World Bank extends $300 million loan for earthquake response

MANILA, Philippines — The Philippines has secured a $300-million (P14.33 billion) financing from the World Bank to renovate state buildings in Metro Manila in preparation for the Big One and other emergencies.

The Washington-based multilateral lender has approved the $300-million loan for the Philippines Seismic Risk Reduction and Resilience Project aimed at enhancing the safety and resilience of selected public buildings in Metro Manila.

It will also strengthen the capacity of the Department of Public Works and Highways (DPWH) to prepare for and respond to emergencies.

The project is for the preparation for the Big One or the possibility of a magnitude 7.2 earthquake on the 100-kilometer West Valley Fault that runs through six cities in Metro Manila and nearby provinces.

The worst case scenario is estimated to result in 48,00 deaths and economic losses worth $48 billion with severe impact on government continuity and service provision.

World Bank country director Ndiame Diop said the project will reduce risks especially as Metro Manila is the country’s population, economic and cultural center.

“Enhancing the safety of its buildings and structures while boosting institutional response to disasters will help protect the lives and safety of more than 12 million residents, including the poor and most vulnerable. It will provide much-needed economic resilience for the country,” Diop said.

Under the project, some 425 buildings, including schools and hospitals, will be renovated to lessen damage from natural hazards. Approximately 300,000 teachers, students, doctors, patients and staff who use the buildings will benefit.