Press Release
March 26, 2009

RP remains WB's development partner - Zubiri

Senate Majority Leader Juan Miguel Zubiri today welcomed the decision of the World Bank (WB) to grant $700 million to $1 billion loan to the Philippines over the next three years.

The financial package World Bank has agreed to lend to the Philippines under its new Country Assistance Strategy (CAS) will finance programs on poverty alleviation and good governance. It will cover new and existing projects related to transport, rural power, agriculture and agribusiness development, urban renewal, disaster-risk management, improvement of public health and education systems, as well as public and private partnerships in water projects.

"It's a positive note and it should be welcomed. It means the World Bank is still looking at the Philippines as a partner in its development program," Zubiri said..

"It's good that 'that World Bank knows of our government's effort to reduce if not totally eradicate corruption not only in the lower level but at the national level as well."

In January this year, the World Bank froze the awarding of $33 million that would have funded Phase 1 of the Philippines' National Roads Improvement and Management Program (NRIMP1). It also disqualified seven local and international firms bidding on the contracts after a "major cartel" was uncovered.

The proposed Country Assistance Strategy, for July 2009 to June 2012, is awaiting the World Bank's Board of Executive Directors meeting where it will be discussed for approval this coming April.

Zubiri said the World Bank's decision to restore its support to the Philippines is an indication that they recognize the government's effort to eliminate irregularities in public and private transactions.

"World Bank won't let Philippines borrow money if they don't see that we are doing something to address the corruption problem in the country. I believe our various departments have done something substantial to restore the trust and confidence of international agencies like the World Bank," he said.

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