ADB approves $500M loan to strengthen PH disaster resilience

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The Asian Development Bank (ADB) said it has approved a $500 million policy-based loan that will give the Philippines immediate access to financing in the event of natural or health-related disasters.

The Manila-based regional development bank said the funding will support the country’s reforms to boost resilience and allow swift response and recovery efforts, reducing the economic impact of such disasters.

The Second Disaster Resilience Improvement Program is a multiyear contingent disaster financing program with an option to replenish the facility twice, upon approval by the ADB Board.

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Loan renewals are allowed if there are unused amounts after the initial five-year period.

“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,” ADB Country Director for the Philippines Pavit Ramachandran said in a statement.

The new program seeks to harmonize DRRM planning processes at the national, provincial, and city levels and integrate DRRM in national public financial management (PFM) reforms. 

It also seeks to incorporate gender equity, disability, and social inclusion in DRRM plans; enhance the service delivery of state-owned or controlled corporations for disaster response; and provide additional sources of risk financing, including a voluntary city parametric disaster insurance scheme that offers faster payouts for damages from earthquakes, typhoons, and other disasters.  

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