ADB approves $500M loan for Philippines disaster resilience

The Asian Development Bank (ADB) has approved a $500-million policy-based loan for the Philippines to enhance disaster resilience and response capabilities.

This financing aims to support reforms that improve disaster risk reduction and management planning at national, provincial, and city levels, integrating these into public financial management systems.

It also seeks to promote gender equality, disability inclusion, and social equity in DRRM plans and strengthen services provided by state-owned corporations during disasters.

The loan will provide faster payouts for damages through an additional risk financing stream, including a voluntary city disaster insurance scheme that offers quicker compensation for natural calamities like earthquakes or typhoons.

ADB aims to help the Philippines, which is highly vulnerable to natural hazards such as earthquakes, typhoons, and floods, build long-term resilience and reduce disaster impact on vulnerable populations.

The program would also boost DRRM policies and frameworks as well as long-term resilience in minimizing the impact of disasters, supporting previous programs like the Integrated Flood Resilience and Adaptation Project (Phase 1) and the Climate Change Action Plan Subprograms 1 and 2.