The World Bank is preparing a $1-billion contingent financing facility for the Philippines to strengthen disaster preparedness, protect critical infrastructure, and accelerate the release of public funds following major disasters.
The proposed Philippines Sixth Disaster Risk Management Development Policy Loan with a Catastrophe Deferred Drawdown Option (Cat DDO) is provisionally scheduled for World Bank approval on December 16.
Unlike financing for a specific infrastructure project, the development policy loan provides budget support tied to policy and institutional reforms.
The proposed facility aims to strengthen the Government of the Philippines' disaster preparedness and response, improve resilience of critical infrastructure, and enhance disaster risk financing and budgeting.
The reforms are organized under three pillars and are expected to produce measurable improvements by 2030.
The first pillar focuses on strengthening the country's capacity to anticipate and respond to disasters through the modernization of the Philippine Institute of Volcanology and Seismology's monitoring and warning systems for geotectonic hazards.
The modernization will also cover enhanced pre-disaster risk assessment, the declaration of a state of imminent disaster to enable anticipatory action, and the establishment of the National Tsunami Ready Board.
The second pillar seeks to improve the resilience of energy, telecommunications, and other critical infrastructure to ensure the continuity of essential services during disasters.
Proposed reforms under this pillar include institutionalizing energy resiliency standards for critical public facilities, requiring disaster-resilient engineering standards for telecommunications infrastructure, and mandating the assessment and retrofitting of critical lifeline infrastructure in the Greater Metro Manila Area.
The third pillar seeks to strengthen the government's capacity to finance and implement disaster preparedness and response activities.
Proposed reforms under this pillar include simplifying emergency procurement procedures and requiring National Government agencies to allocate dedicated budget resources for disaster-response equipment.
The World Bank said the Philippines remains among the world's most disaster-prone countries, facing about 20 typhoons and 100 to 150 perceptible earthquakes each year, alongside volcanic eruptions and landslides.
