For disaster resilience
The Asian Development Bank (ADB) has approved a new loan allowing the Philippines to quickly access emergency financing in the event of disasters triggered by natural hazards and public health emergencies.
In a statement, the Manila-based financial institution announced yesterday the approval of a $500 million policy-based loan to boost the Philippines’ disaster resilience.
“The Philippines has been hit by several major disasters in recent years, including Typhoon Haiyan (Yolanda) in 2013, the Taal Volcano eruption in January 2020, and the ongoing coronavirus disease (COVID-19) pandemic,” Ahmed M. Saeed, ADB vice-president said.
“This new contingent disaster financing instrument will help the government manage fiscal risks posed by those shocks and lessen the economic and social impacts on people’s livelihoods and the country’s economy,” he added.
Located in the Pacific Ring of Fire, the country is among the most disaster-prone countries in the world, including active volcanoes, frequent earthquakes, and an average of 20 typhoons a year causing floods and landslides.
Nearly three-fourths of the country’s population are also vulnerable to multiple natural hazards, and such disasters worsen poverty in typhoon-prone provinces along the country’s eastern seaboard.
Disasters cost the Philippines 0.7 percent to 1.0 percent of gross domestic product every year, including about P43.5 billion caused by earthquakes and around P133 billion from typhoons.
“The Disaster Resilience Improvement Program will support government policy reforms aimed at ensuring the government can quickly address the needs of vulnerable segments of the population following disasters,” Benita Ainabe, ADB financial sector specialist said.
“It will also strengthen the Philippines’ overall response to disasters and pandemics,” Ainabe added.
The program is supporting pending legislation in Congress to merge the functions of the National Disaster Risk Reduction and Management Council and the Office of Civil Defense under a new Department of Disaster Resilience to speed up the government’s disaster response.
It also supports reforms to make climate change adaptation and disaster risk reduction an integral part of comprehensive development plans of local government units.