The Asian Development Bank (ADB) has approved a $500 million policy-based loan to bolster the country’s disaster resilience and response capacity. The loan will support the Second Disaster Resilience Improvement Program, aimed at improving the country’s ability to manage natural hazards and health-related emergencies, ensuring quicker recovery and minimizing economic disruptions.
The Philippines, one of the fastest-growing economies in Southeast Asia, is highly vulnerable to earthquakes, typhoons, flooding, and volcanic eruptions, with over 60 percent of its land area at risk. This new funding seeks to strengthen disaster risk reduction and management (DRRM) policies at both national and local levels, incorporating gender and social inclusion in DRRM plans, and improving public financial management for more efficient disaster response.
“This program is vital to boosting the Philippines’ capacity to handle and recover from disasters, safeguarding lives, livelihoods, and the economy,” said ADB country director for the Philippines, Pavit Ramachandran. With its strategic focus on long-term resilience, the program also introduces innovative financial solutions like a voluntary city parametric disaster insurance scheme, ensuring faster payouts for disaster-affected communities.
The program complements ongoing ADB initiatives and builds on the reforms from the first Disaster Resilience Improvement Program, further strengthening the country’s preparedness and adaptive capacity to future risks.
