THE ASIAN Development Bank (ADB) approved a $500-million policy-based loan for the Philippines to boost disaster resilience and response.
In a statement, the ADB said the Second Disaster Resilience Improvement Program is a multiyear contingent disaster financing program.
The loan will provide the Philippines with quick access to financing during natural disasters and health emergencies.
The ADB said there is an option to replenish the loan facility twice, upon approval by the ADB Board. The loan can be renewed if there are unutilized amounts after the first five-year period.
“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.
The Philippines ranked the highest in disaster risk out of 193 economies, according to the World Risk Report of the World Economic Forum. The Philippines, which faces an average of 20 typhoons, remained the most disaster-prone country for a 16th straight year.
“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,” he said.
The program would also boost DRRM policies and frameworks as well as long-term resilience in minimizing the impact of disasters.
This new loan supports previous programs such as the Integrated Flood Resilience and Adaptation Project (Phase 1) and the Climate Change Action Plan Subprograms 1 and 2. — Aubrey Rose A. Inosante
