The World Bank and the Philippine government are moving forward with a landmark agreement that could reshape the country’s agriculture sector. At a recent meeting, agriculture secretary Francisco P. Tiu Laurel Jr. and World Bank country director Zafer Mustafaoglu reviewed the progress of the Philippine Sustainable Agricultural Transformation (PSAT) loan program, with the goal of finalizing the USD1 billion loan agreement in July.
This deal, expected to be signed in tandem with President Ferdinand Marcos Jr.’s state of the nation address, marks a significant milestone for the country’s agriculture sector. The five-year PSAT initiative, set to launch in August, is poised to support the country’s agri-fishery sector by implementing climate-responsive strategies, policy reforms, and fiscal management improvements. The loan will also aid in diversifying agriculture and strengthening governance within the sector.
The PSAT program will be the first project under the World Bank’s Program-for-Results (PforR) financing framework, which focuses on improving the efficiency of government spending while ensuring sustainable outcomes. The loan’s structure emphasizes building institutional capacity, making it a key financial tool for achieving long-term agricultural sustainability and food security.
In addition to the PSAT loan, the UK-funded USD15 million technical assistance for sustainable agricultural transformation (TASAT) will provide further support by helping the Department of Agriculture enhance internal audits and assess resource use alternatives, among other key initiatives.
This combined financial support is expected to significantly contribute to the Philippine government’s food security goals, improving conditions for millions of Filipinos reliant on agriculture. Secretary Laurel expressed his gratitude for the World Bank’s partnership, noting that the funds will play a crucial role in advancing the country’s agricultural development and uplifting rural communities.
