PROJECT DESCRIPTION
The Development Policy Loan (DPL) is the second operation in a two-part program supporting the Philippines’ clean energy transition and water security under the Philippine Development Plan 2023–2028, building on earlier reforms to strengthen policy and institutional frameworks. It focuses on three pillars: scaling up clean energy through renewable energy market implementation, offshore wind auctions, electric vehicle incentives, and local energy efficiency measures; improving electricity market reliability, flexibility, and competition by strengthening reserve and ancillary service markets, addressing legacy costs, and enabling competitive procurement; and enhancing water governance by reforming local utilities, introducing cost-recovery tariffs, improving financing frameworks, and regulating bulk water supply. Supported by coordinated technical and financial assistance from development partners, the program aims to reduce fossil fuel dependence, lower electricity costs, expand climate-resilient water services, and promote inclusive development.
ADDITIONAL INFORMATION
The project is in the pipeline, with approval date of June 2026. It has a total commitment budget of USD 1,200 million, with USD 800 million contribution from the World Bank. For more information, please visit https//projects.worldbank.org/en/projects-operations/project-detail/P510184