The World Bank (WB) is preparing a $1-billion contingent financing facility for the Philippines to strengthen disaster preparedness, protect critical infrastructure and accelerate the release of public funds following major disasters, according to a report by BusinessWorld.
The proposed Philippines Sixth Disaster Risk Management Development Policy Loan with a Catastrophe Deferred Drawdown Option (Cat DDO) is provisionally scheduled for World Bank board consideration, offering the government quick access to funds when a natural disaster strikes. This type of loan allows the Philippines to draw down funds only after a declared catastrophe, reducing the need for emergency budget reallocations.
The Philippines is among the most disaster-prone countries in the world, facing frequent typhoons, earthquakes, and volcanic eruptions. The World Bank has been a longstanding partner in the country's disaster risk management efforts, providing both technical assistance and financial instruments to build resilience and improve post-disaster response capabilities.