$500-M ADB loan targets resilience
‘The Philippines is one of the fastest-growing economies in Southeast Asia but is at high risk for earthquakes, volcanic eruptions, typhoons, rising sea levels and flooding’
The ADB financing aims to boost the country’s capacity for disaster risk reduction as the Philippines is one of the fastest-growing economies in Southeast Asia but is at high risk for earthquakes, volcanic eruptions, typhoons, rising sea levels and flooding.
Photograph courtesy of ADB
The government obtained a $500-million loan from the Asian Development Bank (ADB) which it seeks to use in implementing processes for disaster resilience and health emergency programs.
In a statement on Wednesday, ADB said the loan is part of the Second Disaster Resilience Improvement Program.
“The Philippines is one of the fastest-growing economies in Southeast Asia but is at high risk for earthquakes, volcanic eruptions, typhoons, rising sea levels and flooding,” ADB director for the Philippines Pavit Ramachandran said.
The Philippines showed the highest disaster risk out of 193 countries in the World Risk Report 2024.
ADB shared that Filipinos experience an average of 20 typhoons per year and up to 150 earthquakes in various magnitudes within the same period.
5-year term for loan
The new loan is consumable within five years and renewable after that period, as long as some of the funds remain unused.
With the additional funds, ADB expects the government to effectively implement the Philippines’ Public Financial Management Roadmap. This includes strategies on the efficient distribution of national and local funds for disaster resilience and health emergencies.
“With this program, we aim to strengthen policies and frameworks, and attain long-term resilience to lessen the impact of disasters, especially to the most vulnerable sectors,” Ramachandran said.
Aside from the country’s archipelagic nature and inclusion in the Ring of Fire, the Philippines is facing the impacts of climate change which intensifies typhoons and drought.
According to the 2023 Sustainability Report of the Bangko Sentral ng Pilipinas, natural disasters damaged agricultural goods and infrastructure worth P24.4 billion.