Philippines secures $700-million World Bank loan for community resilience
By Derco Rosal
Washington-based World Bank will be providing $700 million, or approximately ₱35 billion, worth of funding for the Philippines Community Resilience Project, which aims to strengthen resilience in vulnerable and poor areas.
According to the multilateral lender, the project aims to cover 500 vulnerable rural municipalities, chosen based on factors such as high poverty levels, exposure to climate and natural hazards, presence of indigenous communities, and high malnutrition rates.
In total, it will cover 177 municipalities where indigenous peoples make up at least 10 percent of the population, benefiting around 33 percent of the country’s total indigenous population.
For the funding mix, the World Bank will provide 80 percent of the total project cost of $874.4 million. Its funding will be in the form of an International Bank for Reconstruction and Development loan.
Meanwhile, the national government will shoulder the remaining 20 percent or $174.4 million.
Pagkilos, the local term for the project, will work with communities to identify climate and disaster risks and create resilience plans. Selected projects under these plans—especially those promoting durable infrastructure and sustainable livelihoods—will receive funding for implementation.
“Approximately 18 million households in the Philippines are expected to become less vulnerable to natural disasters in the coming years, due to enhanced community-led planning and infrastructure investments,” the World Bank said in a statement on Friday, Aug. 1.
Resilience projects eligible for funding may include measures such as flood and drought control, landslide and slope protection, storm surge barriers, windbreakers, and upgrades to existing infrastructure to make them more resistant to extreme weather.
Additionally, the project will also fund nature-based solutions for ecosystem conservation, such as erosion control, water conservation, agroforestry, and the protection of community forests, wetlands, marshes, and waterways.
“Investing in community-level resilience is crucial for a country like the Philippines that is highly vulnerable to climate change and natural disasters, as it safeguards lives, protects economic stability, and empowers local communities to recover swiftly and sustainably,” said Ditte Marie Fallesen, World Bank senior social development specialist.
Pagkilos will offer technical assistance to community volunteer groups in implementing and managing sub-projects. It will also provide training and capacity building for local governments and residents to improve climate planning and response.
“By empowering local communities to take the lead in building resilience against climate change and disaster risks, the Philippines is not only addressing immediate environmental challenges but also fostering a culture of proactive engagement and resilience,” said Zafer Mustafaoğlu, Division Director for the Philippines, Malaysia, and Brunei.
According to the World Bank, the Philippines ranked first in the World Risk Index as one of the most disaster-prone countries due to its high exposure and vulnerability to recurring extreme events.
Key natural hazards include typhoons, floods, droughts, earthquakes, and volcanic eruptions. In 2023, 2.1 million out of 2.6 million disaster-related displacements were caused by major climate-driven events such as typhoons and floods.