WASHINGTON – In a significant move to bolster the Philippines’ defenses against natural disasters and climate change impacts, the World Bank has approved a $500 million loan. This financial support is designed to enhance the country’s capacity to respond to large-scale natural disasters or health crises, with a focus on protecting schools, health facilities, and human settlements.
The Philippines is one of the most disaster-prone countries in the world, facing a high risk of typhoons, landslides, earthquakes, and volcanic eruptions. According to the World Risk Index 2022, it ranks as the globe’s most vulnerable nation to these hazards. Over the past three decades, natural disasters have affected approximately 120 million people and claimed nearly 33,000 Filipino lives.
The newly approved credit facility under the Catastrophe Deferred Drawdown Option is part of the Disaster Risk Management and Climate Development Policy Loan. It ensures that funds will be immediately available when needed, particularly after a State of Calamity is declared by the Philippine president. The funds are intended for rapid delivery of essential services such as healthcare, shelter, and food to those most impacted by disasters.
Ndiamé Diop, the World Bank’s Country Director for the Philippines, highlighted the importance of this loan in providing critical support during times of crisis. He noted that a significant 60% of the country’s land area and about 74% of its population are at risk from various natural hazards. Alarmingly, around 78% of public schools and 96% of students are exposed to these dangers.
A recent study further emphasizes that 47% of the Philippine population lives in areas vulnerable to climate hazards including earthquakes, tsunamis, floods, tropical cyclones, and droughts. Between 2021 and 2023 alone, disasters damaged roughly 4,000 schools in the Philippines, disrupting education for two million children.
The financing agreement also includes provisions for restoring or rebuilding damaged infrastructure. It supports reforms for disaster preparedness such as disaster-proofing schools and strengthening health facilities. The loan features a revolving mechanism with a three-year drawdown period that is renewable up to four times over a span of 15 years.
This strategic initiative underscores the World Bank’s commitment to assisting nations like the Philippines in managing disaster risks more effectively and mitigating the impacts of climate change on vulnerable populations.
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