An ambitious plan by Gloria Macapagal Arroyo, Philippine president, to boost infrastructure spending over the next three years has been thrown into disarray by a World Bank decision to defer approval of a $232m (€156m, £113m) loan because of alleged corruption.

The bank's directors have delayed making a decision on the proposed loan until after the completion of an internal investigation into reports of bid rigging and overpricing in World Bank-funded road projects, according to officials of the international financial institution.