MANILA - THE World Bank said on Thursday it had approved a US$70 million (S$102 million) farming loan for the Philippines aimed at boosting output in the world's largest rice importer.

The 15-year 'adaptable programme loan' will go towards expanding irrigation in the country to increase crop yield, the Bank's country office said in a statement.

The World Bank loan is the first of three tranches totalling US$290.36 million to help pay for the US$413.59 million project. The rest will be paid for by the government.

The terms of the loan were not disclosed.

Most Filipino rice farmers tend small plots and rely on rainfall, leaving the land idle in the dry season and therefore curtailing their productivity, according to agricultural experts here.

The mountainous country has largely failed to produce enough of the cereal and has been one of the world's largest importers.

The project 'will contribute significantly to the government's priority objective of increasing agricultural productivity and enhancing food security', Health Secretary Arthur Yap said in the statement. -- AFP