ADB approves $500-M loan to PH

ADB President Takehiko Nakao PHOTO FROM www.adb.org

The Asian Development Bank (ADB) has approved its half-a-billion dollar loan that aims to help survivors of Supertyphoon “Yolanda” who are in dire need of shelter, psychological care and livelihood.

The emergency loan, which was first announced days after the typhoon, was designed together with the Department of Finance (DOF) and will go on top of a $23-million grant from the Manila-based multilateral lender.

“A disaster of this magnitude can push families further into poverty,” ADB president Takehiko Nakao said.

“The speed of assistance is critical to ensure that loss of shelter, assets or livelihoods is only temporary, and quickly resolved with skills programs, income-generating activities, and high-quality rehabilitation and reconstruction,” he added.

The ADB noted that relief efforts were expected to continue well into 2014, posing a budget challenge for the Philippines, which had been struck by 23 typhoons by the end of October. Bohol and Cebu, two of Visayas’ major cities, are also still reeling from a 7.2 magnitude earthquake that struck in October.

The lender said it designed the emergency loan at “record speed” to help the people affected by the typhoon. Latest government figures showed that nearly 6,000 people were killed and two million others affected by the typhoon.

ADB’s funding will ensure the Philippine government is able to provide support in five priority areas, including shelter and reconstruction; power restoration; livelihoods and employment; resettlement and psychosocial care, and environmental protection.

The ADB earlier approved a $3-million grant, which was released last month, from the Asia Pacific Disaster Response Fund. Another $20-million grant from the Japan Fund for Poverty Reduction would be made available by mid-December, the bank said.

These, together with the $500 million, will support the government’s efforts in the immediate recovery phase.

“As the government moves into rehabilitation and reconstruction phases, we stand ready to offer substantive additional support to implement the Yolanda Recovery and Rehabilitation Plan,” ADB vice president for East Asia, Southeast Asia and Pacific countries Stephen Groff said.

“To immediately supplement the first phase of support, we are designing a community-driven development project that will help rebuild communities and assist reconstruction in the affected areas,” he said.