The Department of Finance (DOF) and the Agence Française de Développement (AFD) have signed a loan for disaster risk reduction at the local level, as well as disaster preparedness and response.
In a statement on Monday, Dec. 20, the DOF said that the €250 million policy-based loan, approximately P14 billion, is budget support in nature, under the Disaster Risk Reduction Enhancement at the Local Level Programme
It will support the Department of the Interior and Local Government (DILG) in the process of decentralizing the mandate and services for disaster risk reduction and climate change management to the Local Government Units (LGUs), the DOF said.
“It will also support ongoing reform programs throughout the country, taking into account the demands of the ‘new normal’ that seeks to address public health emergency concerns, as demonstrated by the COVID-19 experience,” the department said.
The loan seeks to support LGUs in a sustainable trajectory, as well as build the resilience of local economies and communities.
At the same time, it aims to limit any damage caused by disasters, reduce post-disaster emergency response time, and make the recovery period more effective, the DOF said.
“This will complement our move to shift our focus from theorizing about global warming to executing practical climate adaptation and mitigation projects on the ground," Finance Secretary Carlos G. Dominguez said.
"This financing agreement highlights the strong partnership between France and a high-risk country like the Philippines on mitigating the adverse impact of climate change, in support of our commitments on climate action under the Paris Agreement," he added.
Laurent Klein, AFD country director, said the loan is the result of a long-term partnership with the DILG through the Disaster Risk Management Institutional Strengthening (DRMIS) Project financed by the European Union through the AFD.
“It aims to further develop our cooperation on disaster risk management and climate change adaptation capacity for a period of three years,” Klein said.
French Ambassador Michèle Boccoz stressed that, “Through the AFD, France is truly keen to support the Government of the Philippines in implementing strategic reforms towards climate change mitigation and adaptation, including disaster risk governance at the local level.”
“I commend the Philippine Government for pushing the climate finance and climate justice agenda during the recent COP26, for joining the pledge to halt deforestation, and for pioneering the Energy Transition Mechanism proposed by the ADB,” Boccoz concluded.