THE World Bank (WB) is preparing to approve about $500 million worth of loans to the Philippines in the second quarter, funding projects that will boost the government’s ability to respond to natural calamities and mitigate disaster risk.
According to World Bank documents, the multilateral lender is poised to lend the Philippines $500 million under the Third Disaster Risk Management (DRM) Development Policy Loan (DPL), for release in a single tranche.
The World Bank’s Board has set an estimated approval date of May 21, 2020.
The World Bank said the Philippine government asked the bank for a disbursing Development Policy Loan (DPL), instead of the initial plan for a DRM DPL with Catastrophic Deferred Drawdown option, “following a highly unusual series of disaster events in late 2019 and early 2020.”
“Through this, the government will be able to strengthen institutional capacity to implement the reforms at the national and local levels. This operation provides timely engagement as the government is in the process of enhancing the institutional framework for DRM through the creation of a new department for disaster risk management and climate resilience,” according to the document.
The Department of Finance will be the implementing agency for the facility.
The World Bank noted that the Philippines’ vulnerabiity to natural calamities poses a risk to its poverty reduction initiatives and could negatively affected economic growth and debt stainability.
It said by enhancing the disaster preparedness of local governments through improved planning, financing and implementation programs, the government is expected to speed up its response and recovery efforts following a natural disaster.
“The government has shown strong leadership in pursuing the DRM agenda and the country has already achieved substantial results, with the support from the two DRM DPLs with a CAT-DDO 1 and 2 (Catastrophe- Deferred Drawdown Option Program). — Beatrice M. Laforga