Philippines Bolsters Disaster Risk Management with $500 Million World Bank Loan
The Philippine government has secured a $500 million loan from the World Bank to strengthen its disaster risk management capabilities and recover from natural disasters and disease outbreaks. The loan is part of the Fourth Disaster Risk Management Development Policy Loan with Catastrophe-Deferred Drawdown Option (CAT-DDO 4), approved on November 17, 2021.
Vulnerability to Natural Disasters
The Philippines is one of the countries most vulnerable to natural disasters, with nearly three quarters of its population exposed to multiple hazards such as typhoons, earthquakes, floods, and landslides. In the past three decades, natural disasters have affected over 120 million people and resulted in more than 33,000 deaths.
Loan Terms
The CAT-DDO 4 loan allows the Philippines to access funds quickly following a disaster declaration, providing immediate liquidity to help rebuild damaged infrastructure and re-establish critical government services. The loan is available for a period of three years and can be renewed for up to 15 years.
Technical Assistance
In addition to providing financial support, the World Bank has also provided technical assistance to strengthen the country’s disaster risk management policy reforms and develop institutional capacity to implement them at the national and local levels. The “Ready to Rebuild (R2R)” training program provides manuals, guidance, and training sessions to assist local government units in developing local disaster rehabilitation and recovery plans.
Key Components of the Training Program
- Online training sessions for representatives of local governments across the Philippines
- Use of GeoRiskPH integrated multi-hazard database to improve local climate, disaster, and health-related baseline data sharing for risk-informed planning
- Development of Local Disaster Risk Financing Strategies to speed up access to national disaster funds following a disaster
World Bank Support
The World Bank’s support has been critical in helping the Philippines recover from recent disasters, including Typhoon Rai, Tropical Storm Washi (2011), and Tropical Cyclone Mangkut (2018). The CAT-DDO 4 loan builds on previous loans and will continue to provide technical support to address more complex challenges in managing climate, disaster, and health-related risks.
Philippines’ Role in the World Bank’s Japan-World Bank Program
The Philippines is a key country for the World Bank’s Japan-World Bank Program for Mainstreaming Disaster Risk Management in Developing Countries, which aims to support developing countries in addressing disaster risk management challenges.