Financing post disaster reconstruction in the Philippines

Abstract

In the last decade, natural disasters in the Philippines have resulted in significant damage of physical assets. For instance, recent Typhoons Lawin (Haima) and Nina (Nockten) and the Surigao earthquake, all of which occurred within just five months, recorded post disaster reconstruction needs1 of about PHP 32 billion (OCD 2017). Meanwhile, Typhoon Yolanda (Haiyan) alone in 2013 has total estimated damages of PHP 571 billion, of which PHP 214 billion was needed for postdisaster reconstruction (NEDA 2013). This amount can be higher because the reconstruction has to incorporate quality improvements and the adoption of disaster-resilient standards. If not effectively managed, such financial requirement can have adverse impact on government fiscal position and consequently to development planning and economic growth. This Policy Note examines the government schemes for financing post disaster reconstruction in the country. It also presents recommendations that policymakers should consider in improving post disaster reconstruction financing.