The World Bank has approved a US$4.13 million grant for the Philippines to support projects aimed at strengthening micro, small and medium enterprises ( MSMEs ), improving agricultural finance, and expanding digital infrastructure.

The funding, provided through the World Bank’s Grant Facility for Project Preparation ( GFPP ), will finance technical studies and planning activities of three major government projects. The government is now finalizing the agreements

Thanking the World Bank for its continued support, Philippine finance secretary Frederick Go says in a statement: “These grants are vital for project development, and we will ensure they are finalized and signed without delay so the benefits reach our fellow countrymen as soon as possible.”

Under the grant, initiatives across key sectors will receive support, including the Department of Agriculture’s ( DA ) Improving MSME Access to Finance and Resilience to Climate Shocks Project, the Department of Trade and Industry’s ( DTI ) Philippines SME Compete Project, and the second phase of the Department of Information and Communications Technology’s ( DICT )  Philippines Digital Infrastructure Project Scale-up.

Accelerating project delivery

According to Go, the DA will receive US$1.21 million towards strengthening agricultural financing, as well as the modernization of insurance systems, and the improvement of rural development institutions. 

“[The grant will] increase rural incomes, create jobs, improve food security, and help communities better cope with climate-related shocks,” the statement says.

Another US$1.21 million is earmarked for a DTI project to enhance the competitiveness of MSMEs by helping them scale up, access wider markets, and generate more employment.

The DICT will get US$1.71 million to support preparations for expanding broadband connectivity in underserved areas, including Western Mindanao and the Bangsamoro Autonomous Region in Muslim Mindanao, in the southern part of the country..

The World Bank’s grant will cover feasibility studies, engineering designs, stakeholder consultations, and institutional capacity building, which in turn will help accelerate project delivery once implementation begins.

“These GFPP-supported projects advance the administration’s agenda of inclusive growth, climate resilience, and digital transformation – ensuring that strategic investments translate into real economic opportunities for Filipinos,” the finance department says.