The Asian Development Bank (ADB) has approved a $500 million loan for the Philippines to support the implementation of disaster resilience and health emergency programs.

In a statement on Wednesday, ADB said the loan is part of the Second Disaster Resilience Improvement Program for the country.

"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 country director for the Philippines Pavit Ramachandran said.

The Philippines ranked highest in disaster risk among 193 countries in the World Risk Report 2024.

ADB noted that Filipinos experience an average of 20 typhoons per year and up to 150 earthquakes of varying magnitudes within the same period.

The new loan is consumable within five years and is renewable after that period as long as some of the funds remain unused.

With the additional funding, ADB expects the government to effectively implement the Philippines' Public Financial Management Roadmap. This includes strategies for 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 on the most vulnerable sectors," Ramachandran said.

Beyond its archipelagic nature and location within the Ring of Fire, the Philippines is also facing the impacts of climate change, which intensify typhoons and droughts.

According to the 2023 Sustainability Report of the Bangko Sentral ng Pilipinas, natural disasters caused P24.4 billion worth of damage to agricultural goods and infrastructure.