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: 5 | ARCHIVED on 08-Mar-2018 | ISR31590 | 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-2018 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 Implementation is progressing under the leadership of the Department of Finance. The DOF and the Technical Working Group are implementing planned activities, including: 1 . Development of a “Socio-economic Resilience Index” by NEDA, using the Socio-economic Resilience methodology. National and regional indices using data from the 2015 Family Income and Expenditure Survey have been developed. 2 . Completion and endorsement by the DPWH (Legal Af draft 'Philippine Building Act', integrating disaster risk reduction and climate adaptation. 3 . Implementation of 72 Provincial Commodity Investment Plans (developed using the expanded Vulnerability and Suitability Assessment) under the Philippine Rural Development Program. 4 . Development by the Housing and Urban Development Coordinating Council of a draft policy framework for post-disaster shelter assistance, to be adopted in the NEDA Disaster Recovery Framework. 5 . Rollout of the Multi-hazard vulnerability assessment methodology for priority cultural heritage sites by the Department of Tourism, Tourism Infrastructure and Economic Zone Authority, and the Intramuros Administration. 6 . Development of the implementation plan for the long-term Disaster Resilience Insurance Facility, based on experiences from the ongoing 3/8/2018 Page 1 of 7 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) parametric insurance pilot. 7 . Development of design for the proposed Philippine Catastrophe Insurance Pool. 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 Pilot version of the Methodology Methodology publicly Development of Socio- developed and launched and Socio- economic Resilience applied in economic Resilience methodology completed Value Not developed planning and indicator, baseline, and and application in public target for the Philippine Philippine Development investment Development Plan are Plan agreed programming under development Date 31-May-2015 19-Sep-2017 01-Mar-2018 30-Sep-2018 Comments The overall strategic framework of the Philippine Development Plan (2017-2022) puts forth the outcome “Individuals and communities will be more resilient”. However, at the time of publication of the PDP, an index was still to be developed, and data to be collected to estimate the baseline (2018) value, and the value in 2022. The “Socio-economic Resilience Index” has been developed for the national and regional levels for 2018, using data from the latest Family Income and Expenditure Survey, and will be utilized in the forthcoming PDP Midterm 3/8/2018 Page 2 of 7 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) Update. 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 Revisions integrating Proposed “Philippine disaster risk reduction Building Act of 2018” measures developed has been finalized by Revisions for the NBCP in the the National Building integrating form of a draft Code Development disaster risk 'Philippine Building Act' Value Not developed Office and approved by reduction to be presented by the Department of Public measures are Department of Public Works & Highways for developed for Works and Highways endorsement to the the NBCP to the National Congress of the Economic and Philippines Development Authority Date 31-May-2015 19-Sep-2017 01-Mar-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 80 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 19-Sep-2017 01-Mar-2018 30-Sep-2018 3/8/2018 Page 3 of 7 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 Draft policy framework approved in-principle by framework developed for the Housing and Urban formulated and incorporation in the Development endorsed to Value Not formulated National Economic and Coordinating Council - Social Development Management Development Authority's Disaster Committee, Chairperson Committee – Recovery Framework and the Secretary Technical General Board Date 31-May-2015 19-Sep-2017 25-Jan-2018 30-Sep-2018 Comments A final presentation of the Post-Disaster Shelter Policy Framework (PDSF) will be made to Key Shelter Agencies on March 15, 2018, after which the final and approved PDSF will be submitted for endorsement to the NEDA Social Development Committee - Technical Board. 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 Vulnerability Vulnerability assessment assessment completed assessment completed completed for 5 for 18 sites and for 18 sites and priority cultural assessment assessment heritage sites methodology adopted methodology adopted by and Value 2 sites assessed by the Intramuros the Intramuros assessment Administration and the Administration and the methodology Tourism Infrastructure Tourism Infrastructure adopted in the and Enterprise Zone and Enterprise Zone Philippine Authority Authority Standards for Conservation Date 31-May-2015 19-Sep-2017 19-Sep-2017 30-Sep-2018 Comments As the Philippine Standards for Conservation are still under development, the Intramuros Administration and the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) have promulgated issuances adopting the multi-hazard vulnerability assessment methodology. The agencies are currently rolling out the use of the methodology for the assessment of historical assets within their respective portfolios. TIEZA has created a multi-hazard vulnerability assessment team for cultural heritage properties, in consideration of its mandate under Republic Act 9593 towards the preservation of cultural tourism sites. 3/8/2018 Page 4 of 7 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  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 Joint catastrophe risk Long term insurance program insurance program program is piloted by DOF for 25 piloted by DOF for 25 Value Not developed developed with provinces and relevant provinces and relevant 10 LGUs national government national government participating agencies agencies Date 31-May-2015 28-Jul-2017 28-Jul-2017 30-Sep-2018 Comments Based on 2 years of consultations with national and local government entities to determine the institutional and technical set up of an institutionalized mechanism for disaster risk financing, the World Bank will provide technical support to DOF for a proposed program design by June 2018. 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 Consultations ongoing Development of DRFI with the Department of strategies ongoing by Public Works and the Department of Public Highways and the Works and Highways, 2 agencies Department of the Department of have developed Education for the Value Not developed Education, and and piloted development of their Intramuros their DRFI respective DRFI Administration. Pilot strategy strategies. Pilot completed through the completed through the joint catastrophe risk joint catastrophe risk insurance program insurance program Date 31-May-2015 19-Sep-2017 01-Mar-2018 30-Sep-2018 Comments Technical assistance is being provided to three (3) national government agencies (DPWH, DepEd, and Intramuros Administration) to develop DRFI strategies. The Intramuros Administration will use this strategy as an input to the agency’s 2019 budget submission, and for piloting under the Conservation Management Plan for Intramuros (currently under development). The placement of the insurance coverage for national government agencies, described under Result Indicator B1, represents the piloting of the DRFI strategies at the sectoral level. 3/8/2018 Page 5 of 7 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  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 review Design is under review completed and work Design Value Not established by the Department of plan for implementation established Finance is under development Date 31-May-2015 19-Sep-2017 01-Mar-2018 30-Sep-2018 Comments The Philippine Insurers and Reinsurers Association has prepared a design for the establishment of a Philippine Catastrophe Insurance Pool (PCIP) for homeowners and SMEs and submitted this design for consideration and implementation by DOF. The World Bank has completed a technical review, and is supporting DOF in the preparation of a final design and work plan for implementation. 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 operations Program operations Program Value Not developed manual under manual under developed and development development commenced Date 31-May-2015 19-Sep-2017 01-Mar-2018 30-Sep-2018 Comments Grant financing has been secured by the World Bank for assistance to develop the technical and operational guidelines for establishing a scalability mechanism, based on a review of the Government’s experiences delivering cash transfers in post-disaster and crisis contexts. PHINDIRITBL  Catastrophe risk insurance database template updated and adopted by the Insurance Commission. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Updated template adopted through Updated template Insurance Commission Updated developed and Value Not updated Circular Letter No. 2017- template undergoing final 56 on adopted industry consultations Catastrophe/Property Insurance Reports Date 31-May-2015 19-Sep-2017 31-Dec-2017 30-Sep-2018 3/8/2018 Page 6 of 7 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) Overall Comments Adoption of updated catastrophe risk insurance database through the issuance of Insurance Commission Circular Letter No. 2017-56 on Catastrophe/Property Insurance Reports, requiring all non-life insurance companies to submit their respective annual reports using the updated database reporting templates. The Insurance Commission, with technical support from the Bank, has finalized the associated Manuals. 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 2.50 497.50 0.5% 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-2018 Tranches Restructuring History There has been no restructuring to date. Related Operations There are no related projects. 3/8/2018 Page 7 of 7 Public Disclosure Copy