Synopsis
The Asian Development Bank has approved a $500 million loan to help the Philippines respond quickly to disasters caused by natural hazards or health emergencies. This funding aims to improve the country's resilience and recovery efforts, addressing the high disaster risk faced by the nation.Key Takeaways
- A $500 million loan approved by ADB.
- Focus on enhancing disaster resilience.
- Philippines ranks highest in disaster risk.
- Program supports national and local disaster management.
- Climate change is intensifying natural hazards.
Manila, Jan 29 (NationPress) The Asian Development Bank (ADB) has announced the approval of a policy-based loan amounting to 500 million US dollars aimed at equipping the Philippines with immediate financial resources in the event of disasters caused by natural hazards or health crises.
The ADB indicated that this funding will facilitate reforms designed to enhance resilience and promote timely response and recovery initiatives.
The Second Disaster Resilience Improvement Programme is a multi-year contingent disaster financing initiative, which includes an option to replenish the fund up to two times, pending approval from the ADB Board. Renewals of the loan can occur if there are unutilized funds after the initial five-year term.
As per the World Risk Report 2024, the Philippines holds the distinction of being the most disaster-prone nation among 193 economies.
According to ADB Country Director for the Philippines, Pavit Ramachandran, "The Philippines ranks among the fastest-growing economies in Southeast Asia, yet faces significant risks from earthquakes, volcanic activity, typhoons, rising sea levels, and flooding."
He noted that this initiative is designed to enhance the nation’s capability to mitigate and manage disaster risks at both national and local levels, including within state-owned enterprises, thereby achieving long-term resilience to minimize the impacts of disasters, particularly on the most vulnerable populations.
The World Bank also highlights that the Philippines is highly susceptible to natural disasters, with estimates suggesting that approximately 60% of its land and 74% of its population are exposed to various hazards such as floods, cyclones, droughts, earthquakes, tsunamis, and landslides.
Since 1990, the country has experienced 565 disasters, resulting in 70,000 fatalities and incurring damages of up to $23 billion. Aside from earthquakes and volcanic eruptions, the array of natural hazards threatening the Philippines is expected to worsen due to climate change.
