Agriculture Secretary Francisco P. Tiu Laurel Jr. recently met with officials from the World Bank to review the progress and key aspects of their collaborative efforts aimed at promoting sustainable agriculture in the Philippines.
During the meeting on February 10, World Bank Country Director Zafer Mustafaoglu reaffirmed the bank’s commitment to signing the USD1-billion Philippine Sustainable Agricultural Transformation (PSAT) loan program. The signing, planned for July, coincides with President Ferdinand Marcos Jr.’s fourth State of the Nation Address.
The five-year PSAT initiative, set to launch in August, seeks to strengthen the country’s agri-fishery sector by providing targeted support to agri-food systems. This includes climate-responsive strategies, policy reforms, diversification, and enhanced fiscal management. As the Philippines’ first project under the World Bank’s Program-for-Results (PforR) financing framework, PSAT aims to improve the efficiency of government spending while ensuring sustainable outcomes by building institutional capacity and strengthening governance.
Secretary Tiu Laurel and country director Mustafaoglu also discussed the Technical Assistance for Sustainable Agricultural Transformation (TASAT), a USD15-million grant funded by the United Kingdom. TASAT will support the Department of Agriculture in implementing the PSAT by enhancing internal audits, evaluating resource use alternatives, assessing sectoral transformation, and expanding the availability of improved planting materials for high-value crops.
This supplementary funding, processed through the Philippine government system, will be endorsed by the Department of Finance and the National Economic and Development Authority through the Development Budget Coordination Committee.
Secretary Tiu Laurel assured continued collaboration with the World Bank to ensure the successful and timely execution of PSAT, contributing to the country’s agricultural development and food security goals.
“This multiyear loan from the World Bank will provide us with the critical resources needed to advance the government’s food security agenda and promote sustainable agriculture—key drivers of development in the countryside that will uplift the lives of millions who depend on farming and fishery,” said Secretary Tiu Laurel, expressing his heartfelt gratitude to the World Bank for their unwavering support through the loan program. ###
