WB approves PHL request to cancel remaining portion of agriculture loan

THE Philippines’ request to cancel the unused portion of a loan for its flagship agriculture development program has been approved by the World Bank (WB), noting that the project is currently sufficiently funded.

“The restructuring proposes the cancellation of the unwithdrawn loan proceeds amounting to $32.43 million,” according to a restructuring document uploaded to the bank’s website on Feb. 3.

The Philippine Rural Development Project aims to improve farmer and fisherfolk access to markets and increase income from selected agri-fishery value chains.

The Department of Agriculture implements the program. Over the four-year period the program’s overall outcome has been rated as “satisfactory.”

According to the report, 96.02% of the $814.19-million loan from the International Bank for Reconstruction and Development has been disbursed for the project, leaving $32.43 million undrawn.

“Commitment fees would continue to accrue during the four-month grace period following the project’s closing date unless the cancellation was formally processed,” the World Bank said.

The Department of Finance filed its restructuring request on Aug. 27, following the project’s close on July 31, prompting the lender to grant a retroactive extension of the closing date to Feb. 27, 2026.

“Retroactive extension of the loan closing date is required to temporarily reopen portal access and allow the Task Team to process the requested cancellation of the unwithdrawn Loan Proceeds,” the World Bank said.

It also noted that the project has a “good fiduciary standing,” with no overdue Interim Financial Reports or Audit Reports. — Aubrey Rose A. Inosante