The Philippine government is set to borrow USD 800 million (over PHP 45 billion) from the World Bank in early 2026 to fund reforms that will accelerate renewable energy adoption, strengthen the electricity market, and improve water management nationwide.

The financing, part of the Philippines Second Energy Transition and Climate Resilience Development Policy Loan (DPL), is scheduled for board approval by the World Bank on January 26, 2026, according to a Sept. 23 project information document.

The World Bank said the program “will support [Philippine government] reforms to scale up adoption of clean energy technologies; increase the security, flexibility, and competition of electricity markets; and improve water management across water uses.”

The initiative will be implemented by multiple agencies, including the Department of Energy (DOE), Department of Environment and Natural Resources (DENR), Department of the Interior and Local Government (DILG), Department of Trade and Industry (DTI), and the Energy Regulatory Commission (ERC). Other departments such as Finance (DOF), Budget and Management (DBM), Public Works and Highways (DPWH), and Economy, Planning, and Development (DEPDev) will also play key roles, with the DOF overseeing coordination and monitoring.

This second-phase loan builds on the Philippines First Energy Transition and Climate Resilience DPL, another USD $800-million program approved by the World Bank in March this year. The World Bank described the new DPL as deepening “the policy and institutional framework needed to scale up renewable energy (RE), improve electricity market efficiency, and strengthen water governance and service delivery.”

The loan program will focus on accelerating renewable energy adoption, enhancing power sector competitiveness, and improving water security. This includes offshore wind auctions, expanding electric vehicle use, enhancing efficiency measures, attracting private clean tech investments, improving reserve and ancillary markets, resolving stranded costs, advancing competitive procurement, professionalizing local utilities, enforcing cost-recovery tariffs, and expanding support for underperforming local government units.

The Second Energy Transition and Climate Resilience DPL forms part of the World Bank Group’s broader commitment of up to USD 23 billion in loans and financing for the Philippines from mid-2025 to mid-2031. This includes USD 18 billion through the IBRD, the World Bank’s lending arm for developing nations, under a six-year country partnership framework.

How will this new World Bank loan reshape the Philippines’ energy landscape and accelerate the clean energy transition? Share your insights and perspectives.

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.