Second Disaster Risk Management Development Policy Loan with a CAT-DDO

closed

The development objective of the Second Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option Program is to enhance the technical and financial capacity of the Government of the Philippines to reduce disaster risk and manage the socio-economic and fiscal impacts of natural disasters. This objective will be achieved by supporting policy actions that are aimed at: (i) strengthening risk reduction investment planning and regulations, and (ii) enhancing the financial capacity to manage natural disaster risk. These action areas are aligned with the Government’s commitment to ‘safer, adaptive and disaster resilient Filipino communities towards sustainable development’ as stated in the National DRRM Framework. In the last year of President Benigno S. Aquino’s term, these actions will be crucial for sustaining the Government’s reforms in DRM through the next administration. The overall risk for the operation is Moderate. The proposed operation reflects the corporate position of the World Bank Group at the international policy level. Several global fora have highlighted the importance of disaster and climate risk financing such as the financing for Development Agenda, the Bonn Climate Change Conference, the 21st Session of the Conference of Parties to the UN framework convention on climate change in Paris, and the Third UN World Conference on Disaster Risk Reduction in Sendai. The Bank is in a leading position to help close growing development funding gaps through innovative financial protection solutions, particularly ones that offer risk management mechanisms and tools for a range of fiscal and economic shocks, including those from natural disasters.