The World Bank has approved an USD800 million Development Policy Loan (DPL) to support the Philippines in accelerating its clean energy transition and improving water sector governance. The initiative aims to increase renewable energy’s share from 30 per cent in 2023 to 42 per cent by 2027, support 1,000 MW of offshore wind capacity, and implement energy efficiency measures. Broader reforms will also enable more consumers to choose their electricity suppliers, enhance competition, and improve grid reliability.
The policy loan marks a first for the Philippine water sector, introducing measures to boost coordination between national and local governments, improve access to water and sanitation, and enhance the financial sustainability of public water service providers. The support is intended to build resilience, reduce dependence on imported energy, and enable inclusive, sustainable growth across sectors.