The World Bank said Tuesday said it released $496.25 million to support the Philippine government’s efforts to hasten recovery, rehabilitation and reconstruction of areas heavily damaged by typhoon ‘Ompong’ last month.
Typhoon Ompong, internationally known as Mangkhut, damaged infrastructure and agricultural areas mostly in northern Luzon provinces and claimed the lives of dozens of individuals.
Data from the National Disaster Risk Reduction and Management Council showed that more than 700,000 families, or close to 3 million people, were affected by the storm, with 138 injured and 68 dead in the regions of Ilocos, Cagayan Valley, Central Luzon, and the Cordillera Administrative Region, Calabarzon, Mimaropa and the National Capital Region.
The NDRRMC estimated the direct damage to infrastructure and agriculture at P33.6 billion or around $623 million.
The storm particularly caused widespread destruction in the regions of Ilocos, Cagayan Valley, Central Luzon, and the Cordillera Administrative Region. With a combined population of more than 21 million, these regions are among the country’s important producers of rice, corn, vegetables, livestock and poultry.
Mara Warwick, World Bank country director for Brunei Darussalam, Malaysia, the Philippines and Thailand, said the multilateral lender expressed its sympathies to the Filipino people affected by the typhoon.
“Natural disasters can exacerbate poverty through loss of lives, livelihood, property and infrastructure, and can roll back years of development gains. They disproportionately disrupt the lives of poor and vulnerable people, particularly women, the elderly and children. We want them to know the Bank supports the country’s efforts to address their needs,” Warwick said.
The funds accessed from the contingent line of credit – called the Second Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option – will give the government flexibility to help families and communities recover, reconstruct vital infrastructure (such as roads, bridges, schools and hospitals) and restore basic social services.
Approved by World Bank’s board of executive directors on Dec. 22, 2015, the Cat-DDO 2 gives the Philippines immediate liquidity to recover from a natural disaster. The instrument also comes with
technical assistance to support the government’s disaster risk reduction and management efforts.
The program enhances the country’s preparedness for natural disasters in the future, strengthening investment planning and regulations to reduce disaster risks, and help manage the financial impacts of natural disasters.
The drawdown period for the Cat-DDO 2 is three years and is renewable up to four times for a total of 15 years. Amounts repaid during the drawdown period are available for subsequent withdrawal. The CAT-DDO 2 has been renewed to extend the availability of the contingent credit line until Sept. 30, 2021.
