THE World Bank has released a $496.25-million loan for recovery, rehabilitation and reconstruction efforts in areas affected by Typhoon Ompong (international code name Mangkhut).
In a statement, the World Bank said the funds will be accessed from the contingent line of credit, the Second Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (Cat-DDO 2), which would have ended on September 30, but was extended.
The funds will help families and communities recover, reconstruct vital infrastructure (such as roads, bridges, schools and hospitals), and restore basic social services.
“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,” said the bank’s statement.
Approved by World Bank’s Board of Executive Directors on December 22, 2015, the Cat-DDO 2 gives the Philippines immediate liquidity to recover from a natural disaster. This instrument also comes with technical assistance to support the government’s disaster risk reduction and management efforts.
National Economic and Development Authority (Neda) Undersecretary for Regional Development Adoracion M. Navarro told reporters the loan validity of the CAT-DDO 2 has already been extended.
The World Bank said the CAT-DDO 2 has been renewed to extend the availability of the contingent credit line until September 30, 2021.
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.
“It gives a government immediate access to funds after a major natural disaster, a time when available funds are often not adequate to meet the needs for reconstruction and recovery,” the World Bank said.
The Washington-based lender said other Cat-DDOs approved were in the Latin America and Caribbean region, including Colombia, Costa Rica, El Salvador, Guatemala, Panama and Peru.
On average, more than 1,000 lives are lost every year in the Philippines, with typhoons accounting for 74 percent of the fatalities, 62 percent of the total damages and 70 percent of agricultural damages.
According to the National Disaster Risk Reduction and Management Council (NDRRMC), over 700,000 families, or close to 3 million people, have been affected by the storm.
The NDRRMC has estimated the direct damage to infrastructure and agriculture at P33.6 billion, or around $623 million.
There were 138 injured and 68 dead in the regions of Ilocos, Cagayan Valley, Central Luzon, and the Cordillera Administrative Region (CAR), Calabarzon, Mimaropa and the National Capital Region.
Typhoon Ompong has particularly caused widespread destruction in the regions of Ilocos, Cagayan Valley, Central Luzon and CAR. 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.