Disaster Risk Management Development Loan with a CAT DDO

closed

The objective of the Disaster Risk Management Policy Loan with a Catastrophe Deferred Drawdown Option Program Project for Philippines is to enhance the capacity of the government of the Philippines to manage the impacts of natural disasters. This objective will be achieved by supporting the following aspects of the government's Disaster Risk Reduction and Management (DRRM) framework: (a) strengthen the institutional capacity for disaster risk management efforts; (b) mainstream disaster risk reduction measures into development planning; and (c) better manage the government's fiscal exposure to natural disaster impacts. This program document states a US$500 million program with a Catastrophe Deferred Drawdown Option (CAT-DDO) as budget financing for the Government of the Philippines (GOP) for an initial period of three years. The current administration, which was elected in May 2010, has noted disaster risk management as a key priority, which was mentioned as part of the President's state of the nation address. Disaster risk reduction and management issues were also broadly discussed during the Philippines Development Forum held on February 26, 2011; as per these discussions, disaster risk reduction and climate change adaptation measures have been integrated into key sector chapters of the 2011-2016 Philippine Development Plan (PDP) approved by the Government on March 28, 2011. In terms of international cooperation, the Philippines is a signatory country and an active member of the Association of Southeast Asian Nations (ASEAN) Agreement on Disaster Management and Emergency Response, coordinates programs with the UN International Strategy for Disaster Reduction (UNISDR), and supports other member countries in preparing for and responding to natural disasters. This operation is complementary to other ongoing programs supporting disaster risk management. The policy actions place greater emphasis on risk reduction as opposed to emergency response.