PH ready to tap World Bank's $500-M standby credit line amid Carina, Habagat

The Philippine government, through the Department of Finance (DOF), is ready to tap a $500-million worth of standby credit line extended by the World Bank to support the country's disaster relief and rehabilitation efforts amid the devastation caused by Super Typhoon Carina and southwest monsoon or Habagat.

In a statement on Wednesday, Finance Secretary Ralph Recto said the $500-million credit "will be immediately withdrawn and released once the President declares a state of calamity."

"This will allow us to rapidly deliver critical services like healthcare, shelter, and food to those affected by typhoon Carina as well as fund post-disaster emergency response, recovery, and reconstruction efforts," the Finance chief said.

The World Bank's Philippines Disaster Risk Management (DRM) and Climate Development Policy Loan (DPL) with a Catastrophe-Deferred Drawdown Option (CAT-DDO5) provides the Philippine government with immediate access to funds in order to manage risks arising from climate change, natural disasters, and disease outbreaks, according to the DOF.

It said that a presidential declaration of a state of calamity or a public health emergency is required to trigger the release of the funds under the standby credit facility.

So far, President Ferdinand "Bongbong" Marcos Jr. said Wednesday that the decision to declare a state of calamity in Metro Manila cities rests upon local chief executives because "they know best what they need."

Shortly after, the Metro Manila Council (MCC) declared a state of calamity in the National Capital Region amid the massive flooding caused by Habagat and Super Typhoon Carina.

The CAT-DDO5, meanwhile, forms part of the Philippines' Disaster Risk Financing Insurance (DRFI) strategy, which aims to maintain sound fiscal health at the national level, develop sustainable financing mechanisms for local government units (LGUs), and reduce the impact on the poorest and most vulnerable, according to the DOF. — VDV, GMA Integrated News