Dubbed the Second Disaster Resilience Improvement Program, the loan provides the country with quick-access financing to support immediate recovery efforts while implementing long-term disaster risk reduction and management (DRRM) reforms.
The facility has a multiyear contingent disaster financing structure, allowing replenishment twice within a five-year period, pending ADB board approval.
Most disaster-prone among 193 economies
“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,” said ADB Country Director for the Philippines Pavit Ramachandran.
“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,” Ramachandran said.
According to the World Risk Report 2024, the Philippines ranks as the most disaster-prone nation among 193 economies, with 60 percent of its land area exposed to multiple hazards and nearly three-fourths of its population at risk. The country experiences at least 20 typhoons annually and an average of 150 earthquakes of at least magnitude 4 each year.
Preparedness, response
The program will integrate DRRM into public financial management (PFM) reforms and promote gender equity, disability, and social inclusion in disaster preparedness. It will also enhance the service delivery of state-owned corporations for disaster response and introduce a voluntary parametric insurance scheme for cities, enabling faster payouts for damage caused by typhoons and earthquakes.
This initiative builds on previous ADB-backed reforms, including the Integrated Flood Resilience and Adaptation Project and Climate Change Action Plan Subprograms 1 and 2, ensuring a more sustainable, disaster-ready future for the Philippines. — Ed: CSN
