World Bank to approve second USD 800M loan for PH

The Philippine government is preparing to secure USD 800 million (PHP 45.0 billion) from the World Bank in early 2026 to accelerate renewable energy adoption, strengthen electricity markets, and improve water management nationwide.

The financing, known as the Philippines Second Energy Transition and Climate Resilience Development Policy Loan (DPL), is scheduled for board approval on January 26, 2026, according to a Sept. 23 project information document.

The World Bank said the program “will support [Philippine government] reforms to scale up adoption of clean energy technologies; increase the security, flexibility, and competition of electricity markets; and improve water management across water uses.”

The initiative will be carried out by several agencies, including the Department of Energy (DOE), Department of Environment and Natural Resources (DENR), Department of the Interior and Local Government (DILG), Department of Trade and Industry (DTI), and the Energy Regulatory Commission (ERC).

Other departments such as Finance (DOF), Budget and Management (DBM), Public Works and Highways (DPWH), and Economy, Planning, and Development (DEPDev) will also play key roles, with the DOF responsible for coordination and monitoring.

This second-phase loan follows the Philippines First Energy Transition and Climate Resilience DPL, another USD 800 million program approved by the World Bank in March 2025.

The World Bank described the new DPL as deepening “the policy and institutional framework needed to scale up renewable energy (RE), improve electricity market efficiency, and strengthen water governance and service delivery.”

The loan program will support offshore wind auctions, expand electric vehicle use, strengthen efficiency measures, attract private clean tech investments, improve reserve and ancillary markets, and resolve stranded costs.

It will also advance competitive procurement, professionalize local utilities, enforce cost-recovery tariffs, and expand financial support for underperforming local government units.

The Second Energy Transition and Climate Resilience DPL forms part of the World Bank Group’s broader commitment of up to USD 23 billion in financing for the Philippines from mid-2025 to mid-2031.

This commitment includes USD 18 billion through the International Bank for Reconstruction and Development (IBRD), the World Bank’s lending arm for developing nations, under a six-year country partnership framework.