The Department of Finance on Tuesday reported the World Bank has approved up to $1.1 billion in development loans to be used starting next year.

The DoF said the loans will be disbursed by the World Bank's International Bank for Reconstruction and Development and will help address the effects of disasters and fulfill basic needs of Filipinos.

"Apart from disaster response, the development policy loan ensures that the Philippine government has the resources to prepare and strengthen key sectors, such as education and health, to withstand future crises," a statement from the DoF said.

Disaster resilience projects

Finance Secretary Benjamin Diokno said the country will soon receive a $500-million loan for disaster resilience projects under the Philippines Disaster Risk Management and Climate Development Policy Loan with a Catastrophe Deferred Drawdown Option.

The World Bank recently approved this loan on 16 November.

"The Philippines will greatly benefit from the development policy loan as one of the most disaster-prone countries in the world," Diokno said.

The loan allows the government to quickly withdraw $500 million within three years to respond to disasters. Access to the fund is renewable for four times more, giving the government a maximum loan validity of up to 15 years.

Drawdown feature

"The drawdown feature is particularly helpful as it allows the quick disbursement of funds upon the declaration of a state of calamity by the President, providing the government immediate liquidity to rapidly deliver crucial services — such as healthcare, shelter, and food, in times of emergency," Diokno said.

According to the 2023 World Risk Index, the Philippines remains the most vulnerable to natural disasters with a risk score of 46.86 out of 100. A score of 0 indicates very low risk. "The country has held the top spot since 2011," the DoF said.

President Ferdinand Marcos Jr. approved the Philippine Development Plan 2023-2028 which includes strategies on mitigating the effects of climate change and building up the country's capacity to respond and recover from natural disasters.

Climate change 

Scientists said climate change has worsened flooding, forest fires and drought globally as temperatures change drastically.