The World Bank is lending USD232 million to support the second phase of a controversial road project in the Philippines. In the first phase, the agency dismissed two contracts worth USD33 million – more than a fifth of the USD150 million loan that it approved for that stage of the project – due to allegations of collusion and exorbitant pricing. In November 2007, the board at the bank decided to postpone further funding for the scheme until the government takes steps to ensure that the same problems do not occur again. Aside from the World Bank, the Philippine and Australian governments have committed to bear the costs of the project, which would amount to USD576 million.
Source: World Bank approves controversial Philippine loan (Reuters)