MANILA, Philippines - Emergency loan facilities amounting to $1 billion have been approved by the World Bank and the Asian Development Bank (ADB) for areas devastated by Super Typhoon Yolanda.
The World Bank board formally approved the $500-million loan facility in Washington – part of nearly $1 billion committed to the Philippines by the WB. Axel van Trotsenburg, WB regional vice president for East Asia and the Pacific, told The STAR about the expected approval of the loan facility after he visited Tacloban yesterday.
Trotsenburg said the review of the supplemental loan was done in record time, cutting short the process by 90 to 95 percent.
The ADB also approved a $500-million emergency loan at record speed to help Yolanda victims.
“The speed of assistance is critical to ensure that loss of shelter, assets or livelihoods is only temporary, and quickly resolved with skills programs, income generating activities, and high-quality rehabilitation and reconstruction,†ADB president Takehiko Nakao said before the weekend.
Natural disasters, especially those occurring in poor and developing nations force families further into poverty, Nakao added.
Trotsenburg, who flew to the Philippines from South Korea to personally inspect the damage from the typhoon, said he was impressed by the resilience of the victims and eagerness to rebuild and restart their lives.
He said he expected reconstruction to take years, and the WB is committed to be a partner of the Philippines for the long term.
“We are willing to partner with the government in this and if you require additional resources, we will positively consider this,†he told The STAR.
Relief efforts are expected to continue well into 2014, posing a budget challenge for the Philippines which had been hit by 23 typhoons by the end of October and a 7.2-magnitude earthquake that struck Bohol.
Additional funding from external sources would then allow the Philippine government to provide support in five priority areas, including shelter and reconstruction; power restoration; livelihood and employment; resettlement and psycho-social care, and environmental protection.
Earlier, the ADB released a $3-million grant from the Asia Pacific Disaster Response Fund which the bank administers.
Another $20 million grant from the Japan Fund for Poverty Reduction will be made available by mid-December. These, together with the $500 million, will support the government’s efforts in the immediate recovery phase.
To immediately supplement the first phase of support, the ADB is designing a community-driven development project that will help rebuild communities and assist reconstruction in affected areas.
ADB also organized a Typhoon Yolanda Response Team and plans to set up an extended mission in one of the affected areas to support the implementation of ADB’s assistance.
Two technical assistance projects will help implement and monitor the reconstruction plan.
Poe: Study Europe’s recovery plan
As this developed, Sen. Grace Poe called for a study on the possibility of adopting the European Recovery Program or “Marshall Plan†to help facilitate the reconstruction, rehabilitation and revival of areas ravaged by Yolanda.
Crafted by the United States after the second World War, the Marshall Plan was focused on bringing back what was lost after the war and improving the conditions through modernization, utilization of high-efficiency models, reducing trade barriers, and instilling a sense of hope and self-reliance.
“The Marshall Plan should be looked into more closely for the purpose of possibly adopting it, or portions of which that could be applicable in the case of Yolanda-struck areas, for an effective and efficient reconstruction, rehabilitation and revival of Yolanda-struck areas,†Poe said in her resolution.
She noted that based on the Marshall Plan model, there is a need for one central administration to supervise the implementation of the program. All funds intended for the rehabilitation, reconstruction and revival would be jointly administered by the local government units and the central administration.
“The agriculture industry and the economy of Central Philippines have been driven down to ground zero and would need much funding, cooperation and efficient and effective administration for it to be reconstructed, rehabilitated and revived, to enable our countrymen affected by Yolanda to be restored to their normal lives prior to Yolanda’s attack,†Poe said.
During the implementation of the Marshall Plan in Europe, the cooperative allocation of funds was encouraged and panels of government, business and labor leaders were convened to examine the economy and see where aid was needed.
Some of the funds were lent to private entities as long as these were used for the rehabilitation effort.
“The hope for a much needed speedy, effective and efficient reconstruction, rehabilitation and revival of Yolanda-struck areas is at our doorstep, considering the outpour of support in terms of relief goods and financial aid both from domestic and international sources,†Poe said.
“It is unfortunate that skepticism brews in some of our countrymen regarding the allocation and disbursement of the financial aid and legislatively allocated funds, insinuating that said funds might be lost to red tape, corruption, or allocation to affected areas may be marred by favoritism due to partisan politics and the like,†she added.
Poe noted that in 1952 when the funding for the Marshall Plan ended, the economy of every participant state had surpassed pre-war levels and the next two decades saw Western Europe enjoying unprecedented growth and prosperity.
Aid for Yolanda victims continues
Poe’s resolution came as the Philippines continues to receive various assistance from the international community even one month after Typhoon Yolanda and the latest is the $1 million donation pledged by Mexico.
Vice President Jejomar Binay announced Thursday night that Mexican Ambassador Julio Camarena-Villaseñor personally made the pledge to him during their meeting Thursday afternoon.
Binay also bared yesterday that the assistance from the United States has now reached $60 million. - with Marvin Sy, Jose Rodel Clapano