The World Bank is again supporting the government’s disaster and climate-related preparedness with a fresh $500 million credit line as a standby funding when needed.
The Philippine government can tap or draw from the credit line when disaster strikes to help in its “capacity to manage disaster and climate risks, including those in the education, human settlements, and health systems.”
In a statement Friday, Nov. 17, World Bank's Country Director Ndiamé Diop for Brunei, Malaysia, Philippines, and Thailand, said: "The real benefit of this support is its ability to rapidly deliver crucial services – such as healthcare, shelter, and food – to those most impacted by disasters or climate events.”
He added that the standby support is “about making sure the people who have the least are taken care of and can bounce back immediately after these disaster events."
In the same statement, the World Bank said it has been assisting the country to improve the handling of disasters and climate threats – “with a particular focus on protecting schools, health facilities, and human settlements, through a new line of credit.”
The fresh loan, called formally as “Philippines Disaster Risk Management and Climate Development Policy Loan with a Catastrophe Deferred Drawdown Option” has been approved by the World Bank’s Board of Executive Directors on Friday.
The loan “sets aside US$500 million that the government can quickly draw upon when major natural disasters or health crises hit, minimizing the impact on the economy and long-term development.”
The World Bank said the funds can disburse when the Philippines declares a State of Calamity in response to a natural disaster or public health emergency.
This emergency state will automatically trigger the release of the calamity loan in line with the Philippine Disaster Risk Reduction and Management Act of 2010 or the DRRM Act.
The World Bank said the full amount will be available for three years. It will allow the government immediate access to funds when they need it to “better manage the cost of shocks and protect the Philippine population.”
The funding support is a revolving credit line which means the three-year drawdown period may be renewed up to four times for a total maximum period of 15 years.
Meanwhile, World Bank Senior Disaster Risk Management Specialist Lesley Y. Cordero said extreme events in the country “frequently cause significant damage to infrastructure, communities, and people's livelihoods.”
"The reforms this financial instrument supports are key in making sure places where people learn, live, and take care of their health are built with climate and disaster challenges in mind. This way, services will not be interrupted when natural disasters strike, and this is particularly important for those who are already vulnerable,” she said.
According to the World Bank, around 60 percent of the country’s total land area and at least 74 percent of Filipinos are “vulnerable to multiple hazards” which includes typhoons, landslides, floods, storm surges, droughts, volcanic eruptions, and earthquakes.
It noted in the statement that natural disasters “regularly damage infrastructure, disrupt the delivery of essential education and health services, and destroy homes and personal belongings, making life harder for many families and pushing some into poverty.”
About 78 percent of public schools in the country, and around 96 percent of students are “exposed and vulnerable” to the identified multiple hazards, said the World Bank.
“Between 2021 and 2023, around 4,000 schools were damaged due to various disasters, resulting in the disruption of learning continuity for two million children,” it also said.
In addition, Diop said an important part of the support “is that it helps ensure the government has the resources to restore or rebuild damaged schools following a disaster (and) this makes sure that children can continue their education without significant interruptions.”
The World Bank emphasized that the “financing isn't just about responding to disasters; it's also about preparing for them in advance to mitigate their impact.”
“The reforms implemented as a part of this financing will help make schools more disaster-proof, help communities plan safer spaces and green areas, and strengthen health facilities to withstand future disasters and health emergencies,” said the multilateral funding agency.