“Neither a borrower nor a lender be, for loan oft loses both itself and friend.” — William Shakespeare
On March 31, 2025, I learned that the lending institution, the World Bank, has favored the Marcos administration in securing an additional loan of US$800 million (approximately P45.8 billion) to scale up the adoption of clean energy technologies and improve water management across various uses.
According to the World Bank press statement dated March 31, 2025, this Development Policy Operation (DPL) is a rapidly disbursing financial support mechanism provided by the World Bank to help member countries address development financing needs through a program of policy and institutional actions.
The World Bank stated that it aims to promote sustainable growth, reduce poverty, and enhance the well-being and incomes of the poor, consistent with the country’s development goals.
I had been monitoring the regular press briefings in Malacañang, but I have never heard the presidential spokesperson mention this loan.
Any foreign loan secured by the national government is of vital public importance, as it will ultimately be repaid by future generations of Filipinos—those newly born and those yet to be born.
The loan, which focuses on renewable energy and clean water initiatives, was approved by the World Bank’s Board of Executive Directors.
Zafer Mustafaoğlu, World Bank Division Director for the Philippines, Malaysia, and Brunei, said that more affordable renewable energy in the energy and transport sectors is crucial for the Philippines to build a strong economy.
“Focusing on renewable energy sources and using energy more efficiently can help the country reduce electricity costs, improve energy security, and cut down on pollution,” Mustafaoğlu said.
In the island province of Palawan, where incessant and pestering brownouts severely affect local businesses due to poor energy services, the residents—both innocent and unaware—will still be obligated to help repay the loan through their taxes.
I just do not know how the province of Palawan and the city of Puerto Princesa will benefit from this loan package to address their power woes.
For so long, the World Bank has recognized the Philippines as one of the most dynamic economies in the East Asia and Pacific region, but has also pointed out that it faces considerable risks and challenges to long-term growth and prosperity, including increasing dependence on imported energy, the high cost of electricity, and natural disasters.
When the World Bank “approved an operation” to support the Marcos administration’s policy reform efforts, it encouraged investment in the energy transition by focusing on local renewable energy (RE) sources, energy efficiency (EE), and other clean energy alternatives to help lower electricity generation costs while improving energy security.
This loan package includes a provision to expand the proportion of consumers who can choose their electricity supplier. It also supports improving the framework for competitive procurement of renewable energy, which is expected to help lower electricity prices by increasing competition in the sector.
Feng Liu, World Bank Senior Energy Specialist and Task Team Leader for the operation, stated:
“To accelerate energy transition and keep electricity affordable for all Filipinos, the Philippines needs reforms to ensure the achievement of the government’s renewable energy and energy efficiency targets, improve grid capacity and flexibility, and enhance competition in electricity markets.”
“These reforms can help lower power supply costs and improve the reliability and resilience of the power system, thereby making electricity more affordable and reliable for Filipino households and businesses,” Liu added.
With this, I hope the players in Palawan’s energy sector understand what is meant by reforms to lower supply costs and improve the reliability and resilience of the power system.
Dubbed by the World Bank as the First Energy Transition and Climate Resilience Development Policy Loan, the initiative will support actions that accelerate energy transition and increase climate resilience in the Philippines.
It is expected to raise the share of renewable energy in installed generation capacity from 30 percent in 2023 to 42 percent by 2027.
The program also supports the procurement of 1,000 megawatts of new offshore wind capacity and the implementation of energy efficiency measures to save 5 GWh annually.
Electrification of public sector vehicles and improved electricity market reforms are also expected to help decarbonize the national grid.
By strengthening RE markets, and unlocking private sector investments, the program will contribute to scalable, transformative impact beyond 2030, placing the Philippines on a sustainable trajectory, the World Bank said in a statement.
On the water aspect, the operation will also help improve governance and cohesiveness in the water sector by introducing policy reforms for water resources management and water supply and sanitation by promoting better coordination between national and local governments.
Maria Fiorella Fabella, World Bank Senior Water Supply and Sanitation Specialist said that: “These reforms in the water sector are expected to increase access to safely managed water supply and sanitation services; raise funding and financing for water and sanitation projects; and improve the financial sustainability of local government-run water service providers.”
“Ultimately, the DPL, a first for the Philippine water sector, is a move toward more effective coordination, planning and management across sectors and levels of government,” Fabella said.
So, if we are going to look intently on the words of the World Bank top honchos, the loan was perfectly applicable in Palawan to address the pestering power woes and clean water problems in the municipalities.
But because it is a loan obtained by the elitist central government of Manila, the tendency is that Palawan political leaders will have to beg in order to get something from the loan, or just do nothing, as usual.
And no one among the pretentious leaders of Palawan and Puerto Princesa city had ever mentioned about the pressing issues of incessant woes of power problems and clean water, both in the island and mainland municipalities.
As of this writing, according to the Bureau of Treasury, the Marcos administration has so far incurred P1.82 trillion in debt since it assumed office, largely due to a high interest rate environment, pushing the country’s outstanding obligation to an all-time high of P14.62 trillion in 2023.
Today, the Philippines has been reported as the World Bank’s fifth-largest borrower for two consecutive years under President Ferdinand R. Marcos Jr.’s administration.
The Philippines has borrowed a total of $2.35 billion from the World Bank in fiscal year 2024.
Records showed that loans obtained have been allocated for various sectors, including disaster risk management, digital transformation, infrastructure development, and climate resilience.
