforce and governance and promote high-quality health services at the provincial level.

The project will also invest in disease surveillance, public health laboratories and emergency response systems.

The undertaking will prioritize 17 provinces with low health-care access capacity, benefiting 17.9 million people, including those in geographically isolated and disadvantaged areas. Eleven of these provinces are in Mindanao.

“The health sector in the Philippines significantly depends on the efforts of local government units (LGUs) to provide essential services,” said Wei Han, senior economist at WB.

“This project is vital as it aims to empower these low-capacity LGUs to deliver high-quality health services, thereby driving socioeconomic progress through improved health outcomes for Filipinos,” Han added.

(2025/03/07-02:26)