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: 6 | ARCHIVED on 25-Oct-2018 | ISR34085 | Implementing Agencies: Department of Finance, Department of Finance 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-2021 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 1 . On September 17, 2018, the World Bank received a request signed by the Secretary of Finance, on behalf of the Republic of Philippines, for renewal of the drawdown period of the operation and extension of the loan Closing Date from September 30, 2018 to September 30, 2021. (This was the first renewal request[1] for the CAT-DDO2 and, at the time of the request, the undisbursed balance was US$ 497.5 million). 2 . Drawdown. The trigger for drawdown of the CAT-DDO is that a State of Calamity exists in the Borrower’s territory as a result of a natural disaster, which has been declared by the President through a Proclamation of Calamity duly published in the Official Gazette. On September 25, 2018, the President issued a Proclamation[2] declaring a State of Calamity due to widespread impact in the agricultural sector, substantial damage to infrastructure, and deaths in the northern regions (Ilocos, Cagayan Valley, Central Luzon, and the Cordillera Administrative Region). According to the National Disaster Risk Reduction and Management Council (NDRRMC)[3], 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 PhP 33.6 billion (approximately US$ 623 million). 3 . The Bank subsequently received a request for a drawdown on September 27, 2018, and processed a disbursement of US$ 496,256,250, on 10/25/2018 Page 1 of 6 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) the basis of the abovementioned Proclamation of a State of Calamity by the President. 4 . Renewal. The Notice of Extension of the loan closing date was issued on September 29, 2018. The renewal of the CAT-DDO enables continued dialogue on key policy and institutional actions to increase the country’s physical and financial resilience to natural disasters. After capitalization of the Loan renewal fee (US $ 3,110, or 0.25% of the undisbursed balance of 1,243,750 as of September 28, 2018) , the amount available for withdrawal will be US$ 1,240,640. [1] The three-year drawdown period of the CAT-DDO instrument may be renewed up to four times, for a total deferment of 15 years. [2] https://www.officialgazette.gov.ph/2018/09/25/proclamation-no-593-s-2018/ [3]http://ndrrmc.gov.ph/attachments/article/3437/Sitrep_No_51_re_Preparedness_Measures_and_Effects_of_TY_OMPONG_IN_MANGKHUT_as_of _6AM_30SEP2018_to_12NN_01OCT2018.pdf [1] https://www.officialgazette.gov.ph/2018/09/25/proclamation-no-593-s-2018/ 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 Development of Socio- Socio-Economic Methodology economic Resilience Resilience Methodology developed and methodology developed and to be applied in Value Not developed completed and applied in the Midterm planning and application in Philippine Update of the Philippine public Development Plan Development Plan (2019 investment agreed release). programming 10/25/2018 Page 2 of 6 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) Date 31-May-2015 01-Mar-2018 01-Mar-2018 30-Sep-2018 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 Proposed “Philippine Building Act of 2018” has been finalized by Revisions Proposed “Philippine the National Building integrating Building Act of 2018” Code Development disaster risk has been filed in the Value Not developed Office and approved by reduction Congress of the Department of Public measures are Philippines as House Bill Works & Highways for developed for 7804 endorsement to the the NBCP Congress of the Philippines Date 31-May-2015 01-Mar-2018 21-Sep-2018 30-Sep-2018 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 81 PCIPs developed 81 PCIPs developed developed and 47 PCIPs developed and Value and approved; 72 and approved; 72 under approved; 72 approved under implementation implementation under implementation Date 09-Jul-2015 01-Mar-2018 01-Mar-2018 30-Sep-2018 10/25/2018 Page 3 of 6 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 Draft policy framework Policy approved in-principle framework by the Housing and Post-Disaster Shelter formulated and Urban Development Framework formulated endorsed to Value Not formulated Coordinating Council - and endorsed to Social Social Management Development Committee Development Committee, – Technical Board Committee – Chairperson and the Technical Secretary General Board Date 31-May-2015 25-Jan-2018 21-Sep-2018 30-Sep-2018 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 Vulnerability for 16 priority cultural Vulnerability assessment heritage sites; assessment completed completed for 5 methodology adopted by for 18 sites and priority cultural the Department of assessment heritage sites Tourism, Tourism methodology adopted and Value 2 sites assessed Infrastructure and by the Intramuros assessment Enterprise Zone Administration and the methodology Authority, and Tourism Infrastructure adopted in the Intramuros and Enterprise Zone Philippine Administration. Authority Standards for Philippine Standards for Conservation Conservation are still under development. Date 31-May-2015 19-Sep-2017 01-Mar-2018 30-Sep-2018 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 Joint catastrophe risk Long term insurance program Joint catastrophe risk program is piloted by DOF for 25 insurance program Value Not developed developed with provinces and relevant developed with 25 LGUs 10 LGUs national government participating participating agencies Date 31-May-2015 28-Jul-2017 28-Jul-2017 30-Sep-2018 10/25/2018 Page 4 of 6 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 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 The Department of Development of DRFI Public Works and strategies ongoing by Highways, the the Department of Department of Public Works and Education, the 2 agencies Highways, the Department of Health, have developed Department of Value Not developed and the National and piloted Education, and Irrigation Agency have their DRFI Intramuros developed and piloted strategy Administration. Pilot their DRFI strategies. completed through the Pilot completed through joint catastrophe risk the joint catastrophe risk insurance program insurance program. Date 31-May-2015 01-Mar-2018 21-Sep-2018 30-Sep-2018 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 established, and Design review implementation plan completed and work finalized by the Design Value Not established plan for implementation Department of Finance established is under development and Insurance Commission Date 31-May-2015 01-Mar-2018 21-Sep-2018 30-Sep-2018 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 developed and established by Program operations Program Department of Social Value Not developed manual under developed and Welfare and development commenced Development Administrative Order Date 31-May-2015 01-Mar-2018 21-Sep-2018 30-Sep-2018 10/25/2018 Page 5 of 6 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  Catastrophe risk insurance database template updated and adopted by the Insurance Commission. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Updated template Updated template adopted through adopted through Insurance Commission Insurance Commission Updated Value Not updated Circular Letter No. Circular Letter No. 2017- template 2017-56 on 56 on adopted Catastrophe/Property Catastrophe/Property Insurance Reports Insurance Reports Date 31-May-2015 31-Dec-2017 31-Dec-2017 30-Sep-2018 Overall Comments 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 0.00 498.76 1.24 100% 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-2021 Tranches Restructuring History There has been no restructuring to date. Related Operations There are no related projects. 10/25/2018 Page 6 of 6 Public Disclosure Copy