Food Crisis Response Development Policy Operation Supplemental Financing

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The Supplemental Financing to the Food Crisis Response Development Policy Operation (DPO) for Philippines aims to cushion the social and economic impacts of the recent typhoons. It is underpinned by a comprehensive Post-Disaster Needs Assessment (PDNA) which, by request of Government, was led by the Bank in collaboration with the Asian Development Bank (ADB), European Commission (EC), United Nations (UN) agencies, and other development partners. It seeks to help provide the fiscal space to begin immediate reconstruction and is premised on Government's commitment to a transparent expenditure tracking system that will monitor and report on overall reconstruction spending. The supplemental financing conforms to Bank policy as provided under OP 8.60. Specifically, the government remains committed to the program supported by the original Food Crisis Response DPO; the supplemental financing will allow Government to begin needed reconstruction without foregoing planned development expenditures, including those related to social protection. Despite the magnitude and devastation of the typhoons, the macroeconomic framework remains sound. The need to begin reconstruction is immediate and supplemental financing was deemed the manner in which the Bank could most quickly address the Government's reconstruction financing needs.