DOF considers World Bank loan for areas affected by Odette – Manila Bulletin
The Ministry of Finance (DOF) plans to use the World Bank disaster response loan to fund rehabilitation efforts in areas affected by Typhoon Odette.
Finance Secretary Carlos G. Dominguez III said they would activate the World Bank’s $ 500 million emergency loan that the government can quickly tap into following natural disasters.
“The World Bank has been notified,” Dominguez told reporters when asked about the Philippines’ fourth disaster risk management development political loan signed last November.
“The amount to be drawn will be determined as soon as the respective agencies provide the figures to DBM [Department of Budget and Management]/ DOE and approved by the President’s office, âexplained the CFO.
However, Dominguez said a state of calamity had to be declared to facilitate the release of the World Bank’s $ 500 million loan.
âThe financing of the rehabilitation after the typhoon is secured thanks to the loan of 500 million dollars recently signed by the World Bank. As soon as the state of national calamity is declared, the required funds will be immediately drawn, âhe said.
Quoting a moving message from Defense Secretary Delfin Lorenzana, Dominguez assured that the National Council for Disaster Risk Reduction and Management (NDRRMC) would recommend to the president the declaration to declare a state of calamity.
The Fourth Disaster Risk Management Development Policy Loan is a contingency fund that aims to protect the fiscal health of the government in the aftermath of natural disasters and epidemics.
The Philippines can access new funds from the World Bank upon declaration of a state of calamity and are available for three years after the project takes effect.
The government can also renew the line of credit with the World Bank for a total term of 15 years.
The World Bank had said the new loan supported the government’s ongoing efforts to strengthen disaster response and recovery policies and planning, including the integration of the use of pre-approved rehabilitation and recovery plans. in the event of a disaster.
CAT-DDO4 also supports government efforts to integrate climate risk management into the preparation of provincial commodity investment plans among LGUs, which can reduce the extent of agricultural and fisheries damage resulting from the risks. natural and extreme weather events.
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