The Philippine government is set to borrow USD800 million (over PHP45 billion) from the World Bank in early 2026 to fund reforms targeting renewable energy expansion, electricity market strengthening, and improved water management nationwide. The financing will be provided under the Philippines Second Energy Transition and Climate Resilience Development Policy Loan (DPL), with board approval scheduled for January 26, 2026.
The program will support initiatives such as scaling up clean energy technologies, enhancing electricity market security and competition, and improving water governance across multiple sectors. Implementation will be led by the Department of Finance (DOF) in coordination with the Department of Energy (DOE), Department of Environment and Natural Resources (DENR), Department of the Interior and Local Government (DILG), Department of Trade and Industry (DTI), and the Energy Regulatory Commission (ERC). Additional support will come from agencies including the Department of Budget and Management (DBM), Department of Public Works and Highways (DPWH), and the Department of Economy, Planning, and Development (DEPDev).
This second phase DPL follows the First Energy Transition and Climate Resilience DPL, also an USD800 million program approved in March 2025. The new loan aims to deepen institutional reforms by promoting offshore wind auctions, wider electric vehicle adoption, enhanced energy efficiency, competitive procurement, resolution of stranded costs, professionalization of local utilities, and enforcement of cost-recovery tariffs. It also seeks to attract private-sector clean-tech investments and provide support for underperforming local government units.
The initiative is part of the World Bank Group’s broader commitment of up to USD23 billion in financing for the Philippines from mid-2025 to mid-2031, including USD18 billion via the International Bank for Reconstruction and Development (IBRD).