THE World Bank has committed a $100-million fast-track loan to support the Philippines in its coronavirus disease 2019 (COVID-19) response, the Department of Finance (DOF) said in a statement yesterday.
The funds, under the World Bank’s Fast Track COVID-19 Facility, can be made available to the Department of Health (DOH) in a matter of weeks, DOF said.
The World Bank’s aid will enable DOH to procure personal protective equipment (PPE) for health care workers, along with testing and laboratory materials, quarantine areas, isolation rooms and other essential equipment to contain the spread of the virus in the country.
The DOF, led by Mark Joven, finance undersecretary, met with Achim Fock, World Bank acting country director for Brunei, Malaysia, Philippines and Thailand, last week to outline possible financing options to help the government address the threat of COVID-19.
In a letter addressed to Francisco Duque, health secretary, Fock assured the DOH that the World Bank “would take every step to make procurement as fast as possible, fully appreciating that rapid response in health emergencies is key to limiting the spread of COVID-19 and providing care to those affected.”
“We appreciate your strong leadership during the COVID-19 outbreak and offer our assistance to your department in the response,” Fock said in his letter to Duque dated March 17.
Fock said the World Bank office in Manila is ready with a team of procurement specialists who would be on hand to assist DOH in acquiring the materials and equipment it needs to fight COVID-19.
“We recognize that some goods and equipment are currently not available and stand ready to support you in sourcing them as quickly as possible,” Fock said in his letter.
According to Fock, examples of costs that could be paid for under the facility include “PPE, testing materials and equipment, subnational lab equipment, isolation rooms, and quarantine areas.”
The World Bank announced early this month it was making available an initial package of up to $12 billion in immediate support to assist countries coping with the health and economic impacts of the COVID-19 global outbreak.
According to the World Bank website, the Fast-Track facility “will help developing countries strengthen health systems, including better access to health services to safeguard people from the epidemic, strengthen disease surveillance, bolster public health interventions, and work with the private sector to reduce the impact on economies.”
The COVID-19 Fast Track Facility will be financed as follows: $2.7 billion from the International Bank for Reconstruction and Development (IBRD), $1.3 billion from the International Development Association, $6 billion from the International Finance Corp. (IFC), complemented by reprioritization of $2 billion of the Bank Group’s existing portfolio.
The Philippines is eligible for $100 million at IBRD regular terms, with a waiver of the first year of commitment fees.
As an IBRD member-country, the Philippines is also eligible to receive further financing assistance from IBRD within its normal exposure limits.
The World Bank reported yesterday that IFC will increase its COVID-19 related financing availability by $8 billion as part of the now $14 billion package, up from an earlier $6 billion, to support private companies and their employees hurt by the economic downturn caused by the spread of COVID-19.
The bulk of the IFC financing will go to client financial institutions to enable them to continue to offer trade financing, working-capital support, and medium-term financing to private companies struggling with disruptions in supply chains.
“It’s essential that we shorten the time to recovery. This package provides urgent support to businesses and their workers to reduce the financial and economic impact of the spread of COVID-19,” David Malpass, president of the World Bank Group, said in a s statement yesterday.
“The World Bank Group is committed to a fast, flexible response based on the needs of developing countries. Support operations are already underway, and the expanded funding tools approved today will help sustain economies, companies, and jobs,” he added.
