WB digital infra loan stalled by late arrival of PHL funding

PHILIPPINE plans to build out its public broadband infrastructure network aided by a $287.24-million World Bank (WB) loan were delayed for nearly a year while the government rounded up the funding for its share of the project cost, the bank said.

“The pace of implementation has been affected by the extended process of obtaining budget cover,” the bank said in its implementation status report dated Sept. 22.

The $287.24-million loan for the Philippine Digital Infrastructure Project has yet to be disbursed after the project was approved in October 2024.

“Preparations for key project initiatives are well advanced and are ready to move forward,” the bank said, noting that budget cover was put place on Sept. 15.

Multilateral lenders require their borrowers to partly fund joint projects to make the host government less likely to abandon projects.

In its website, the World Bank said the project aims to improve climate-resilient, secure, and inclusive broadband connectivity. Its components include the backbone network, the middle-mile network, the access network or last mile, and project management support. 

The first three components of the project will invest in the government fiber optic backbone and the middle mile segment at the national level, as well as last-mile connectivity in Mindanao.

The project’s overall risk rating remains substantial but the progress towards achievement of the project development objective and overall implementation progress were downgraded to moderately satisfactory from satisfactory.

The project is being implemented by the Department of Information and Communications Technology.

Budget Secretary Amenah F. Pangandaman has said that foreign-assisted projects funding will be covered in the budget this year and in the proposed 2026 National Expenditure Program. — Aubrey Rose A. Inosante