The World Bank (WB) reaffirmed its commitment to signing the $1-billion Philippine Sustainable Agricultural Transformation (PSAT) loan program to support sustainable agriculture in the country.
Department of Agriculture Secretary Francisco Tiu Laurel Jr. said that in a meeting on Feb. 10, 2025, World Bank country director Zafer Mustafaoglu confirmed that the agreement would be signed in July 2025, in time for President Ferdinand Marcos Jr.’s fourth State of the Nation Address.
The five-year PSAT program, set for launching in August, will focus on strengthening agri-food systems through climate-responsive policies, diversification and improved fiscal management.
As the first Philippine project under the World Bank’s Program-for-Results (PforR) framework, PSAT is designed to enhance government spending efficiency while ensuring long-term sustainability.
A $15-million technical assistance grant from the United Kingdom will further support the initiative by improving governance, resource allocation and the availability of high-value crops.
Tiu Laurel welcomed the World Bank’s commitment, emphasizing its role in advancing food security and sustainable agriculture.
“This multiyear loan will provide the critical resources needed to uplift farmers and fishers, drive rural development and secure the country’s food future,” he said.
The signing of the PSAT will be a milestone in the government’s efforts to modernize agriculture, with local funding support from the Department of Finance and the National Economic and Development Authority.
