A World Bank-funded project aimed at preparing Metro Manila for the so-called "The Big One" earthquake -- foreseen to shake the region in the near future -- is progressing despite the lack of budget from the national government.
In a Nov. 3 implementation status and results report, the Washington-based multilateral lender said the Philippines Seismic Risk Reduction and Resilience Project has been "moderately satisfactory" in terms of overall implementation, although its overall risk rating was downgraded to "substantial" from "moderate" previously.
This project, for which the Philippines borrowed $300 million (about P14.6 billion) from the World Bank in 2021, "made significant progress over the last four months despite the persistent lack of budget cover," the lender said.
A check with documents on the proposed 2025 national budget showed this project being implemented by the Department of Public Works and Highways (DPWH) has been set aside with P2.798 billion from loan proceeds for next year.
However, there is no government counterpart financing for the project in 2025, which means it may form part of so-called unprogrammed appropriations not in the regular budget items.
Budget documents further showed there were no Philippine government allocations for this project in 2023 and 2024.
The government is supposed to shell out P461.16 million in counterpart funds for this over P15-billion project, which is scheduled to end in 2026.
Halfway-through its five-year implementation period, only $54.73-million worth or 18.24 percent of total loan proceeds have been disbursed, leaving the majority of the World Bank's investment project financing unspent so far.
Despite these budget challenges, the World Bank said "most of the emergency response equipment for transport and mobility restoration have been procured and delivered."
"The equipment, which will be strategically positioned in and at the peripheries of Metro Manila will increase the capacity of the DPWH to restore transport mobility by removing debris to clear major roads in the event of disasters that are frequent but less severe as well as low-frequency, high-impact disasters in Metro Manila and nearby areas," the lender noted.
It helps that consultancy services for detailed engineering design, which will incorporate multi-hazard measures and functional improvements, as well as procurement for the detailed engineering design and construction supervision consultant are on-track, the World Bank added.
"These two consultancies are vital inputs to the seismic retrofitting of the 425 public buildings, which aims to strengthen the buildings through structural upgrades to reduce the potential impact of earthquakes and other natural hazards," it explained.
"The project is also preparing for the procurement of consultancies for the implementation of the capacity-building activities to enhance capability of DPWH staff to prepare and respond to disasters and other emergencies and to carry out its mandate as a lead agency for engineering, reconstruction, and rehabilitation under the Metro Manila Earthquake Contingency Plan (Oplan Metro Yakal Plus)," according to the World Bank.
When this project was approved, the DPWH wanted not only to fortify the safety and seismic resilience of more than 400 government buildings like health centers and school buildings in Metro Manila by retrofitting them, but also enhance the agency's own capacity to prepare for and respond to earthquake emergencies.
Earlier World Bank estimates had shown that "The Big One" -- a strong, magnitude-7.2 earthquake feared may happen along the West Valley Fault -- could inflict about 48,000 fatalities and $48 billion in economic losses.