PH secures P14-b French loan to fund disaster risk reduction

The Department of Finance and the Agence Française de Développement of France signed a €250 million policy-based loan—or about P14 billion—to support disaster risk reduction enhancement at the local level in the Philippines.
The Disaster Risk Reduction Enhancement at the Local Level Program will also support the Department of the Interior and Local Government in the process of decentralizing the mandate and services for disaster risk reduction and climate change management to the local government units.
It will not only help build the capacity of the LGUs but also support reform programs throughout the country, taking into account the demands of the “new normal” that seeks to address public health emergency concerns, as demonstrated by the COVID-19 experience.
The program seeks to support LGUs in a sustainable trajectory and build the resilience of local economies and communities. At the same time, this will limit any damage caused by disasters, reduce post-disaster emergency response time and make the recovery period more effective.
Finance Secretary Carlos Dominguez III said the loan would complement the government’s move to shift its focus from theorizing about global warming to executing practical climate adaptation and mitigation projects on the ground.
“We thank the people and the government of France for this financial assistance meant to scale up the disaster risk management capabilities of our LGUs, ramp up efforts to curtail the spread of COVID 19 and boost the resiliency of our communities in the face of climate change,” he said.
“This financing agreement highlights the strong partnership between France and a high-risk country like the Philippines on mitigating the adverse impact of climate change, in support of our commitments on climate action under the Paris Agreement,” Dominguez said.
Laurent Klein, AFD country director, said the loan is the result of a long-term partnership with the DILG through the Disaster Risk Management Institutional Strengthening Project financed by the European Union through the AFD.
“It aims to further develop our cooperation on disaster risk management and climate change adaptation capacity for a period of three years. It is also in line with France’s commitment to support climate action under the Paris Agreement, in order to help the Philippine Government meet the ambitious targets it set for itself when it submitted its Nationally Determined Contribution to the UNFCCC earlier this year,” Klein said.
French Ambassador Michèle Boccoz said that, “Through the AFD, France is truly keen to support the Government of the Philippines in implementing strategic reforms towards climate change mitigation and adaptation, including disaster risk governance at the local level.”
Agence Française de Développement implements France’s policy on international development and solidarity. Through its financing of NGOs and the public sector and its research and publications, AFD supports and accelerates transitions towards a fairer, more resilient world.
It also provides training in sustainable development and other awareness-raising activities in France.