World Bank releases $496M for PHL assistance in wake of Ompong

The World Bank said Tuesday it has released $496.25 million to support the Philippine government in its efforts to hasten the recovery, rehabilitation, and reconstruction in areas hammered by Typhoon Ompong last month.

In a statement, the World Bank said the funds were accessed from the contingent line of credit called the Second Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (Cat-DDO 2).

The credit line will give the Philippine government flexibility to help families and communities recover, reconstruct vital infrastructure - such as roads, bridges, schools and hospitals - and restore basic social services.

The Cat-DDO 2 was approved by the World Bank’s Board of Executive Directors on Dec. 22, 2015.

This instrument also comes with technical assistance to support the government’s disaster risk reduction and management efforts, the multilateral lender said.

The drawdown period for the Cat-DDO 2 is three years and is renewable up to four times for a total of 15 years.

The CAT-DDO 2 has been renewed to extend the availability of the contingent credit line until September 30, 2021, the World Bank said.

According to the National Disaster Risk Reduction and Management Council (NDRRMC), more than 700,000 families or close to 3 million people have been 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 has estimated the direct damage to infrastructure and agriculture at P33.6 billion or around $623 million.

“We express our sympathies to all the Filipino people affected,” said Mara Warwick, World Bank country director for Brunei Darussalam, Malaysia, Philippines and Thailand.

“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.

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 World Bank.

Also, the country is highly exposed to geologic hazards including earthquakes and volcanic eruptions, it said. — RSJ, GMA News