The Philippine government and the World Bank have entered into a US$600mn (approximately P33.3 billion) loan agreement to support the modernisation of the agriculture and fisheries sector
The loan will fund the Philippine Rural Development Project Scale-Up, which aims to transform agriculture into a modern and industrialised sector by enhancing public infrastructure and strengthening the commodity value chain. The agreement, signed on 7 July 2023, involves a government contribution of US$218mn for the IS$818mn (P45.01 billion) project.
This initiative by the Department of Agriculture addresses the persistent challenges faced by the sector and rural communities, aiming to enhance market access for farmers and fisherfolk, increase income from selected agricultural and fishery value chains, and improve efficiency in the food supply chain.
The project will span 16 regions, comprising 82 provinces, with a focus on areas where approximately half of the Philippines' 109.03 million population resides. It will involve direct investments in rural infrastructure and enterprise sub-projects, benefiting around 450,000 farmers and fisherfolk and generating approximately 42,000 new jobs.
The Department of Agriculture aims to transition the project into a regular locally-funded programme after completion to ensure its continuity and sustainability.
