World Bank lends $500 million for Philippines climate resilience projects

MANILA, Philippines — The World Bank has approved a $500-million credit line to prepare the Philippines, particularly its schools and health facilities, for disasters and climate threats.

The multilateral lender said in a statement that its board of executive directors approved the Philippines Disaster Risk Management and Climate Development Policy Loan with a Catastrophe Deferred Drawdown Option.

The facility sets aside $500 million that the national government can immediately draw upon during times of natural disasters or health crises to minimize the impact on the economy.

The funds, which will be available for three years, may be disbursed when the President declares a state of calamity in response to a natural disaster or public health emergency.

The World Bank said the three-year drawdown period may be renewed up to four times, for a total maximum period of 15 years.

World Bank country director for the Philippines, Brunei, Malaysia and Thailand Ndiamé Diop said the credit line would ensure the government has the resources to rebuild damaged schools following a disaster so that children could continue their education without significant interruptions.

“The real benefit of this support is its ability to rapidly deliver crucial services – such as healthcare, shelter and food – to those most impacted by disasters or climate events,” he said.

“It’s about making sure the people who have the least are taken care of and can bounce back immediately after these disaster events,” he added.

The financing would also help schools, communities and health facilities become better prepared to mitigate the impact of future disasters.

The Philippines is vulnerable to multiple hazards including typhoons, landslides, floods, storm surges, droughts, volcanic eruptions and earthquakes.

When natural disasters hit the country, these damage infrastructure, disrupt the delivery of essential education and health services, and lead to some families falling into poverty.

Lesley Cordero, senior disaster risk management specialist at the World Bank, said extreme climate events frequently cause significant damage to infrastructure, communities and people’s livelihoods.

“The reforms this financial instrument supports are key in making sure places where people learn, live and take care of their health are built with climate and disaster challenges in mind. This way, services will not be interrupted when natural disasters strike, and this is particularly important for those who are already vulnerable,” Cordero said.