The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) Program Information Document (PID) Appraisal Stage | Date Prepared/Updated: 29-Sep-2021 | Report No: PIDA32631 Page 1 of 11 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) BASIC INFORMATION A. Basic Project Data OPS TABLE Country Project ID Project Name Parent Project ID (if any) Fourth Disaster Risk Management Development Policy Loan with a Philippines P177125 Catastrophe-Deferred Drawdown Option (P177125) Region Estimated Board Date Practice Area (Lead) Financing Instrument Development Policy EAST ASIA AND PACIFIC 16-Nov-2021 Urban, Resilience and Land Financing Borrower(s) Implementing Agency Republic of the Philippines Department of Finance Proposed Development Objective(s) The development objective is to strengthen the Government of the Philippines' institutional and financial capacity to manage risks from climate change, natural disasters, and disease outbreaks. Financing (in US$, Millions) FIN_SUMM_PUB_TBL SUMMARY Total Financing 500.00 DETAILS -NewFin3 Total World Bank Group Financing 500.00 World Bank Lending 500.00 Decision The review did authorize the team to appraise and negotiate Page 2 of 11 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) B. Introduction and Context Country Context The Philippines economy has been growing at a sustained average annual rate of 6.4 percent over the last decade, exceeding its regional peers. With sustained economic growth, the country is now transitioning from a lower middle- income country to an upper-middle-income country, as its Gross Domestic Product (GDP) per capita nearly doubled, from US$1,607 in 2000 to US$3,022 in 2018 (constant 2010 US$).1 Sustained economic growth supported by inclusive policies has allowed the country to make progress in reducing poverty and inequality. The poverty rate declined from 23.3 percent in 2015 to 16.6 in 2018. Gini coefficient likewise fell 44.9 to 42.7 over the same period.2 Climate change and natural disasters are threatening to revert the country’s development gains. The Philippines remains highly vulnerable to multiple hazards due to its unique geography. The country ranks ninth as the most affected country globally from extreme weather events, second highest among Asian countries based on the World Risk Index 2020.3 Around 60 percent of the country’s total land area and at least 74 percent of Filipinos are vulnerable to multiple hazards, including typhoons, earthquakes, floods, storm surges, tsunamis, volcanic eruptions, and landslides. Climate change continues to exacerbate the impacts of disasters. The Philippine Atmospheric, Geophysical and Astronomical Services Administration has projected warming at a rate of 0.1 C ̊ per decade, which is expected to alter the rainfall pattern and distribution and increase the frequency of extreme events. The economic costs of climate change and natural disasters are considerable. Based on the Philippines catastrophe risk model, the country is estimated to incur on average damages of Php176.7 billion (US$3.5 billion) from typhoons and from earthquakes each year, accounting to around one percent of GDP. Economic losses associated with rare catastrophic events such as Typhoon Yolanda (Haiyan) were even higher, reaching 4.6 percent of the country’s GDP. These costs may further increase in the coming years as the severity of climate change and natural disasters intensifies. While no full fiscal risk assessment has been carried out, quantifying contingent liabilities at the national and subnational level, historical analysis shows that between FY2015-2018, the Government spent an average of Php91.9 billion (US$1.9 billion) per year (0.6 percent of GDP) on disaster-related response, recovery, and reconstruction activities.4 The COVID-19 pandemic has aggravated the impacts of climate change and natural disasters. Economic disruptions brought about by the COVID-19 pandemic, along with climate change and natural disasters, continue. The economy contracted by 4.2 percent in the first quarter of 2021 amid the prolonged implementation of containment measures and a deterioration in domestic demand conditions. Essential health protocols such as social distancing and lockdown measures have created massive disruptions on mobility, tourism, business operations, and local supply chains, resulting in significant losses in household income and workers’ unemployment. The compounding impacts of climate change, natural disasters, and disease outbreaks are expected to magnify the country's economic losses. 1 World Bank Group (2019). Country Partnership Framework for the Republic of the Philippines 2019-2023. 2 Ibid. 3 http://weltrisikobericht.de/english/ The World Risk Index is calculated on a country-by-country basis through multiplication of exposure and vulnerability. Exposure covers threats of the population due to earthquakes, storms, floods, droughts, and sea-level rise. Vulnerability focuses on societies’ capacity to cope. 4 World Bank Group (2020). Public Expenditure Review: Disaster Response and Rehabilitation in the Philippines. From the bank so between that and then finally some kind of meeting Page 3 of 11 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) The Philippines faces a tremendous challenge in reversing the devastating effects of COVID-19. The effort to flatten the infection curve while mitigating the impact of the pandemic on the economy remains a major policy challenge. Given limited health management capacity, the government has to resort to cycles of lockdown with strict mobility restrictions as cases spike and hospitals reach near full capacity. Economic activities are hampered, businesses and consumer confidence stay depressed, and unemployment remains high. Following an average annual growth rate of 6.4 percent between 2010-2019, the economy significantly contracted by 9.6 percent in 2020 owing to broad-based weakness in agriculture, industry, and services sectors as mobility restrictions affected activities. Poverty, based on the lower middle- income poverty threshold (US$3.20 in 2011 PPP), is estimated to have increased from 15.8 percent in 2019 to 18.5 percent in 2020. There were signs of an economic rebound in the first half of 2021, anchored on a recovering external environment, higher public investment, and increased remittances flows. Domestic demand, however, remained generally muted. The compounding impacts of climate change, natural disasters, and the COVID-19 pandemic have disproportionately affected the poor. Around one million Filipinos across the country are impoverished by natural disasters every year. Many of them reside in disaster-prone provinces on the eastern edge of the country. Many of the poor are also working in the agriculture and fishery sectors, which are highly vulnerable to climate change and natural disasters. The COVID-19 pandemic has worsened the situation. Lockdowns and mobility restrictions severely affected the poor through loss employment, income, and livelihood. It also aggravated challenges of food security and nutrition. The proposed Fourth Disaster Risk Management (DRM) Development Policy Loan (DPL) with a Catastrophe-Deferred Drawdown Option (CAT-DDO 4) of US$500 million aims to strengthen the Government of the Philippines’ institutional and financial capacity to manage risks from climate change, natural disasters, and disease outbreaks. The program and its pillars would focus on (i) strengthening disaster response and recovery policies and planning; and (ii) strengthening the resilience of Government programs in key sectors. The operation builds on the achievements and lessons learned from the first and second DRM DPLs with CAT-DDO (P125943 and P155656), the Third DRM DPL (P171440) as well as the decade- long partnership between the World Bank (WB) and the Government of the Philippines (GOP) related to enhancing DRM, Disaster Risk Financing (DRF), and climate change adaptation. The macroeconomic policy framework is adequate for the purpose of the proposed operation. The Government is taking necessary measures to mitigate the impact of the crisis while remaining committed to maintaining macroeconomic stability. On monetary policy, the BSP is committed to the inflation-targeting objective and is responsive to global interest rate movements. It has maintained a market-determined exchange rate regime as the first line of defense against external shocks and accumulated sizable foreign exchange reserves as a second line of defense. On fiscal policy, the authorities are committed to fiscal consolidation over the medium term, which is credible considering the conservative expenditure policy in the past 10 years, which created fiscal space allowing the expansion of public expenditure to manage the COVID-19 impacts, and public investment program to support recovery. In addition, the Government’s commitment to accelerate the pace of structural reforms as part of the recovery will further promote competitiveness and support growth. Public debt is sustainable owing to the expected growth recovery and fiscal consolidation. Page 4 of 11 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) Relationship to CPF The proposed CAT-DDO 4 is fully aligned with the Systematic Country Diagnostic (SCD) and the current Country Partnership Framework of the World Bank Group for the Philippines (CPF, Report No. 24605-PH for FY2019-2023). The SCD identified policy priorities that can further position the Philippines in addressing the country’s core constraints to reducing poverty and promoting shared prosperity in line with the Philippine’s Ambisyon Natin 2040 vision. It highlighted the need for actions that aim at addressing the country’s intense vulnerabilities by scaling up efforts to protect the country from natural disasters and climate change impacts. The proposed operation also supports the CPF Focus Area #3 on reducing core vulnerabilities by building peace and resilience, which aims to address the country’s core vulnerabilities of conflict alongside climate change and natural disasters, which pose the most significant risks to future growth in the Philippines. In particular, it supports the CPF Objective #10 on increased resilience to natural disasters and climate change. Under the same focus area, the proposed CAT-DDO 4 will support the implementation of the Philippines Nationally Determined Contribution, particularly as it relates to climate resilience. The proposed CAT-DDO 4 directly contributes to the achievement of the World Bank’s Twin Goals of ending extreme poverty and promoting shared prosperity. A strong linkage exists between enhancing resilience and poverty reduction. The impact of natural disasters and climate change, and disease outbreaks on the poor in terms of losses of assets and well-being are substantial. The CAT-DDO 4 will help the country reduce risks and increase its ability to cope with disasters, climate change, and disease outbreaks will also help reduce poverty. C. Proposed Development Objective(s) The development objective is to strengthen the Government of the Philippines' institutional and financial capacity to manage risks from climate change, natural disasters, and disease outbreaks. Key Results The CAT-DDO 4 will support Government’s continued efforts in building the country’s resilience to natural disasters, climate change and disease outbreaks. It will focus on addressing the key gaps in the management of risks associated with natural disasters and support actions geared towards: (i) institutionalizing the use of Disaster Recovery Plans for vulnerable local government units (LGUs) to rapidly request and access for funding from the National Disaster Risk Reduction and Management (NDRRM) Fund to expedite the rehabilitation and reconstruction process, (ii) integrating climate and disaster risk information of LGUs within the National Government’s Geospatial Information Management and Analysis Project for Hazards and Risk Assessment in the Philippines (GeoRiskPH) platform; (iii) strengthening the delivery of community-based DRM related Technical and Vocational Education and Training (TVET) program to equip people in vulnerable LGUs with critical and targeted skills to be able to quickly respond to and recover from disasters; (iv) integrating climate change adaptation- disaster risk reduction (CCA-DRR) measures in local investment plans of cities and vulnerable provinces; (v) increasing compliance of National Government Agencies (NGAs) and LGUs in climate budget tagging; and (vi) updating the existing Provincial Commodity Investment Plans based on climate risk vulnerability assessment. D. Project Description Pillar A: Strengthening Disaster Response Policies and Planning Prior Action #1: The Government has mandated the use of Disaster Rehabilitation and Recovery Plans to link funding Page 5 of 11 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) approval from the National Disaster Risk Reduction and Management (NDRRM) Fund to planning through a NDRRM Council memorandum circular. The NDRRM Council has issued revised guidelines on the administration of the NDRRM Fund to enhance its responsiveness, transparency, and accountability.5 Under the revised Guidelines, the NDRRM Council has mandated the use of the approved Disaster Rehabilitation and Recovery Plans as a requirement to request funding from the NDRRM Fund for recovery and reconstruction projects. The Guidelines also adopted equity-based criteria in reviewing and approving funding proposals focusing on vulnerable LGUs. These include geographic vulnerability to disasters, poverty incidence, income class, and intensity of the impact of damages on population, housing, agriculture, and infrastructure. Closely linking rehabilitation and recovery planning to funding approvals will speed up the rehabilitation and recovery process, facilitate for efficient allocation of the limited NDRRM Fund, and ensure coherence of Rehabilitation and Recovery Plans with the Government’s goal to have safer, adaptive and disaster-resilient communities. Prior Action #2: The Government has required NGAs and LGUs to establish baseline data for disaster and climate risks to inform DRM interventions through the NDRRM Plan 2020-2030. The Government, through the NDRRM Plan 2020-2030, requires NGAs and LGUs to establish baseline information for all hazards and risks assessments to inform DRM interventions, specifically for the development of local and national DRM strategies. Currently, GeoRiskPH has a good coverage of hazard related data from National agencies. GeoRiskPH would be further enhanced with the inclusion of baseline data from LGUs that would help capture the changes in baseline environmental/ hazard/ disease outbreak conditions of the LGUs brought by the impacts of climate change. It is expected that improved accuracy, availability, access and use of climate, disaster and health-related data will lead to timely and informed policymaking, planning, and disaster risk and public health emergency assessments. It will also facilitate tracking of progress of DRM efforts in the country. Prior Action #3: The Government has strengthened delivery of the community-based DRM related TVET program through the issuance of a Technical Education and Skills Development Authority (TESDA) Circular. TESDA Circular No. 11 recognizes the challenges related to disaster response and emphasizes the importance of skills and livelihood training for disaster response and recovery as part of its overall program. Under its community-based training program, TESDA will train and organize community trainers and individuals on critical skills needed during disaster response, rehabilitation, and recovery. The program will specifically target the poor and marginalized groups who cannot access formal training programs. TESDA will deploy a pool of community trainers to provide basic skills training to disaster- affected communities. TESDA is prioritizing support to the 24 vulnerable provinces. In addition, TESDA is expanding its program to public health-related training to help manage the impacts of the COVID-19 pandemic and other future health emergencies in the communities. Pillar B. Strengthening the Resilience of Government Programs in Key Sectors Prior Action #4: The Government has mandated the inclusion of CCA-DRR measures in all projects through the Republic 5 Prior to the issuance of the revised guidelines, access to the NDRRM Fund was on a per project basis where Office of Civil Defense (OCD) reviews the necessity and relevance of project proposals for funding. Projects were assessed based on the inclusion of the Post-Disaster Needs Assessment (PDNA) report that is usually completed after three to five months post-disaster. In the absence of a PDNA, OCD conducts field validation to evaluate the proposed request from LGUs. Such processes would take months to a year to get approved. The NDRRM Council noted that based on the evaluation of the NDRRM Fund, majority of the funds were used for (regular) pre-disaster programs and projects. Page 6 of 11 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) Act 11518 (General Appropriations Act of 2021). The Government adopted policies to improve the tracking and prioritization of CCA-DDR spending in the budget. Section 37 of Republic Act 11518 (General Appropriations Act of 2021) mandates all agencies of the government to incorporate CCA-DRR measures in all projects. Section 38 of the Act further mandates all NGAs and LGUs to tag their budgets for climate change adaptation and mitigation to guide the formulation of subsequent budgets to mainstream adaptation in the national and local development process. Consistent with the General Appropriations Act, the Department of Budget and Management (DBM) National Budget Memorandum No. 141 included financing new or expanded projects relating to climate and disaster resilience in the Budget Priorities Framework to reduce risks and shocks in the long term. The DBM Local Budget Memorandum No. 82 further mandated all LGUs to identify, tag, and prioritize their respective climate change programs, projects, and activities. It required all LGUs to submit their climate change-tagged Annual Investment Plans, Local Climate Change Action Plan, Local DRRM Plan, Devolution Transition Plan, and Local Expenditure Program by 2024. Prior Action #5: The Government has adopted Climate Risk Vulnerability Assessment (CRVA) to integrate climate risk management and resilience in the Provincial Commodity Investment Plans (PCIPs) through a Department of Agriculture (DA) memorandum. The Government has mandated the completion of CRVA as a standard assessment and targeting tool for DA's investment projects in all provinces in the Philippines, through a DA Memorandum. In May 2021, the CRVA-PCIP protocol was incorporated in the Enhanced Operations Manual of the Philippine Rural Development Project (PRDP), DA’s flagship project for rural development that aims to establish a modern, value chain-oriented and climate-resilient agriculture and fisheries sector. It provides essential infrastructure, facilities, technology, and information to raise incomes, productivity, and competitiveness in targeted areas in partnership with LGUs and the private sector. PRDP is supporting the integration of CRVA in the PCIPs to strengthen its interventions in the commodity value chain by considering climate-related information and risk profile as basis for identifying climate resilient interventions and risk adaptation measures. The PCIPs serve as basis for identifying essential climate-resilient infrastructure investments and enterprise development initiatives that can be funded by PRDP with counterpart funding from the LGUs.6 E. Implementation Institutional and Implementation Arrangements The DOF is the main liaison with the World Bank on budget support operations, including the proposed operation . However, policy dialogue and monitoring and evaluation of the program will be supported in close collaboration with NDRRM Council – Department of Finance (DOF), Office of Civil Defense, DBM, National Economic and Development Authority, Department of Science and Technology, Department of Interior and Local Government, TESDA, Department of Environment and Natural Resources, Climate Chance Commission and Department of Agriculture. The Government has designated the DOF International Finance Group as the WB’s main counterpart in the policy dialogue and monitoring of the operation. Indicators selected to monitor progress toward achievement of PDO reflect defined areas of action and correspond to the expected outcomes of the prior actions. They include an appropriate mix of specific qualitative and quantified 6 https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS?locations=PH Page 7 of 11 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) targets, which are attributable, relevant, and time-bound, and are expected to be sufficient to enable effective monitoring of the project’s achievement of the PDO. Moreover, the Pillars and result indicators in the policy framework are aligned with government priorities. Since the policy targets are aligned with regular programs of the relevant agencies, their reporting mechanisms will be used. F. Poverty and Social Impacts, and Environmental, Forests, and Other Natural Resource Aspects Poverty and Social Impacts The proposed operation will continue to support Government efforts to mitigate the poverty impacts of climate change, natural disasters, and disease outbreaks. Under Pillar 1, mainstreaming the use of pre-disaster recovery and reconstruction plan as a requirement for accessing the NDRRM Fund is expected to contribute to poverty reduction by speeding up rehabilitation and recovery of communities affected by disasters. Improved availability, access and use of baseline data is also expected to help the affected communities to be better prepared and resilient from these shocks. It will also help develop pro-poor CCA-DRR interventions, both at the local and national levels. Specific activities under Prior Actions 1, 2, 3, and 4 are also geared towards supporting the vulnerable LGUs. Government audit report has shown that there is a significant imbalance between the risk exposure of the poor and vulnerable LGUs and the availability of resources to prevent and cope with the adverse impacts of disasters. LGUs that face higher vulnerability to climate change and natural disasters fall under the lower income categories7. Prior Action 5 will also contribute to poverty reduction by supporting reforms that would benefit the farmers, fisherfolks, and rural dwellers. Poverty incidence in the agricultural and fishery sector is highest in the Philippines. The CAT-DDO 4 will support actions geared towards narrowing the existing gender disparities in Government skills development programs. Under Prior Action 3, the CAT-DDO 4 will support initiatives that will (i) enhance the design of TVET courses to meet the specific skills and learning needs of women; and (ii) narrow the gender gap by increasing women participation in male-dominated skills development courses (e.g., construction, masonry, etc.). Activities that facilitate engagement of women’s groups in disaster response, rehabilitation and recovery and management of disease outbreaks that specifically target women and address their specific needs will also be supported. Environmental, Forests, and Other Natural Resource Aspects The CATDDO 4 supports reforms that have an overall positive impact to the natural environment and contribute to the resilience of ecosystems, communities, the built environment, and industries. The reforms will prepare the Government to mobilize and access resources for climate and disaster resilience, generate information for evidence- based CCA-DRR planning and investment programming, promote transparency and accountability in public spending, and support sectoral programs that address the social and economic challenges brought by the COVID-19 pandemic. Key investment areas in the Risk Resiliency Program are expected to contribute to increased resilience of vulnerable communities and critical infrastructure; adequate supply of clean air, water, and other natural resources; enhanced knowledge and access to information and improved institutional capacities. The projects and activities implemented in the priority provinces including forest development, rehabilitation, maintenance and protection, biodiversity protection, coastal, watershed and wetlands assessments, small water impounding systems, and forest land use planning could have temporary negative environmental impacts such as construction-related pollution. However, the scale is likely to be limited and the associated risks can be readily mitigated. 7 Commission on Audit. 2014. Assessment of Disaster Risk Reduction and Management at the Local Level. Page 8 of 11 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) The Philippines has emphasized its orientation towards climate change and disaster resilience. The National Climate Chance Action Plan assesses the country’s situation with regard to climate change risks and outlines an agenda for adaptation and mitigation for 2011 to 2028. It prioritizes key thematic areas like food security, and climate smart industries and services that this operation supports. The submission of the country’s Nationally Determined Contribution to the United Nations Framework Convention on Climate Change on April 15, 2021 highlights the national development objectives and priorities including the transformation of its socio-economic sectors towards climate and disaster-resilient and low-carbon economy. The Government has environmental regulations in place that will help address the potential environmental impacts associated with the investment programs. Essential elements of good environmental assessment practice are outlined in the Philippine Environmental Impact Statement System (PEISS), which includes screening, scoping, environmental and social impact assessment, independent review, public participation, disclosure, and monitoring. Investment projects covered under the PEISS requires securing either an Environmental Compliance Certificate before implementation or a certificate of non-coverage. More importantly, such non-coverage is not an exemption from compliance with other environmental laws and government permitting requirements. G. Risks and Mitigation The overall risk rating for the proposed operation is Moderate. The most relevant risks that could affect the achievement of the program development objective are macroeconomic risks, political and governance risks, and institutional capacity for implementation. While these are considered Substantial, the overall risk rating is Moderate, as the Government has shown strong leadership in pursuing DRM reforms over the last decade. With support from CAT- DDO 1 and 2 and DRM-DPL3, the Government has established a good track record of delivering results. All other risks associated with sector strategies, program design, fiduciary, social and environmental, and stakeholders are rated Moderate. Macroeconomic risks are rated Substantial given the prolonged impact of the COVID-19 pandemic that may delay economic recovery and exacerbate the country's fiscal space. While the Government's vaccination effort has steadily progressed, the increased incidence of COVID-19 infection due to the emergence of new and more infectious variants may extend the imposition of stricter containment measures, resulting in weak consumer and business confidence that could dampen the prospects of a swift economic recovery. The generation of public revenues may thus be suppressed and may constrain the fiscal space to support economic growth. The narrower fiscal space risks the funding of programs such as the DRM-related TVET or the LGU’s capacity building on data collection and management, which are instrumental to the achievements of outcomes in this operation. To mitigate the impact of the crisis and maintain macroeconomic and fiscal stability, the Government is taking necessary measures. The authorities are committed to fiscal consolidation over the medium term with interventions to raise public revenues and temper the growth of public expenditures. The central bank, committed to its inflation-targeting objective, also maintains a flexible exchange rate regime and keeps sizable foreign reserves on monetary policy. Political and governance risks are rated Substantial. The Government has shown strong leadership and commitment in advancing the DRM reform agenda. Progress over the last decade in carrying out reforms and investments to make the country more resilient to environmental and climate risks and natural disasters has been substantial. Many of the reforms were carried out with support from previous Bank-supported operations. However, the national and local elections in May 2022 may slow down the pace of implementation of policy reforms proposed under this CAT-DDO4. This risk will be mitigated by the strong legal foundation of the DRM reforms and by continuing to support to the DOF in Page 9 of 11 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) leading the implementation of the DRM reforms and convening oversight and line agencies to continue to the policy dialogue at both the political and technical levels. Residual risks remain even after mitigation measures are put in place. Risks relating to Institutional capacity for implementation and sustainability are considered Substantial. Some LGUs may have limited technical capacity or overstretched capacity as they carry out efforts to respond and recover from the impacts of COVID-19 pandemic. The proposed operation will continue the implementation of DRM reforms at the local level. LGUs may be unable or unwilling to comply with policy reforms. To mitigate the risks, the Bank in collaboration with the NGAs will continue to provide technical assistance and capacity building to LGUs. Residual risks remain Substantial even with mitigation because of the uncertainties brought about by the COVID-19 pandemic and its variants, full implementation of the Mandanas Ruling, and conduct of the general elections in 2022. Other Risks associated with the resurgence of COVID-19, including the highly infectious Delta variant, are also considered Substantial. Surges in cases of new COVID-19 variants are happening and threatening to overwhelm the country’s health system. The Government has imposed restrictions on mobility, particularly in Metro Manila and major cities across the country, causing substantial disruptions in economic activities, substantial loss of employment and income, and stalling the country’s economic recovery. The Government is taking measures to speed up the vaccination roll out to flatten the infection curve. Despite all these measures, the patterns observed worldwide and, in the . Philippines, have been sporadic and difficult to control. Hence, the Substantial rating. CONTACT POINT World Bank Lesley Jeanne Yu Cordero, Benedikt Lukas Signer Senior Disaster Risk Management Specialist Borrower/Client/Recipient Republic of the Philippines Maria Edita Tan Assistant Secretary meztan@dof.gov.ph Mark Dennis Joven Undersecretary mdjoven@dof.gov.ph Implementing Agencies Page 10 of 11 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) Department of Finance Mark Dennis Joven Undersecretary mdjoven@dof.gov.ph Maria Edita Tan Assistant Secretary meztan@dof.gov.ph FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Task Team Leader(s): Lesley Jeanne Yu Cordero, Benedikt Lukas Signer Approved By APPROVALTBL Country Director: Ndiame Diop 27-Aug-2021 Page 11 of 11