Public Disclosure Copy The World Bank Implementation Status & Results Report Second Disaster Risk Management Development Policy Loan with a CAT-DDO (P155656) Second Disaster Risk Management Development Policy Loan with a CAT-DDO (P155656) EAST ASIA AND PACIFIC | Philippines | Social, Urban, Rural and Resilience Global Practice Global Practice | IBRD/IDA | Development Policy Lending | FY 2016 | Seq No: 3 | ARCHIVED on 06-Apr-2017 | ISR27590 | Implementing Agencies: Key Dates Key Project Dates Bank Approval Date:22-Dec-2015 Effectiveness Date:15-Apr-2016 Planned Mid Term Review Date:-- Actual Mid-Term Review Date:-- Original Closing Date:30-Sep-2018 Revised Closing Date:30-Sep-2018 Program Development Objectives Program Development Objective (from Program Document) The development objective of the proposed project is to enhance the technical and financial capacity of the Government of the Philippines to reduce disaster risk and manage the socio-economic and fiscal impacts of natural disasters. PHRPDODEL Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Moderate  Moderate Implementation Status and Key Decisions Implementation is progressing under the leadership of the Department of Finance (DOF). The DOF and the Technical Working Group are implementing planned activities, including: 1 . The public launch and consultation, convened by NEDA, of the pilot version of the Socio-Economic Resilience planning methodology. 2 . Completion of regional and national stakeholder consultations, by the Department of Public Works and Highways, on revisions to the National Building Code of the Philippines to integrate disaster risk reduction and climate adaptation. 3 . Implementation of 71 Provincial Commodity Investment Plans (developed using the expanded Vulnerability and Suitability Assessment) under the Philippine Rural Development Program. 4 . Development by the Housing and Urban Development Coordinating Council of a draft policy framework for post-disaster shelter assistance, now under consultation. 5 . Completion of Multi-hazard vulnerability assessments of priority cultural heritage sites by the Department of Tourism. 6 . Preparation of the joint LGU Disaster Resilience Insurance Facility, including developing the mechanism for premium co-financing. 4/6/2017 Page 1 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Disaster Risk Management Development Policy Loan with a CAT-DDO (P155656) 7 . Preparation of a parametric catastrophe insurance mechanism for national government assets, as a core feature of line agencies' disaster risk financing and insurance strategies. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  Substantial  Substantial  Substantial Macroeconomic  Low  Low  Low Sector Strategies and Policies  Moderate  Moderate  Moderate Technical Design of Project or Program  Low  Low  Low Institutional Capacity for Implementation and Sustainability  Moderate  Moderate  Moderate Fiduciary  Moderate  Moderate  Moderate Environment and Social  Moderate  Moderate  Moderate Stakeholders  Low  Low  Low Other  --  --  -- Overall  Moderate  Moderate  Moderate Results Results Indicators PHINDIRITBL  A methodology for national-level risk-informed planning has been developed and applied by the National Economic and Development Authority in planning and public investment programming. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Methodology developed and Pilot version of the applied in Methodology is under Value Not developed Methodology publicly planning and development launched public investment programming Date 31-May-2015 30-Sep-2016 05-Apr-2017 30-Sep-2018 Comments The Socio-economic Resilience Planning methodology assesses the benefits of resilience-building interventions in different provinces in the Philippines, including strengthening and retrofitting buildings and infrastructure, early warning systems, improved access to banking, insurance policies, and social protection systems that could help people better reduce their underlying risk, prepare for disasters, and recover from shocks. The methodology will be used as a tool to complement the DRM and resilience policies and programs at the national and local levels, and bring a strong resilience lens to the Government’s long-term vision under Ambisyon 2040 and the Philippine 4/6/2017 Page 2 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Disaster Risk Management Development Policy Loan with a CAT-DDO (P155656) Development Plan (PDP 2017-2022). Further customization of the Socio-economic Resilience Planning methodology is ongoing to support the development of a baseline and monitoring of the Philippine Development Plan target “Individuals and communities will be more resilient”, by providing a direct measure of provincial, regional, and national-level socio-economic resilience of the poor and non-poor. The forthcoming provincially-representative Family Income and Expenditure Survey will allow for a baseline to be developed for 2018, monitored at the PDP Mid-term Update, and at the end of the planning period in 2022. PHINDIRITBL  Disaster risk reduction measures are integrated in revisions to the National Building Code of the Philippines (NBCP) developed by the Department of Public Works and Highways. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Revisions integrating National and regional disaster risk Draft revisions under Value Not developed consultations on draft reduction consultation revisions completed measures are developed for the NBCP Date 31-May-2015 24-Oct-2016 05-Apr-2017 30-Sep-2018 Comments The public consultation process was launched in March 2016, followed by an extensive series of cross-sectoral Focus Group Discussions. Four regional stakeholder consultations (Northern Luzon, Southern Luzon, Visayas, and Mindanao) were convened by DPWH from September through December 2016, followed by a national stakeholder consultation in January 2017. The consolidated set of proposed revisions (covering: (i) general design requirements, (ii) sustainable sites, (iii) building materials, (iv) building services and sustainability, and (v) legal and institutional arrangements for building code compliance) is scheduled for review and finalization by DPWH in April 2017. PHINDIRITBL  Provincial Commodity Investment Plans (PCIPs) developed using the expanded Vulnerability and Suitability Assessment (eVSA) tool are approved by the Department of Agriculture under the Philippine Rural (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 80 PCIPs 71 PCIPs developed developed and 47 PCIPs developed and 69 PCIPs developed Value and under approved; 72 approved and approved implementation under implementation Date 09-Jul-2015 17-Oct-2016 05-Apr-2017 30-Sep-2018 4/6/2017 Page 3 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Disaster Risk Management Development Policy Loan with a CAT-DDO (P155656) PHINDIRITBL  Policy framework for post-disaster shelter assistance (through recovery and reconstruction phases) formulated by the member agencies of the Social Development Committee and endorsed to the Social Deve (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Policy framework formulated and Draft policy framework endorsed to Draft policy framework Value Not formulated developed and under Social under development consultation Development Committee – Technical Board Date 31-May-2015 24-Oct-2016 05-Apr-2017 30-Sep-2018 Comments Under the convening authority of the Housing and Urban Development Coordinating Council (HUDCC), a first draft of the policy framework was developed from September through December 2016, together with key shelter agencies and other stakeholders. HUDCC will convene and facilitate further consultations to prioritize key policy actions and the relevant mechanisms/instruments for implementation. PHINDIRITBL  Multi-hazard vulnerability assessments of priority cultural heritage sites completed by the Department of Tourism and assessment methodology adopted in the Philippine Standards for Conservation. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Vulnerability assessment completed for 5 priority cultural heritage sites Vulnerability and Value 2 sites assessed 18 sites assessed assessment completed assessment for 18 sites methodology adopted in the Philippine Standards for Conservation Date 31-May-2015 30-Sep-2016 05-Apr-2017 30-Sep-2018 Comments In parallel to adoption in the Philippine Standards for Conservation (which are under development), the National Commission for Culture and the Arts' will adopt the Multi-Hazard Vulnerability Assessment (MHVA) methodology through a resolution to be passed in the April 2017 Board meeting. This will allow for the MHVA to serve as a reference for the cultural agencies’ budget preparations. 4/6/2017 Page 4 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Disaster Risk Management Development Policy Loan with a CAT-DDO (P155656) PHINDIRITBL  Joint catastrophe risk insurance program for Local Government Units (LGUs) developed by the Department of Finance. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Institutional structure for Institutional structure the Local Disaster Long term for the Local Disaster Resilience Insurance program is Resilience Insurance Facility, product design, Value Not developed developed with Facility, as well as and premium co- 10 LGUs product design, are financing mechanisms participating under consultation are being developed for 17 provinces Date 31-May-2015 21-Oct-2016 05-Apr-2017 30-Sep-2018 Comments Following the approval of a PhP 1 billion allocation in the 2017 General Appropriations Act (under the National Disaster Risk Reduction and Management Fund) for the payment of insurance premiums for government assets, a Joint Memorandum Circular (Department of Finance, Department of Budget and Management, and other stakeholders) is under consultation for the allocation and use of: (I) PhP 500 million for insurance coverage of national government assets, and (ii) PhP 500 million for parametric insurance coverage for provinces with high risk from tropical cyclones under the Local Disaster Resilience Insurance Facility. PHINDIRITBL  Number of line agencies that have developed and piloted their Disaster Risk Financing and Insurance (DRFI) strategy. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 2 agencies Scope of DRFI Strategy have developed Value Not developed Not developed developed for 2 line and piloted agencies their DRFI strategy Date 31-May-2015 21-Oct-2016 05-Apr-2017 30-Sep-2018 Comments The Departments of Public Works & Highways (DPWH) and Education (DepEd) have been identified as priority line agencies under the Joint Memorandum Circular for the allocation and use of PhP 500 million for insurance coverage of national government assets. The placement of such insurance coverage (targeted for May 2017) is a fundamental aspect of these agencies' DRFI strategies. 4/6/2017 Page 5 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Disaster Risk Management Development Policy Loan with a CAT-DDO (P155656) PHINDIRITBL  Design of property catastrophe risk insurance pool for homeowners established by the Department of Finance and the Insurance Commission. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Design is under Design Value Not established Not established development established Date 31-May-2015 21-Oct-2016 05-Apr-2017 30-Sep-2018 Comments The Department of Finance (DOF) and the Insurance Commission are working with the Philippine Insurers and Reinsurers Association (PIRA) on the establishment of a catastrophe risk insurance facility for homeowners. The DOF-led inter-agency committee on disaster risk financing and insurance has included the establishment of the catastrophe risk insurance pool for homeowners and SMEs in its agenda. PHINDIRITBL  Program developed and commenced for post-disaster emergency income support by the Department of Budget and Management, Department of Social Welfare and Development, and the Department of Finance. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Program Value Not developed Not developed Not developed developed and commenced Date 31-May-2015 21-Oct-2016 05-Apr-2017 30-Sep-2018 Comments Technical assistance is ongoing to support the Department of Social Welfare and Development in developing options for the establishment of an emergency income support program, including the technical and operational aspects of establishing a scalability mechanism as well as to establish the linkages to the national disaster risk financing and insurance strategy. PHINDIRITBL  Catastrophe risk insurance database template updated and adopted by the Insurance Commission. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Updated template Updated Updated template Value Not updated developed and under template developed industry consultations adopted Date 31-May-2015 21-Oct-2016 05-Apr-2017 30-Sep-2018 Overall Comments 4/6/2017 Page 6 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Disaster Risk Management Development Policy Loan with a CAT-DDO (P155656) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P155656 IBRD-85760 Effective USD 500.00 500.00 0.00 2.50 497.50 1% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P155656 IBRD-85760 Effective 22-Dec-2015 20-Jan-2016 15-Apr-2016 30-Sep-2018 30-Sep-2018 Tranches Restructuring History There has been no restructuring to date. Related Operations There are no related projects. 4/6/2017 Page 7 of 7 Public Disclosure Copy