New Delhi: The Asian Development Bank (ADB) has approved a $500-million loan to the Philippines that will serve as quick financing in case of disasters triggered by natural hazards or health emergencies. The loan is a policy-based loan and part of the Second Disaster Resilience Improvement Program, which has an option to replenish the facility twice, upon approval by the ADB board.
Loans can be renewed if unused amounts remain after five years.
“The Philippines is one of the fastest growing economies in Southeast Asia but is at high risk for earthquakes, volcanic eruptions, typhoons, rising sea levels, and flooding,” ADB Country Director for the Philippines Pavit Ramachandran said in a statement on Tuesday. “With this program, we aim to help boost the country’s capacity for disaster risk reduction and management (DRRM) nationally and locally, including state-owned and controlled corporations; strengthen DRRM policies and frameworks; and attain long-term resilience to lessen the impact of disasters, especially to the most vulnerable sectors.”
The World Risk Report 2024 ranked the Philippines as the highest-risk economy among 193 economies. The Philippines’ land area is 60 percent exposed to multiple hazards, and three-fourths of its population is susceptible to these hazards.
The country experiences up to 150 earthquakes of at least magnitude four and at least 20 typhoons annually.
The new program will harmonize DRRM planning processes at the national, provincial, and city levels. It will also integrate DRRM in national public financial management reforms. The program builds on the reforms from the first Disaster Resilience Improvement Program. It will also incorporate gender equity, disability, and social inclusion into DRRM plans; enhance state-owned or controlled corporations’ disaster response; and provide additional sources of risk financing, including a voluntary city parametric disaster insurance scheme that offers faster payouts for earthquake, typhoon, and other disaster damages.