Department of Finance (DoF)

FOLLOWING a productive dialogue with development partners, the Philippine government through the Special National Public Reconstruction Commission (SNPRC) and the Philippine Disaster Recovery Foundation (PDRF) of the private sector expressed confidence that the country will be able to meet the needed $4.4 billion for recovery and reconstruction arising from the devastation caused by typhoons Ondoy and Pepeng over the short- to medium- term.

This was the required amount identified in the recently completed Post-Disaster Needs Assessment (PDNA) that was prepared in response to the back-to-back disasters by a team of local and international experts from Philippine government agencies, private sector, civil society, and development partners including the Asian Development Bank, the United Nations and the World Bank Group.

In her address to the participants of the 2nd Public-Private Sector Dialogue on Post-Disaster Assistance, President Gloria Macapagal-Arroyo said: “As we prepare to capture the opportunities presented by the private-public sector reconstruction partnership and the resources it is tapping in this session to recover from the recent natural calamities, we must not lose sight of our longer-term economic reforms and the very real pain many of our poor have sustained as a result of the global downturn.”

For his part, Finance Secretary and SNPRC Chairman Gary Teves said: “We are pleased with the broad indication of support by our development partners that reached $3 billion. Together with available funding from the public sector of about $2 billion plus private sector efforts through the PDRF, we are confident that we can have enough funds to meet the requirements for the country’s recovery and reconstruction.”

Secretary Teves pointed out that bulk of the public sector funding requirement would come from government financial institutions (GFIs) such as the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP), and government-owned and –controlled corporations (GOCCs) such as the Home Mutual Development Fund or PAG-Ibig Fund and the National Development Corp. (NDC).

“We provided a total of P12 billion in home calamity loans…We also relocated families who were displaced and rendered homeless by the typhoons and have nowhere to go back to. We relocated them in safer areas following our in-city/in-town, near city/near town relocation policy,” Vice President Noli de Castro said in his remarks.

In response, Secretary Teves said that: “The support from GFIs and GOCCs is a welcome boost to our recovery and reconstruction efforts as we recognize that the fiscal space of the national government is getting tighter due to the revenue-eroding measures and the impact of the global financial crisis and the economic slowdown on our revenue collection.”

PDRF Chairman Manny Pangilinan assured that the private sector will contribute its share in recovery and reconstruction through sustainable projects that are aimed at mitigating disaster risk and improving disaster preparedness.

"We are looking at this task of rebuilding after the storms as a window of opportunity to address difficult and longstanding issues in the country in order to reduce disaster risk and improve the quality of life of Filipinos," Mr. Pangilinan said.

PDRF Executive Director Rene Meily said the PDRF is tapping private sector participation in the following projects:
• consolidation and updating of an integrated master plan for flood mitigation and management;
• helping install an effective early warning system through cooperation with PAGASA and the Manila Observatory;
• the reforestation of the Marikina Watershed, including the development of sustainable agro-forestry livelihoods for upland communities;
• housing, resettlement and livelihood development for informal settlers along Pasig River and the Napindan and Manggahan waterways; and
• the provision of financing for private businesses, particularly SMEs and micro-enterprises adversely affected by the calamities.

PDRF Co-Chair Cebu Archbishop Ricardo Cardinal Vidal said that civil society organizations and church groups will be vigilant in ensuring transparency and accountability in the utilization of funds for recovery and reconstruction.

“I am very happy and hopeful that despite the many challenges facing the country, there are many people, including those from civil society organizations and various church groups, who are willing to help out. We vow to be good and responsible stewards of the resources for recovery and reconstruction entrusted to us,” Cardinal Vidal said.

SNPRC Secretary General Ricardo Saludo added that a transparent monitoring system would be in place to track the progress of the different projects.

“The government is already moving to address priority needs in the PDNA, and we are ready to scale up and augment our initiatives as our resources and alliances will allow,” Secretary Saludo said.

In response to the initiative of the PDRF to improve access to credit of micro and small businesses, the public commission and the private sector foundation are creating a working group to be composed of representatives from the Bankers Association of the Philippines, the various industry associations, and our development partners to identify appropriate financing packages for this purpose.

A working group on disaster risk mitigation will also be set-up to arrange financing for a comprehensive and integrated disaster management strategy. “We are not just implementing flood control projects, but we are also pursuing long term disaster risk management projects, such as the restoration of the Marikina watershed and the rehabilitation of the Pasig River, together with the private sector,” Secretary Teves said.

“In seeking support, the Public Commission and our private sector partners assure the highest transparency in the management of funds and projects,” said Secretary Saludo.

World Bank Philippines Country Director Bert Hofman expressed appreciation of the government’s commitment to transparency and accountability on recovery and reconstruction spending. “We are looking forward to supporting the government as it implements a system of expenditure tracking and reporting, civil society monitoring, and accountability that maximizes the probity and effectiveness of funds spent,” he said.

For her part, United Nations Resident Coordinator Jacqui Badcock said that UN support would extend beyond relief efforts as their flash appeal would also address some recovery needs.

Building on long-standing experience on disaster risk reduction and management, Dr. Badcock highlighted three ongoing programs and indicated that these had been further developed to address the needs presented in the PDNA.

The Philippine government and the private sector foundation expressed their appreciation for the development partners’ prompt response to the request for dialogue on post-disaster assistance.

They also thank the development partners and government agencies concerned for their hard work and significant efforts to come up with the PDNA despite the short time given.

“The PDNA provided a meaningful picture of the total damages, losses, and needs arising from typhoons Ondoy and Pepeng. The report would serve as our guidepost in crafting a comprehensive recovery and reconstruction strategy as well as an integrated disaster management strategy to reduce the impact of future disasters on our country and our people,” Secretary Teves said.