ADB OKs $500-M loan for PH disaster resilience
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The Asian Development Bank (ADB) has approved another loan for the Philippines, this time a $500-million policy-based agreement for financing in case of disasters caused by natural hazards and health-related emergencies.
According to the ADB, the financing will assist reforms to raise resilience and enable the country to respond to disasters and recover in a timely manner as well as minimize the impact on the economy and lives and livelihoods of Filipinos.
It seeks to harmonize disaster risk reduction and management (DRRM) planning processes at the national, provincial, and city levels and integrate these into national public financial management reforms.
It also aims to boost gender equality, disability, and social inclusion in DRRM plans and improve the services delivered by state-owned and controlled corporations when it comes to disaster response. It will also provide an additional stream of risk financing that offers faster payouts for damages.
The loan will be under the Second Disaster Resilience Improvement Program, which will be a multiyear financing program with an option to replenish the facility twice upon approval of the multilateral lender. Renewals will also be allowed should there be unused funds in the initial 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.
“With this program, we aim to help boost the country’s capacity for disaster risk reduction and management 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,” he added.
The ADB last November approved a $500-million policy-based loan under the Climate Change Action Program Subprogram 2, which seeks to support the Philippines' implementation efforts to stabilize the world’s climate under the Paris Agreement. — VBL, GMA Integrated News