THE WORLD BANK (WB) on Wednesday said it approved an $800-million financing package to support the adoption of clean energy technology and the enhancement of water management in the Philippines.
“Focusing on renewable energy sources and using energy more efficiently can help the country reduce electricity costs, improve energy security, and cut down on pollution,” Zafer Mustafaoğlu, World Bank division director for the Philippines, Malaysia, and Brunei, said in a statement on Wednesday.
“Using more affordable renewable energy in the energy and transport sectors is crucial for the Philippines to build a strong economy,” he added.
This First Energy Transition and Climate Resilience Development Policy Loan aims to bolster efforts to scale up clean energy technologies, enhance the security and flexibility of electricity markets, and improve water management.
The bank said the project will increase the share of renewable energy in installed generation capacity from 30% in 2023 to 42% by 2027.
It will also fund the procurement of 1,000 megawatts of new offshore wind capacity and implement energy efficiency measures saving five gigawatt hours annually.
“By strengthening RE markets, and unlocking private sector investment, the program will contribute to scalable, transformative impact beyond 2030, placing the Philippines on a sustainable trajectory,” the World Bank said.
Additionally, the project will introduce policy reforms to improve governance and cohesiveness in the water sector, aiming to enhance water resources management and water supply and sanitation services.
“These reforms in the water sector are expected to increase access to safely managed water supply and sanitation services; raise funding and financing for water and sanitation projects; and improve the financial sustainability of local government-run water service providers,” World Bank Senior Water Supply and Sanitation Specialist Maria Fiorella Fabella said.
Ms. Fabella noted that such support is a first for the Philippine water sector, and will promote more effective coordination, planning and management across sectors and governments. — Aubrey Rose A. Inosante