Japan: Third UN World Conference on Disaster Risk Reduction, public forum ‘Step forward for building disaster resilience in the Philippines: Emerging strategies for disaster risk reduction and financing’

On March 17, the Japan International Cooperation Agency (JICA) jointly held a public forum with the World Bank on Disaster Resilience in the Philippines, at the Tohoku University Kawauchi-Kita campus, in Sendai.

Since Typhoon Yolanda in November 2013, the Government of the Philippines has strived to promote recovery and rehabilitation based on the “Build Back Better” concept to create a disaster resilient society. This forum provided the audience with a comprehensive view of the future role of disaster risk financing in building disaster resilience in the Philippines.

With approximately 70 participants, Megumi Muto, deputy director general of JICA’s Southeast Asia and Pacific Department and Olivier Mahul, program manager of the World Bank Disaster Risk Financing and Insurance Program moderated the forum. Rogelio Singson, secretary of the Department of Public Works and Highways (DPWH), Roberto Tan, national treasurer, Department of Finance (DOF), and Margarita Songco, deputy director-general of the National Economic and Development Authority (NEDA), made presentations along with other presenters.

Kiyoshi Kodera, vice president of JICA, opened the forum. He emphasized the important role of disaster risk financing in linking ex-ante investment and ex-post disaster recovery and rehabilitation, especially in the context of the Philippines, where large scale natural disaster occur with increased frequency. He also stated that in order to respond the respective needs of central government, local government, household, and the private sector, tailor-made design for each level is essential.

NEDA Deputy Director-General Margarita Songco, reported that since Typhoon Yolanda, the Philippine government has formulated Comprehensive Rehabilitation and Recovery Plan (CRRP) in accordance with the “Build Back Better” concept. She added that she personally inspected the storm surge barrier and temporary housing facilities in Kesennuma, where the Great East Japan Earthquake caused the serious damage in 2011. The visit reinforced her awareness that recovery and rehabilitation from a large natural disaster requires a lot of time and finance. She emphasized the importance of providing sufficient budget to priority projects in rehabilitation programs for the Philippines.

DPWH Secretary Rogelio Singson first described the natural disaster damage in the Philippines over the past 10 years, highlighting the particularly serious damage caused by Typhoon Yolanda in 2011. The estimated total funding requirement of CRRP is US$ 3.82 billion, which includes US$ 0.8 billion for infrastructure, US$ 1.72 billion for resettlement, US$ 0.7 billion for livelihood, and US$ 0.6 billion for social services. According to Secretary Singson, resettlement-related initiative is the biggest challenge of all. Even before the damage from Typhoon Yolanda, DPWH had been working to assess disaster risks and introduce disaster resilient infrastructure design. He emphasized that DPWH is further promoting ex-ante investment initiatives for disaster risk reduction.

LEYECO II General Manager Rosario Avestruz made a presentation on the situation of Leyte Island in the immediate wake of Typhoon Yolanda and reported on the quick recovery efforts of the power distribution network. LEYECO II suffered from damage amounting to 98 percent of its power distribution facilities. GM Avestruz showed the efforts of LEYECO II to restart the distribution of power, thereby conveying a powerful message describing the challenge of Build Back Better.

DOF National Treasurer Roberto Tan emphasized that Disaster Risk Financing strategy is essential to pursue both sustained economic growth of the Philippines as well as disaster risk reduction. He explained that a variety of initiatives is currently being reviewed. He further explained the overall strategy and approach towards three levels; namely, central government, local government and household levels. For central government, the reinforcement of contingent credit line functions consistent with disaster risk reduction plans is being developed. For local government, the pilot introduction of catastrophe risk insurance facility is being developed to improve insurance of public assets. And for household level, the introduction of insurance programs is considered, targeted to poor and vulnerable households as well as small and medium-sized enterprises for quick restoration of their livelihoods. He further emphasized that economic losses caused by natural disasters have increased in scale over the past few years, and in order to cope with the “New Normal”, it is important to make proper strategy combining ex-ante risk reduction investments and ex-post liquidity finance.

Following the presentation, Maria Palanca, senior vice president of the Government Service Insurance System (GSIS) reported on a draft plan for a disaster risk insurance facility program for local governments that is being reviewed in the Philippines.

In a panel session moderated by Olivier Mahul, program manager of the World Bank Disaster Risk Financing and Insurance Program, participants discussed the role of the private sector in disaster risk financing. Yoshiki Hiruma, DBJ director of Enterprise Resilience Rated Loan Program (BCM Rating), PIRA CEO Augusto Hidalgo, NEA Administrator Edita Bueno, LEYECO II GM Rosario Avestruz, and other participants took the floor. Administrator Bueno highlighted the importance of disaster risk financing in the power distribution sector of the Philippines in light of the damage from Typhoon Yolanda that is linked to several initiatives considered by the Philippine government. She also reported on a study for building disaster resilience targeting the Electric Cooperatives in the Philippines conducted with the support of JICA. The study includes the analysis on how could the scheme of DBJ BCM Rating be applied. PIRA CEO Augusto Hidalgo stated the importance of insurance as a tool for reducing disaster risks and poverty for households and SMEs. DBJ Director Hiruma emphasized that the reinforcement of disaster resilience can be achieved gradually through medium and long-term initiatives and investments for Business Continuity Management (BCM). In addition, he explained that the investments of BCM should be regarded not as cost but rather as value.

At the end of the forum, Ede Ijjasz Vasquez, senior director for the World Bank Social, Urban, Rural & Resilience Global Practice, presented a closing address. He stated that one of the world’s most advanced initiatives is being developed in the Philippines in the area of disaster risk reduction and financing with diverse approaches and actors.

JICA will continue to provide support in disaster risk reduction including disaster risk financing in the Philippines, in collaboration with the Government of the Philippines, the World Bank, and other stakeholders.

Speakers for the event
Presenters:
Mr. Kiyoshi Kodera, vice president, Japan International Cooperation Agency
Ms. Margarita Songco, deputy director-general, National Economic and Development Authority
Hon. Rogelio Singson, secretary, Department of Public Works and Highways
Ms. Rosario Cumpio-Avestruz, general manager, Leyte II Electric Cooperative
Mr. Roberto B. Tan, national treasurer, Department of Finance
Atty. Maria Obdulia Palanca, senior vice president, Government Service Insurance System
Mr. Yoshiki Hiruma, director of Enterprise Resilience Rated Loan Program (BCM Rating), Development Bank of Japan
Mr. Augusto P. Hidalgo, CEO, Philippine Insurers and Reinsurers Association
Ms. Edita S. Bueno, administrator, National Electrification Authority
Dr. Ede Ijjasz Vasquez, senior director, the Social, Urban, Rural & Resilience Global Practice, World Bank
*Names are listed in the order of presentations.

Moderators:
Dr. Megumi Muto, deputy director-general, Southeast Asia and Pacific Department, JICA
Dr. Olivier Mahul, program manager of Disaster Risk Financing and Insurance Program, World Bank