The World Bank has approved two loans to support the recovery of the Philippine and Indian economies and promote renewable energy and climate resilience initiatives.
In the Philippines, the World Bank has approved a $750 million loan to support the country's economic recovery. The loan will be used to implement reforms that aim to increase investment in public service sectors, attract private investment in public infrastructure, promote renewable energy, protect the environment, and improve climate resilience. The reforms supported by this lending program are expected to encourage private investment, innovation, and sustained growth. Additionally, the loan will support reforms to enhance plastic waste reduction, recovery, and recycling, promote green transportation, and encourage the production and consumption of environmentally friendly goods and services through public procurement [57f6761e].
Meanwhile, in India, the World Bank has approved a $1.5 billion loan to support the country's hydrogen initiatives. The funding will be used to boost the production of green hydrogen and electrolyzers, critical technology needed for green hydrogen production. The loan will also support reforms to promote renewable energy penetration and incentivize battery energy storage solutions. The operation is expected to result in the production of at least 450,000 metric tons of green hydrogen and 1,500 MW of electrolyzers per year from FY25/26 onwards. It will also support reductions in emissions by 50 million tons per year and the development of a national carbon credit market. The financing includes a $1.46 billion loan from the International Bank for Reconstruction and Development (IBRD) and a $31.5 million credit from the International Development Association (IDA) [a6cfafd9].
These loans come as part of the World Bank's ongoing efforts to support countries in their recovery from the economic impacts of the COVID-19 pandemic. The Philippine and Indian governments will utilize the loans to implement key reforms and investments that will contribute to their sustainable and inclusive recoveries. The loans will also help both countries in their transition to more sustainable and resilient economies by promoting renewable energy and climate resilience initiatives. The World Bank's support will play a crucial role in accelerating the economic recoveries of both countries and building a more sustainable future [57f6761e] [a6cfafd9].