Another $1-billion loan has been added to the World Bank’s financing pipeline for the Philippines, aimed at strengthening government disaster preparedness and response amid increasing climate as well as natural hazard risks.

The World Bank disclosed in a July 22 program information document (PID) that the Philippines Sixth Disaster Risk Management Development Policy Loan (DPL) with a Catastrophe Deferred Drawdown Option (CAT-DDO) is scheduled for approval by its Washington-based board on Dec. 16, 2026.

A World Bank DPL provides direct budget support to governments in exchange for implementing agreed policy as well as institutional reforms aimed at promoting economic growth and resilience. Meanwhile, a CAT-DDO is a World Bank contingent credit line that provides governments with immediate access to emergency financing following a natural disaster or other eligible crisis.

In the Philippines, previous World Bank CAT-DDOs have been drawn following a presidential declaration of a state of calamity and a formal drawdown request.

To be implemented by the Department of Finance (DOF), the forthcoming World Bank development policy financing (DPF) is also aimed at improving the resilience of critical infrastructure as well as enhancing disaster risk financing and budgeting in the country.

“Underpinned by robust analytical work and building on the gains and lessons from the previous five CAT-DDOs which deepened and expanded critical DRM [disaster risk management] policy reforms, the program also seeks to address select remaining gaps to sustain and deepen progress in disaster preparedness, risk reduction, and climate and disaster resilience,” the World Bank said.

According to the World Bank, specific reforms under the DPF include improving hazard monitoring and early warning systems, strengthening disaster-resilient standards for energy and telecommunications infrastructure, institutionalizing anticipatory action and emergency procurement measures, as well as reinforcing the government’s disaster financing framework.

These reforms are expected to help improve scientific monitoring of natural hazards, increase the resilience of critical infrastructure, enhance preparedness for a major earthquake in Metro Manila, and enable faster mobilization of public resources during disasters, according to the World Bank.

The World Bank cited that the Philippines remains among the world’s most disaster-prone countries, facing around 20 typhoons and 100 to 150 perceptible or felt earthquakes annually. Also, about 60 percent of the country’s land area and 74 percent of its population are exposed to multiple natural hazards, while a 2025 household survey showed that 90.1 percent of Filipinos experienced at least one natural hazard during the previous three years, the lender noted.

World Bank data showed that the upcoming $1-billion loan with CAT-DDO would be the largest such facility extended to the Philippines, compared with earlier $500-million loans with CAT-DDOs.

It would also become the third World Bank financing package worth at least $1 billion for the Philippines, after the $1-billion Philippines Sustainable Agriculture Transformation (PSAT) Program and the record $1.02-billion Second Energy Transition and Climate Resilience DPL, both approved this year.