PH to sign $1-b World Bank loan to modernize agri-fishery sector

The Department of Agriculture (DA) expects to sign a $1-billion loan agreement with the World Bank next month to fund a major reform initiative aimed at modernizing the country’s agri-fishery sector, a spokesperson said Thursday.

The Philippine Sustainable Agriculture Transformation (PSAT) Project is slated for signing in July 2025, potentially coinciding with President Ferdinand Marcos Jr.’s fourth State of the Nation Address, according to Arnel de Mesa, DA assistant secretary and spokesperson.

“This is budgetary support. The loan proceeds will go to the national treasury, and we’re hoping a portion will be allocated back to DA to support Secretary Tiu Laurel’s priority projects,” de Mesa said.

Priority projects include establishing a central food hub, expanding irrigation and developing greenhouse systems, cold storage facilities and infrastructure for key value chains like coconut, he said.

The PSAT project marks the Philippines’ first engagement under the World Bank’s Program-for-Results (PforR) financing framework. The five-year program aims to improve government spending, promote institutional capacity-building, and implement policy reforms supporting sustainable, climate-responsive agri-food systems.

The World Bank estimates PSAT’s total cost at $20 billion, or about P1.1 trillion, with the Philippine government contributing nearly $11.9 billion. A financing gap of about $2.5 million remains.

The Department of Finance (DOF) will formally secure the loan for the DA, with program implementation set to begin in August. The DA noted its continued close collaboration with the World Bank to ensure the timely rollout of PSAT.

“This project is designed not only to inject resources into agriculture but to also build a stronger, more resilient foundation for the sector in the years ahead,” de Mesa said.

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