The World Bank has approved $950 million worth of loans for two projects in the Philippines to improve transport connectivity and health services in Mindanao and low-capacity provinces.
In a statement on Thursday, the World Bank said at least 19 million Filipinos are expected to benefit from the two new projects approved by the World Bank’s Board of Executive Directors.
One of the project loans is $454.94 million for the Mindanao Transport Connectivity Improvement Project; the other is $495.6 million for the Philippines Health System Resilience Project.
“The World Bank is committed to supporting the Philippines in its journey towards inclusive growth and its aspiration to become an upper middle-income country,” Zafer Mustafaoğlu, World Bank country director for the Philippines, Malaysia, and Brunei Darussalam, said.
“Initiatives that enhance transport connectivity and boost health services in low-capacity regions, particularly in Mindanao, can address regional disparities while enhancing the quality of life for many Filipinos,” Mustafaoğlu said.
The Mindanao Transport Connectivity Improvement Project will benefit at least 1.16 million residents along a key road corridor in Cagayan de Oro, Davao, and General Santos by providing improved access to sustainable transport infrastructure and services, the World Bank said.
“Sustained growth and poverty reduction in Mindanao requires making agriculture more productive, particularly the smallholder farmers,” Pratap Tvgssshrk, World Bank senior transport specialist, said.
“Connecting rural and remote areas to urban centers where there is demand for farm produce is a key intervention to support growth in the agricultural sector,” Tvgssshrk added.
The transport project will finance the rehabilitation and upgrading of the 428.2-kilometer main road corridor linking three major cities.
This road network comprises four highways—Sayre Highway, Bukidnon-Davao Highway, Digos-Makar Highway, and Davao-Cotabato Road—traversing six provinces, 14 municipalities, seven cities and 168 barangays.
The project will support the upgrading of three local roads connecting to the Cagayan de Oro – Davao – General Santos corridor, with a total length of 129.86 kilometers.
The Philippines Health System Resilience Project will support government efforts to enhance climate-resilient healthcare networks, improve workforce and governance, and promote high-quality health services at the provincial level, the World Bank said.
It will also invest in disease surveillance, public health laboratories, and emergency response systems.
This project will prioritize 17 provinces with low healthcare access capacity, benefiting 17.9 million people, including those in geographically isolated and disadvantaged areas.
The agency said 11 of these provinces are in Mindanao.
“The health sector in the Philippines significantly depends on the efforts of local government units (LGUs) to provide essential services,” Wei Han, World Bank senior economist, said.
However, many LGUs face challenges due to limited resources and capacity. This project is vital as it aims to empower these low-capacity LGUs to deliver high-quality health services, thereby driving socioeconomic progress through improved health outcomes for Filipinos,” he said. ***
