The Bureau of the Treasury (BTr) will be filing a claim under the National Indemnity Insurance Program (NIIP) due to typhoon “Carina” for the damage to several public schools estimated to amount to at least P308.5 billion.
This developed as the Department of Budget and Management (DBM) said it is ready to mobilize its quick response and calamity funds to support efforts to aid those who were affected by Typhoon Carina and the southwest monsoon.
The BTr said in a statement it is actively coordinating with the Department of Education (DepEd) and the Government Service Insurance System (GSIS) for the filing of insurance claims under the NIIP.
Once a payout is confirmed, the DepEd will be able to utilize the funds for the repair and reconstruction of about 45 affected public schools across eight regions.
The NIIP, which commenced at the start of this year provides comprehensive cover to government assets against fire, lightning, typhoons, floods, earthquakes and volcanic eruptions. For its pilot run, the BTr secured coverage for 132,862 school buildings nationwide, with a total insured value of P843.11 billion.
“The implementation of the program underscores the commitment of the Bureau and the Department of Finance (DOF) to ensure the nation’s financial resilience against disasters.
We are actively coordinating with both DepEd and GSIS to ensure the timely assessment and payout of the program,” national treasurer Sharon Almanza said.
The program is part of the country’s Disaster Risk Finance strategy, which aims to protect the government’s fiscal health, provide immediate liquidity post-disaster and reduce the impact of disasters on the most vulnerable.
Other instruments under this strategy are the Quick Response Fund, the Local and National Disaster Risk Reduction and Management Fund and the Disaster Stand-by Loan facilities secured by the DOF.
“Protecting our national assets is crucial for ensuring the economic security of our people.
Damaged school buildings pose a significant threat to this security, as they are the very places where we nurture the potential of our nation’s greatest treasure–our students,” finance secretary Ralph Recto said.
“Poor school facilities negatively impact both teachers and students, leading to lower human capital development, reduced economic productivity and persistent poverty. Thus, we must prioritize investing in resilient school buildings to secure a better future for our children and our country,” he added.
In a statement on Wednesday, Budget Secretary Amenah Pangandaman said identified frontline government agencies may mobilize their Quick Response Fund (QRF) allocated in their respective budgets,” Budget Secretary said.
The QRF is a built-in budgetary allocation that represents pre-disaster or standby fund for agencies to immediately assist areas stricken by catastrophes and crises.
The following agencies have built-in QRFs in their respective budgets as specified in the 2024 General Appropriations Act (GAA): a total of P1 billion has been allocated to the Department of Agriculture, P3 billion for the Department of Education, P500 million for the Department of Health, P50 million for the Bureau of Fire Protection, P50 million for the Philippine National Police, P500 million for the Office of Civil Defense, P1 billion for the Department of Public Works and Highways, P1.75 billion for the Department of Social Welfare and Development and P75 million for the Philippine Coast Guard.
These agencies may request for replenishment from the DBM once they are able to utilize at least half of their QRF.
Further, after the typhoon, if necessary, agencies may tap into the available National Disaster Risk Reduction and Management Fund (NDRRMF) under the 2024 GAA upon completion of damage assessment and recommendation by the National Disaster Risk Reduction and Management Council (NDRRMC) and following the approval of the President.
The NDRRMF may be used for aid, relief and rehabilitation services to communities/areas; as well as, repair, rehabilitation and reconstruction works in connection with the occurrence of natural or human induced calamities in the current or two preceding years.
Per latest data, the government still has some P11.123 billion in calamity fund out of the P22.736 billion allocation this year.
This includes the P2.236 billion carry over from last year’s budget that can be used for various disaster relief operations until the end of 2024.
From January to July 2024, calamity fund releases amounted to about P11.612 billion.
