Philippines secures $800M World Bank financing to support jobs, business reforms

The Philippines has secured $800 million in policy financing from the World Bank to support reforms aimed at strengthening fiscal management, boosting business growth and preparing Filipino workers for higher-quality jobs, the Department of Finance (DOF) said.

In a recent statement, the DOF said the financing—called the Growth and Jobs Development Policy Loan (G&J DPL1) and backed by the World Bank’s International Bank for Reconstruction and Development (IBRD)—provides budget support tied to reforms designed to promote economic expansion, private investment and employment generation.

It is also the first World Bank financing secured under Finance Secretary Frederick D. Go, who said the facility reflects confidence in the Philippines’ economic direction and its commitment to fiscal discipline.

“This financing from the World Bank is a strong vote of confidence in the Philippines’ growth path,” Go said. “Part of what makes this financing so important is our firm commitment to fiscal discipline, ensuring that every peso is spent wisely to create jobs, support businesses, and strengthen public services for the benefit of all Filipinos.”

The policy loan supports reforms under three main pillars.

The first focuses on strengthening fiscal management, including improving revenue mobilization and ensuring that public funds are directed toward priority investments such as infrastructure and human capital.

The second pillar aims to expand private sector opportunities by improving the business environment and encouraging innovation, allowing companies to scale up operations and create more jobs.

The third pillar targets labor force development, strengthening education and technical and vocational training programs to address job-skills mismatches and ensure workers are prepared for higher-value employment.

World Bank Division Director for the Philippines, Malaysia and Brunei Zafer Mustafaoğlu said the initiative aims to help translate strong economic growth into better job opportunities.

“By strengthening fiscal foundations, improving the business climate, and investing in human capital, this effort will unlock private investment and equip people with the skills they need to find jobs and thrive,” he said.

Complementing the policy loan, the Philippines also secured $4.13 million in grants from the World Bank’s Grant Facility for Project Preparation (GFPP) to help accelerate the development of priority government projects.

The grants will fund preparatory work such as feasibility studies, engineering designs and institutional capacity building—critical steps that help agencies avoid delays and ensure projects are technically and financially sound before implementation.

Three projects have been approved for grant support.

The Department of Agriculture will receive $1.21 million for the Improving MSME Access to Finance and Resilience to Climate Shocks Project, which aims to strengthen agricultural financing systems and help rural communities better cope with climate-related risks.

Another $1.21 million grant will support the Department of Trade and Industry’s SME COMPETE Project, designed to enhance the competitiveness of small and medium enterprises and help them access wider markets.

Meanwhile, the Department of Information and Communications Technology will receive $1.71 million to prepare the Philippines Digital Infrastructure Project Scale-up (Phase II), which aims to expand broadband connectivity in underserved areas including Western Mindanao and the Bangsamoro Autonomous Region in Muslim Mindanao.

Go said the grants will help ensure that projects move swiftly from planning to implementation so their benefits can reach communities sooner.