PH secures $1.02-B WB package for energy, water

The World Bank (WB) approved this week a $1.02-billion financing for the Philippines to expand access to affordable, reliable electricity and strengthen water security for millions of Filipinos.

The financing consists of a $1-billion loan from the International Bank for Reconstruction and Development (IBRD) and a $20-million performance-based grant from the Livable Planet Fund.

It is among the largest IBRD operations the World Bank Group has approved in support of the Philippines’ development agenda, the Washington-based lender said.

The loan will support a package of landmark economic actions to scale up the country’s domestic energy capacity while mobilizing private investment.

These include the full operationalization of the Renewable Energy Market integration of electric vehicle charging into utility planning, and the launch of the Philippines’ first-ever offshore wind auction, which targets 3.3 gigawatts of contracted capacity by 2030.

This is expected to mobilize approximately $7 billion in private investment, creating more jobs in the sector, the banks said.

By 2027, the share of installed renewable energy capacity is targeted to rise to 42 percent from 30 percent, helping diversify the country’s energy mix and reduce its exposure to imported fossil fuel price shocks.

Beyond energy, the package also tackles long-standing challenges in the water sector, where more than 1,600 local government units are responsible for providing services but often lack the financing and institutional capacity to do so reliably.

The WB said the loan supports cost-recovery tariff frameworks, a unified financing structure that prioritizes poor and climate-vulnerable communities, and bulk water pricing regulations—scaling the number of local water providers with sustainable business plans from 10 to 100 by 2027.

“The Philippines has everything it needs to power itself at lower cost—wind along its coasts, sunlight year-round, and geothermal energy beneath its soil,” said Zafer Mustafaoğlu, WB’s division director for the Philippines.

“This operation helps turn those natural advantages into reliable, affordable electricity for Filipino families and businesses,” he added. “At a time when global energy markets are deeply volatile, this [loan] helps the Philippines take control of its own energy future, support growth, and create jobs.”