MANILA — The World Bank has approved a USD 1 billion loan to strengthen agriculture productivity and climate resilience in the Philippines through the Philippines Sustainable Agricultural Transformation Project (PSAT).

The Washington-based lender said its Board of Executive Directors formally approved the funding on Saturday. PSAT aims to support sector-wide reforms, modernize agricultural practices, enhance food and nutrition security, and generate jobs for at least five million Filipino farmers nationwide.

“This is a transformative investment in Philippine agriculture,” said Zafer Mustafaoğlu. “By putting in place the right policies, systems, and partnerships, these projects will make agriculture more productive, competitive, and climate smart. Farmers will be better equipped to earn more, withstand climate shocks, and bring safer, more affordable food to Filipino households.”

PSAT will introduce climate-smart practices, including improved seed and nutrient management, water-saving techniques, greenhouse-gas reduction, and post-harvest loss mitigation. It will also support crop diversification, expand agrifood exports through accessible high-value crops and export certification laboratories, improve market access, and modernize logistics.

The project will implement a new digital voucher system to deliver farm inputs faster and with greater transparency, linking public spending to measurable gains in yields and incomes. It will also strengthen the Department of Agriculture’s budgeting, data management, and procurement processes.

“This new initiative aims to deliver tangible benefits for farmers and consumers alike. Farmers will see higher incomes through stronger productivity, better seeds, mechanization, efficient fertilizer use, diversification, improved climate resilience, reduced post-harvest losses, and growth in agrifood exports. Better use of public resources will further amplify these gains,” said Mio Takada.

The World Bank noted that the funding is structured as a Program-for-Results operation, linking disbursements directly to the achievement of specific, pre-agreed results under government-led development programs.