World Bank lends $500 million to Philippines for COVID efforts

MANILA, Philippines — The World Bank has approved a $500 million loan to support the country’s efforts to control the spread of the coronavirus disease 2019 (COVID-19)

This third risk management development policy loan cleared by the World Bank board last week aims to strengthen the Philippine government’s capacity to recover from natural disasters and support urgent needs arising from the COVID-19 crisis.

The government is currently in the process of strengthening the Philippines’ institutional framework for disaster risk management through the creation of a new department for disaster risk and resilience.

“The World Bank is committed to supporting efforts to strengthen the Philippines’ capacity to prepare for and respond to natural disasters as well as health and economic shocks like COVID-19,” said Achim Fock, World Bank acting country director for Brunei, Malaysia, Philippines and Thailand.

“Natural disasters and pandemics disproportionately hurt poor families and communities. Enhancing risk management and the capacity to address these challenges can help ensure that the Philippines can sustain progress in poverty reduction.”

The Third Risk Management Development Policy Loan will support key policy reforms being undertaken by the government in the area of disaster risk management.

These include the adoption and implementation of a unified disaster rehabilitation and recovery planning framework by the national government and local government units; promotion of integrated hazard and risk analysis in physical planning, and in support of policy development.

Development of multi-year investment plans for seismic risk reduction and retrofitting of important government buildings and implementation of an emergency cash transfer program during shocks.

World Bank noted that the Philippines is one of the most hazard-prone countries in the world, exposed to multiple natural hazards including typhoons, earthquakes, flooding, storm surges, tsunamis, volcanic eruptions and landslides.

Close to 74 percent of the population is vulnerable to natural disasters and 60 percent of total land area is exposed to multiple hazards.

In addition to these natural hazards, the country is now facing the impacts of the global outbreak of COVID-19.

The whole island of Luzon has been placed under an extended enhanced community quarantine until April 30.

The World Bank is working closely with the authorities to address the unfolding COVID-19 emergency through financial support and just-in time technical assistance.

It is rolling out a $14 billion fast-track package to strengthen the COVID-19 response in developing countries and shorten the time to recovery.

The immediate response includes financing, policy advice, and technical assistance to help countries cope with the health and economic impacts of the pandemic.

It’s private sector arm International Finance Corporation is also providing $8 billion in financing to help private companies affected by the pandemic and preserve jobs.