The World Bank has approved a $500 million credit line to support the Philippines in managing disasters and climate threats, with a particular focus on safeguarding schools, health facilities, and human settlements.
In a statement, the World Bank said that the Philippine government can quickly access the funds through the Philippines Disaster Risk Management and Climate Development Policy Loan with a Catastrophe Deferred Drawdown Option when major natural disasters or health crises occur, minimizing the impact on the economy and long-term development.
Ndiamé Diop, the World Bank’s Country Director for Brunei, Malaysia, Philippines, and Thailand, said: “The real benefit of this support is its ability to rapidly deliver crucial services – such as healthcare, shelter, and food – to those most affected by disasters or climate events. It’s about ensuring that those with the least resources are taken care of and can promptly recover after these events.”
Diop emphasized that an important aspect of the support is to ensure the government has the resources to restore or rebuild damaged schools following a disaster, ensuring uninterrupted education for children.
The funds can be disbursed when the country’s President declares a State of Calamity in response to a natural disaster or public health emergency, in accordance with the Philippine Disaster Risk Reduction and Management Act of 2010.
The entire financial support amount will be available for three years, giving the Philippine government immediate access to funds when needed, enabling better management of the cost of shocks and protection for the Philippine population.
The financial support has a revolving feature, and the three-year drawdown period may be renewed up to four times, for a total maximum period of 15 years.”