DOF mulls calamity resiliency fund

MANILA, Philippines - The Department of Finance is eyeing the creation of a calamity resiliency fund to enable the country to respond to and recover from the effects of extreme man-made and natural disasters in a timely and efficient manner.

In a briefing, Finance Secretary Cesar Purisima highlighted the need to develop a national, long-term preventive approach to managing natural catastrophes and protecting lives and property as the total economic cost of severe weather disturbances is huge  and has  continued to rise over time.

The Philippines is the  most exposed country to tropical storms in the world, experiencing an average of 20 typhoons a year.  It is also exposed to earthquakes and volcanic eruptions.

“The calamity resiliency fund would be a true special fund in that it will not be used for other purposes but strictly for projects aimed at improving resiliency against calamities,” Purisima said.

The  fund, he said,  would allow the country to respond quickly to natural disasters without diverting resources from important long-term development projects.  It can be used to fund the construction of public infrastructure as well as the relocation of families residing in risky, low-lying areas.

The country’s 2013 national disaster budget, amounting to about $171 million  was used up even before Super Typhoon Yolanda pummeled smashed into Central Visayas.

According to Purisima, the country’s economic team has yet to discuss the proposal which includes the amount of funds to be set aside for this initiative.

Funding would come from tax revenues, he pointed out.

 â€œWe need to fund initiatives that will make public buildings, for instance, withstand the ‘Yolandas’ of the future,” Purisima said.

The National Economic and Development Authority said the government  needs P360.8 billion to fund the massive rehabilitation efforts for the the storm-ravaged Eastern Visayas, which makes up about  12 percent of the country’s gross domestic product.

Natural disasters cause disruption to electricity, networks, food and water supplies, health services and communications systems.  This compounds the costs of recovery  as limited access to these essential services inhibits the ability of communities to get back on track.