MANILA -- The World Bank (WB) on Friday said it has approved a $500 million dollar loan to help the Philippines rebuild schools, health facilities and homes faster after climate disasters.
Under the Philippines Disaster Risk Management and Climate Development Policy Loan with a Catastrophe Deferred Drawdown Option, the government now has the resources to restore or rebuild damaged schools, health centers, and houses after devastating storms or typhoons.
"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," said Ndiamé Diop, the World Bank's Country Director for Brunei, Malaysia, Philippines, and Thailand.
"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 funds can be released once the Philippine president declares a State of Calamity in response to a natural disaster or public health emergency.
This in turn triggers support in line with the Philippine Disaster Risk Reduction and Management Act of 2010 (DRRM Act).
The full amount of this financial support will be available for three years.
The loan also has a revolving feature, and the three-year drawdown period may be renewed up to four times, for a total maximum period of 15 years.
A study conducted in 2022 by two German institutions named the Philippines as the most disaster-prone country in the world.