Report No: ICR00196 IMPLEMENTATION COMPLETION AND RESULTS REPORT IBRD 9300 ON A LOAN IN THE AMOUNT OF US$ 500 MILLION TO THE Republic of the Philippines FOR Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option April 28, 2025 Urban, Resilience and Land East Asia And Pacific The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred ICR DOCUMENT Drawdown Option (P177125) CURRENCY EQUIVALENTS (Exchange Rate Effective {Sep 13, 2024}) Philippine Peso Currency Unit = (Php) US$1.00 = Php55.99 FISCAL YEAR January 1 - December 31 Regional Vice President: Manuela V. Ferro Country Director: Zafer Mustafaoglu Regional Director: Sudeshna Ghosh Banerjee Practice Manager: Yoonhee Kim Task Team Leader (s): Robert Curle Jesse Reid, Agnes Chung Balota ICR Main Contributor: Fides B. Borja The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred ICR DOCUMENT Drawdown Option (P177125) ABBREVIATIONS AND ACRONYMS BSP Bangko Sentral ng Pilipinas (Central Bank of the Philippines) CAT-DDO Catastrophe-Deferred Drawdown Option CCA-DRR Climate Change Adaptation- Disaster Risk Reduction CCAM-DRR Climate Change Adaptation and Mitigation- Disaster Risk Reduction CCC Climate Change Commission CCET Climate Change Expenditure Tagging COA Commission on Audit CPF Country Partnership Framework CRVA Climate Resiliency Vulnerability Assessment DA Department of Agriculture DBM Department of Budget and Management DENR Department of Environment and Natural Resources DILG Department of the Interior and Local Government DOF Department of Finance DOST Department of Science and Technology DPL Development Policy Loan DRF Disaster Risk Financing DRM Disaster Risk Management DRRM Disaster Risk Reduction and Management GDP Gross Domestic Product GeoRiskPH Geospatial Information Management and Analysis Project for Hazards and Risk Assessment in the Philippines GOP Government of the Philippines HUC Highly Urbanized Cities IMF International Monetary Fund ICC Independent Component Cities JICA Japan International Cooperation Agency LGU Local Government Unit NCCAP National Climate Change Action Plan NDRRM National Disaster Risk Reduction and Management NGA National Government Agency NGO Non-Government Organizations OCD Office of Civil Defense PAGASA Philippine Atmospheric, Geophysical and Astronomical Services Administration PCIP Provincial Commodity Investment Plan PDO Program Development Objective PDP Philippine Development Plan SCD Systematic Country Diagnostic SME Small and Medium Enterprises TESDA Technical Education and Skills Development Authority TVET Technical and Vocational Education and Training TWG Technical Working Group WB World Bank The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred ICR DOCUMENT Drawdown Option (P177125) TABLE OF CONTENTS DATA SHEET……………………………………………………………………………………………………………….........................................i I. PROGRAM CONTEXT AND DEVELOPMENT OBJECTIVES .................................................................................1 II. ASSESSMENT OF KEY PROGRAM DESIGN AND OUTCOMES ...........................................................................7 III. OTHER OUTCOMES AND IMPACTS ............................................................................................................. 19 IV. BANK PERFORMANCE................................................................................................................................ 21 V. RISK TO SUSTAINABILITY OF DEVELOPMENT OUTCOMES ............................................................................ 23 VI. LESSONS AND NEXT PHASE ........................................................................................................................ 24 ANNEX 1. RESULTS FRAMEWORK ...................................................................................................................... 26 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ....................................................... 30 ANNEX 3. BORROWER, CO-FINANCIERS, AND OTHER DEVELOPMENT PARTNERS’/STAKEHOLDERS’ COMMENTS . 32 ANNEX 4. SUPPORTING DOCUMENTS ................................................................................................................ 34 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred ICR DOCUMENT Drawdown Option (P177125) DATA SHEET @#&OPS~Doctype~OPS^dynamics@icrdpfstdalonebasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name Fourth Disaster Risk Management Development Policy P177125 Loan with a Catastrophe-Deferred Drawdown Option Product Operation Short Name Development Policy Financing (DPF) Fourth DRM DPL with a CATDDO Operation Status Approval Fiscal Year Closed 2022 DPF Options Is this operation part of a programmatic series? No Crisis & Post-Conflict Regular Deferred Drawdown Option No No Catastrophe Deferred Drawdown Option Sub National Lending Yes No Special Development Policy Lending No CLIENTS Borrower/Recipient Implementing Agency Republic of the Philippines Department of Finance DEVELOPMENT OBJECTIVE i The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred ICR DOCUMENT Drawdown Option (P177125) Program Development Objective (Approved as part of Approval Package on 17-Nov-2021) Strengthen the Government of the Philippines' institutional and financial capacity to manage risks from climate change, natural disasters, and disease outbreaks. @#&OPS~Doctype~OPS^dynamics@icrdpffinancing#doctemplate FINANCING Financing Source Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 500,000,000.00 500,000,000.00 500,000,000.00 IBRD-93000 500,000,000.00 500,000,000.00 500,000,000.00 Total 500,000,000.00 500,000,000.00 500,000,000.00 @#&OPS~Doctype~OPS^dynamics@icrkeydates#doctemplate KEY DATES Key Events Planned Date Actual Date Concept Review 30-Jul-2021 18-Aug-2021 Decision Review 07-Sep-2021 07-Sep-2021 Authorize Negotiations 04-Oct-2021 05-Oct-2021 Approval 17-Nov-2021 17-Nov-2021 Effectiveness 17-Jan-2022 22-Dec-2021 ICR Sequence.01 (Final) -- 28-Apr-2025 Operation Closing 31-Dec-2024 04-Sep-2023 @#&OPS~Doctype~OPS^dynamics@icrdpfratings#doctemplate RATINGS SUMMARY Overall Outcome Relevance of Prior Actions Achievement of Objectives (Efficacy) Satisfactory Satisfactory Satisfactory Bank Performance Satisfactory ISR RATINGS ii The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred ICR DOCUMENT Drawdown Option (P177125) Actual Disbursements No. Date ISR Archived DO Rating IP Rating (US$M) 01 10-Oct-2022 Satisfactory Satisfactory 200.00 02 01-Sep-2023 Satisfactory Satisfactory 497.50 @#&OPS~Doctype~OPS^dynamics@icrsectortheme#doctemplate SECTORS AND THEMES Sectors Adaptation Mitigation Major Sector Sector % Co-benefits Co-benefits (%) (%) FY17 - Agriculture, FY17 - Other Agriculture, Fishing and 10 100 0 Fishing and Forestry Forestry FY17 - Workforce Development and FY17 - Education 10 100 0 Vocational Education FY17 - Public FY17 - Other Public Administration 80 100 0 Administration Themes Major Theme Theme (Level 2) Theme (Level 3) % FY17 - Environment and Natural Resource FY17 - Climate change FY17 - Adaptation 100 Management FY17 - Disaster Risk FY17 - Finance FY17 - Finance for Development 20 Finance FY17 - Gender 20 FY17 - Human FY17 - Labor Market Policy and FY17 - Skills Development and 20 Programs Development Gender FY17 - Nutrition and Food Security FY17 - Food Security 20 FY17 - Public FY17 - Public Sector FY17 - Public Finance Management Expenditure 20 Management Management FY17 - Disaster 20 FY17 - Urban and Rural Preparedness FY17 - Disaster Risk Management Development FY17 - Disaster 40 Response and Recovery iii The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred ICR DOCUMENT Drawdown Option (P177125) FY17 - Disaster Risk 80 Reduction iv The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) Role At Approval At ICR Practice Manager Francis Ghesquiere Yoonhee Kim Regional Director Benoit Bosquet Sudeshna Ghosh Banerjee Global Director Sameh Naguib Wahba Tadros Ming Zhang Practice Group Vice President Juergen Voegele Guangzhe Chen Country Director Ndiame Diop Zafer Mustafaoglu Regional Vice President Manuela V. Ferro Manuela V. Ferro ADM Responsible Team Leader Lesley Jeanne Yu Cordero Robert Curle Jesse Reid Co-Team Leader(s) Agnes Chung Balota Agnes Chung Balota ICR Main Contributor Fides Borja I. PROGRAM CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Macroeconomic Policy Framework at Appraisal 1. The Philippine economy rebounded in 2021 after contracting in 2020 due to the COVID-19 pandemic. Real output expanded by 3.7 percent year-on-year in the first half of 2021 compared to - 9.3 percent in the first half of 2020. The recovery was led by robust growth in the industry and services sector due, in part, to the loosening of restrictions and increased economic activity. Weak production from the livestock sector, however, prevented the agriculture sector from contributing much to the rebound. Growth was further supported by improvements in fixed investment amid continued spending on public construction and durable equipment. Private consumption also contributed to the recovery, though still far from pre-pandemic levels as inflation and unemployment remained elevated. Public consumption expanded alongside significant spending measures to address the pandemic. Finally, exports benefited from improvements in external demand, while imports recovered given increased domestic demand for raw materials, intermediate, and capital goods. 2. The COVID-19 pandemic increased public debt to the highest levels in over a decade despite maintaining a healthy fiscal balance in previous years. Fiscal deficit rose to 7.9 percent of GDP in the first half of 2021 as the government expanded spending to help contain the impact of the crisis. Public spending reached 24.2 percent in the first half of 2021, with higher spending on social protection and health to mitigate the impact of COVID-19. The increase in financing needs increased public debt from 39.6 percent of GDP in 2019 to 54.6 percent in 2020, the highest since 2006. However, the GOP expected fiscal deficit to decline over the medium term as it implements its consolidation plans and amid the anticipated deceleration of public spending on operating expenditures. Page 1 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) 3. Despite elevated levels of inflation in 2021, the Bangko Sentral ng Pilipinas (BSP) maintained an accommodative monetary policy to support the economy and withstand the economic impact of the COVID-19 pandemic. Inflation accelerated to 4.5 percent in the first nine months of 2021 due to various supply-side factors. Despite this, the BSP maintained the key policy rate at 2 percent in August 2021 to aid recovery. The BSP also implemented measures such as lowering reserve requirements to twelve percent, including peso loans for small businesses in reserve calculations, instituting a 60-day loan moratorium that expired in March 2021, and deferring loan classifications until December 2021. Overall, liquidity in the banking industry remained sufficient to handle funding shocks. 4. Economic growth was expected to recover over the medium term but was contingent on the effective management of the health crisis. The economy was projected to grow at 4.3 percent in 2021 and about 5.6 percent in 2022-2024. Growth expectations were driven by the anticipated recovery in domestic activities and the improvement of global demand. Improved labor market conditions in the Philippines and abroad increased employment and private consumption by the latter half of 2021. Public investment likewise grew due to the government’s sustained implementation of public infrastructure projects. Private investment, however, remained subdued due to elevated uncertainty. External demand also improved with the recovery of trading partners. 5. At appraisal, the macroeconomic policy framework was deemed adequate for the purpose of the proposed operation. The government implemented necessary measures to mitigate the impact of the crisis and maintain macroeconomic stability. The BSP remained committed to the inflation- targeting objective and was responsive to global interest rate movements. In terms of fiscal policy, GOP authorities were committed to fiscal consolidation over the medium term which was credible considering its conservative expenditure policy in the past 10 years. In addition, the government’s commitment to accelerate the pace of structural reforms as part of recovery efforts was expected to further promote competitiveness and support economic growth. Public debt also appeared to be sustainable given the expected growth recovery and fiscal consolidation. Sector Context 6. Climate change and natural disasters are among the largest threats to the sustainability of Philippine growth and development prospects. At least 60 percent of the Philippines’ land area and 74 percent of its population are vulnerable to various natural hazards, including typhoons, floods, landslides, tsunamis, volcanic eruptions, and earthquakes. Typhoons, averaging 20 per year, are a constant challenge, and the increasing frequency and severity of these events are expected to worsen climate-related losses1. The country’s location also makes it highly prone to earthquakes, with 18 destructive ones occurring in the past 40 years. Annual economic losses from typhoons and earthquakes are estimated at Php176.7 billion (US$3.5 billion). 7. The recurrence of succeeding disaster and climactic events compounded the effects of the pandemic and posed significant challenges to the GOP’s risk reduction and response and recovery efforts. In January 2020, Taal Volcano experienced a phreatic eruption affecting almost 600,000 people in areas near Metro Manila. Later that year, in September, Mindanao was struck by two earthquakes of 1GFDRR (Global Facility for Disaster Reduction and Recovery) Philippines Country Profile. https://www.gfdrr.org/sites/default/files/publication/PHILIPPINES2016.pdf Page 2 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) magnitude 5.2 and 6.1. From October to mid-November, three successive super typhoons also impacted Luzon. Typhoons Molave, Goni, and Vamco affected over eight million people, with combined damages to infrastructure and agriculture of Php 42 billion (US$841 million). In July 2021, phreatic activity at Taal volcano raised the alert status level to high amid government efforts to strengthen the capacity of the healthcare system and protect vulnerable households from COVID-19. This highlighted how the pandemic made it increasingly challenging for the government to prepare for and effectively respond to the compounded impacts of climactic events. The Government’s Disaster Risk Management Program 8. The Philippines transformed its approach to disaster management over the past decade, shifting from a reactive to proactive risk management approach focused on preparedness and resilience. The 2009 Climate Change Act mandated the integration of climate change adaptation into policy- making, creating a comprehensive framework for climate action in synergy with disaster risk reduction (DRR). The 2010 Philippine Disaster Risk Reduction and Management (DRRM) Act shifted the focus from disaster response to risk reduction and preparedness, promoting multi-sectoral coordination and local participation. It provides a legal framework for integrating DRR into development planning and governance. 2 In 2011, the government developed the National Disaster Risk Reduction and Management (NDRRM) Framework, aimed at building safe, adaptive, and disaster-resilient Filipino communities towards sustainable development. This was expanded in the National Disaster Risk Reduction and Management Plan (NDRRMP) 2011-2028 which focuses on strengthening disaster prevention and mitigation, disaster preparedness, disaster response, and disaster rehabilitation and recovery. Further, CCA-DRR measures were mainstreamed in all sectors of Philippine Development Plan (PDP) 2017-2022. 9. Efforts were also strengthened to integrate the country’s changing risk landscape into its national plans which were shaped by the complex interplay of climate change, disaster risks, and the COVID- 19 pandemic. In 2021, the GOP updated the PDP and the NDDRM Plan to address the compounded effects of the pandemic, which have intensified the impacts of climate change and natural disasters. The revised NDRRM Plan integrates lessons learned from the past decade of implementation and highlights new policy directions, specifically, the need to: (i) make DRRM investments integral in development, poverty reduction, fiscal stability, and sustainable economic growth; (ii) bridge the gap between science and technology and policy-making; (iii) invest and scale up local data collection; (iv) build resilient infrastructure and livelihoods; (v) invest in public health; (vi) prioritize building back better, (vii) ensure coherence in DRRM and climate change agenda; and (viii) reconfigure DRRM protocols and approaches to adapt to the new normal, among others. 10. Local government units (LGUs) play a crucial role in service delivery, disaster risk management (DRM), and climate change adaptation and mitigation. Under the 2009 Climate Change Act and the 2010 Philippine DRRM Act, LGUs are responsible for leading efforts in climate change adaptation and mitigation, disaster risk reduction and management.3 With the implementation of the Supreme Court 2As defined in the Philippines DRRM Act, disaster includes disease outbreaks and other public health emergencies. 3LGUs include provinces, highly urbanized cities (HUCs), independent component cities (ICCs), component cities, municipalities, and barangays (villages), each with a degree of autonomy. Provinces are the highest local government level, Page 3 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) Ruling on the Mandanas Case, national tax revenue allotments for LGUs increased since 2022 as part of the devolution of functions outlined in the 1991 Local Government Code.4 Cat DDO 4’s significant focus to local government was strategic as it supported the implementation of a decade-long reform process by helping address the gaps faced by the LGUs in the management of risks related to climate, disasters, and disease outbreaks. The Risk Resiliency Program5 identifies vulnerable LGUs for priority support based on criteria such as high poverty rates, exposure to hazards (drought, strong winds, flooding, landslides, storm surges), and location in critical watersheds. This includes 24 provinces covering 21 cities and 394 municipalities. 11. The Government has been advancing reforms to strengthen its institutional capacity to manage risks to reflect this shift in paradigm. In 2021, the NDRRM Council-Office of Civil Defense launched the Ready to Rebuild Program to help LGUs with pre- and post-disaster recovery planning. In 2018, the Department of Science and Technology (DOST), in collaboration with other agencies, developed the GeoRiskPH integrated database, to provide access to hazard and risk information from various National Government Agencies (NGAs). This system helps NGAs and LGUs assess risks for informed decision-making and planning. Additionally, the Technical Education and Skills Development Authority (TESDA) has strengthened community capacity for disaster response and recovery through its community-based DRM-related Technical and Vocational Education and Training (TVET) program. 12. Reforms were also put in place to strengthen the Government’s financial capacity to manage risks. Through a Joint Memorandum Circular from the Department of Budget and Management (DBM), Climate Change Commission (CCC), and the Department of the Interior and Local Government (DILG), local climate budget tagging was introduced in 2015, enabling LGUs to prioritize and code climate- related programs and projects in their annual investment plans. This system institutionalized the tracking and reporting of climate actions at sub-national level. The Philippine’s climate budget tagging typology reflect the priorities of the National Climate Change Action Plan (NCCAP) and includes DRR initiatives. Further, in 2020, the GOP also mandated the inclusion of CCA-DRR measures in all Government projects. Finally, the Department of Agriculture (DA) adopted the Climate Risk Vulnerability Assessment (CRVA) in 2021 as a standard assessment and targeting tool for DA's investment projects to integrate climate risk management and resilience in the Provincial Commodity Investment Plans (PCIPs). 13. To effectively implement the abovementioned reforms, the following critical gaps, particularly those faced by LGUs, needed to be addressed: (i) complex approval processes that often delay the disbursement of funds for rehabilitation and recovery; (ii) improve access to, understanding, maintenance (updating), and use of risk information and research; (iii) enhance risk awareness and risk informed decisions and actions by governments and communities; (iv) implement comprehensive and mutually reinforcing community preparedness and response plans and programs; and (v) overseeing component cities and municipalities, while HUCs and ICCs are self-governing. The country has 81 provinces, 33 HUCs, 5 ICCs, 108 component cities, and 1,488 municipalities. 4 Supreme Court Ruling on the Mandanas Case (Mandanas Ruling) in 2022 called for significant increase of National Government transfers to LGUs where all national taxes will be the basis of the computation for transfers to local governments beginning 2022 and full devolution of functions identified in the 1991 Local Government Code. 5 The Risk Resiliency Program aims to assist the GOP in strengthening the resiliency of natural ecosystems and the adaptive capacity of vulnerable groups and communities to short- and long-term climate and disaster risks. It converges the efforts and resources of NGAs and LGUs to meet common objectives on disaster and climate resilience. Page 4 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) mainstream climate change adaptation and disaster risk reduction (CCA-DRR) in the context of increased devolution resulting from the Mandanas Ruling. Rationale for Bank Involvement 14. The World Bank has been supporting the GOP in strengthening its disaster risk management system for over a decade through development policy operations and technical assistance. The engagement was initiated with the first DRM Development Policy Loan (DPL) with a Catastrophe Deferred- Drawdown Option (Cat DDO1, P125943, US$500 million) in 2011 which strengthened the GOP's capacity for disaster risk management (DRM). It led to the creation of local DRRM offices, integration of disaster risk reduction into development planning, and a National Disaster Risk Financing and Insurance Strategy. Cat DDO1 was fully drawn after Tropical Storm Washi in December 2011. The second DRM-DPL with a Cat DDO (Cat DDO2, P155656, US$500 million) was approved in 2015, supporting further DRR policy implementation and reforms at both national and sectoral levels. Cat DDO2 was fully utilized after Super Typhoon Mangkhut in 2018. The World Bank also provided technical assistance for both Cat DDO1 and Cat DDO2. In 2019, the GOP requested a third DRM-DPL, which coincided with COVID-19 response efforts and aimed to build on previous achievements with a focus on anticipatory planning for resilient recovery, adaptive social protection, and advancing DRM reforms at the local level. 15. Cat DDO 4 was designed to provide the GOP with a platform for continued enhancement and implementation of the country’s DRM program focused on cascading DRM reforms at the LGU level. The country’s high vulnerability to disaster and climate events required continued support to enhance the DRM system through further policy reforms that build on previous achievements. In 2021, the GOP requested World Bank support for the preparation of Cat DDO4 to further strengthen its institutional and financial capacity to manage risks while securing the financial resources for disaster interventions ahead of the typhoon season. The increasing frequency of disasters and their significant impact underscored the need to integrate DRR-CCA into sectoral planning, enhance financial protection, and strengthen disaster response and recovery with particular focus on local governments - marking a shift in strategy from previous Cat DDOs. From 2010 to 2019, the Philippines incurred Php463 billion (US$9.3 billion) in damages from extreme events and natural disasters. The DPL with a Cat DDO instrument is a critical component of the GOP’s overall disaster risk financing (DRF) and risk layering strategy to minimize cost and optimize post-disaster response delivery. As a contingent financing instrument, Cat DDO 4 provided immediate liquidity to finance post-disaster response and recovery efforts, consistent with the country’s National DRF Strategy. Higher-level objectives to which the Program Contributed 16. The program was aligned with the findings of the 2020 Systematic Country Diagnostic and the Country Partnership Framework (CPF) for the period FY2019-2023 (Report No. 24605-PH). Despite substantive DRM reforms that led to the establishment of key policies and interventions, the SCD identified policy priorities to improve the GOP’s capacity in line with the achievement of its Ambisyon Page 5 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) Natin 2040 vision.6 The SCD emphasized the need for scaled up actions and efforts to address the country’s vulnerabilities to natural disasters, the impacts of climate change, and its various cascading effects on communities and infrastructure. Cat DDO 4 aimed to address these by strengthening the GOP’s institutional and financial capacity to manage risks from climate change, natural disasters, and disease outbreaks simultaneously and systematically. It supported CPF Objective #10 on increased resilience to natural disasters and climate change, under the broader Focus Area #3 of the CPF on reducing core vulnerabilities by building peace and resilience. The Cat DDO 4 likewise contributed to the Bank’s Twin Goals of ending poverty and promoting shared prosperity as the program’s aim of mitigating climate and disaster risks and reducing its consequent losses reinforced the GOP’s ability to contribute to broader poverty reduction efforts. Original Program Development Objective(s) (PDO) (as approved) 17. The PDO of Cat DDO 4, as stated in the Program Document (Report No. PGD304), is to strengthen the GOP’s institutional and financial capacity to manage risks from climate change, natural disasters, and disease outbreaks7. Original Policy Areas/Pillars Supported by the Program (as approved) 18. The policy framework for this program was designed to support policy actions under two pillars: 19. Pillar A: Strengthening Disaster Response and Recovery Policies and Planning. This pillar supported policy actions toward (i) institutionalizing the use of Disaster Recovery and Rehabilitation plans among vulnerable LGUs to link funding approval from the National Disaster Risk Reduction and Management (NDRRM) Fund to planning for recovery and rehabilitation projects, (ii) strengthening evidence-based planning and decisions on climate, disaster, and health-related vulnerabilities through the inclusion of relevant data into the GOP’s central risk data system, and (iii) increased participation in TVET courses related to DRM and disease outbreaks among communities in vulnerable LGUs. 20. Pillar B: Strengthening the Resilience of Government Programs in Key Sectors. This pillar included actions that aimed to: (i) increase the compliance of NGAs and LGUs in Climate Change Expenditure Tagging (CCET), (ii) integrate CCA-DRR measures in local investment programs of highly urbanized cities (HUCs) and independent component cities (ICCs), and (iii) integrate climate risk and resilience in priority investments through the PCIP updating. B. SIGNIFICANT CHANGES DURING IMPLEMENTATION 21. Based on the Government’s request received on August 31, 2023, Cat DDO 4 was closed on September 4, 2023 ahead of its original closing date of December 31, 2024. At the time of the request, four out of the program’s six results indicators had been achieved or exceeded while the remaining two were 6 Ambisyon Natin 2040 reflects the shared aspiration of the Filipino people for a strongly rooted, comfortable, and secure life by 2040. 7 The PDO was not stated in the Loan Agreement. For DPF operations, PDOs are not included in the Loan Agreements. Page 6 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) on track for completion, demonstrating the program’s substantial progress. Despite the program’s early closure, the Government and the World Bank agreed that results targets would remain valid until December 31, 2024, as originally planned. Additionally, the Bank continued to provide technical assistance to help the Government fully achieve the program’s intended outcomes, while supporting the preparation and launch of a follow-on operation.8 22. With the early closure of Cat DDO 4, the Government was able to secure a new Cat DDO (DRM and Climate Cat DDO, P180585) which was approved by the Board on November 16, 2023. Securing a new Cat DDO is consistent with the Government’s DRF Strategy where one of its tools to manage the financial impacts of disasters is to retain a post-disaster contingent financing. In accordance with the Bank's limit for DPF Cat DDO set by the Bank Policy: Financial Terms and Conditions of Bank Financing effective at that time (issued on March 31, 2021), for IBRD countries the maximum limit was US$500 million or 0.25 percent of GDP, whichever is lower. While Cat DDO 4 funds were fully drawn down in January 2023, it continued to count towards the set country limit.9 II. ASSESSMENT OF KEY PROGRAM DESIGN AND OUTCOMES 23. The five out of six results indicators were achieved and one indicator was partially achieved, as shown in Table 1. Table 1. Prior Actions and Results Indicators Prior Actions Results Indicators (original and revised) PILLAR A: Strengthening Disaster Response and Recovery Policies and Planning Prior Action 1: Result Indicator A1: Vulnerable Local Government Units (LGUs) submit Disaster The Government has mandated Rehabilitation and Recovery Plans as required to rapidly request and access the use of Disaster funding from the NDRRM Fund for recovery and reconstruction projects. Rehabilitation and Recovery Baseline (2021): 0 vulnerable LGUs affected by disasters that require funding Plans to link funding approval submit Disaster Rehabilitation and Recovery Plans to rapidly request and from the National Disaster Risk access funding from the NDRRM Fund. Reduction and Management Target: 50% of vulnerable LGUs affected by disasters that require funding (NDRRM) Fund to planning submit Disaster Rehabilitation and Recovery Plans to rapidly request and through a NDRRM Council access funding from the NDRRM Fund. memorandum circular. Current status (December 2024): 61% of the vulnerable provinces affected by Super Typhoon Odette (Rai), Northern Luzon earthquake, and Typhoon Egay 8 The WB and GoP’s agreement to continue monitoring the achievement of results beyond the project’s closing date was recorded in the Implementation Support Mission’s Aide Memoire of August 14 to 18, 2023. 9 This limit was increased to US$1 billion on July 1, 2024 as part of the Crisis and Preparedness and Response Toolkit. Page 7 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) submitted NDRRM Fund request using Rehabilitation and Recovery Program (11/18 vulnerable provinces).10 Assessment: Exceeded Prior Action 2: The Government Result Indicator A2: Climate, disaster, and health-related data of LGUs are has required National included in the Government’s central risk data system (GeoRiskPH). Government Agencies (NGAs) Baseline (2021): GeoRiskPH includes climate, disaster, and health-related and LGUs to establish climate data of 0 LGUs. and disaster risks baseline data Target (2024): GeoRiskPH includes climate, disaster, and health-related to inform disaster risk baseline data of 100 LGUs. management interventions Current status (December 2024): GeoRiskPH includes climate, disaster, and through the NDRRM Plan 2020- health-related data of 215 LGUs. 2030. Assessment: Exceeded Prior Action 3: The Government Result Indicator A3: Increased community participation in vulnerable has strengthened the delivery provinces in TVET courses related to DRM and disease outbreaks. of community-based Disaster Baseline (2021): 3,143 graduates in DRM and disease outbreak related TVET in Risk Management (DRM)- vulnerable provinces; with 18% women participation in construction, related Technical and automotive, electrical, and metals engineering related TVET courses. Vocational Education and Target (2024): 4,715 graduates (50% increase from the baseline) in DRM and Training (TVET) program disease outbreak related TVET in vulnerable provinces, women participation through the issuance of in construction, automotive, electrical, and metals engineering related TVET Technical Education and Skills courses increased to 40%. Development Authority (TESDA) Current status (December 2024): 62,734 graduates in DRM and disease Circular. outbreak related TVET courses, women participation increased from 106 to 9,768 graduates in construction, automotive, electrical, and metals engineering related TVET courses. Assessment: Partially achieved - Exceeded for overall community participation and not achieved for percentage of women participation. PILLAR B: Strengthening the Resilience of Government Programs in Key Sectors Prior Action 4: The Government Result Indicator B1: Increased compliance of NGAs and LGUs in disaster and has mandated the inclusion of climate budget tagging. climate change adaptation and Baseline (2021): 10% of NGAs and 10% of LGUs complied with the budget disaster risk reduction (CCA- tagging in 2020 (for the 2021 budget). DRR) measures in all projects Target (2024): 50% of NGAs and 30% of LGUs complied with the budget through the passage of Republic tagging. Act 11518. Current status (December 2024): 71% of NGAs and 43% of LGUs have complied with the budget tagging. Assessment: Exceeded Result Indicator B2: Local investment programs of highly urbanized cities (HUCs) and independent component cities (ICCs), and the priority vulnerable provinces integrate CCA-DRR measures. 1018 vulnerable provinces were affected by various disasters. Of these, 11 submitted funding requests using their RRPs including 8 of the 14 provinces affected by Super Typhoon Odette and 3 of the 4 provinces affected by the Northern Luzon Earthquake. Moreover, 2 of these 3 provinces requested for additional funds due to Typhoon Egay. Page 8 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) Baseline (2021): 13% (5/38) of HUCs and ICCs and 33% (8/24) of priority vulnerable provinces have local investment programs that integrate CCA-DRR measures. Target (2024): 100% (38/38) of HUCs and ICCs and 100% (24/24) of the priority vulnerable provinces have local investment programs that integrate CCA-DRR measures. Current status (December 2024): 97% (37/38) of HUCs and ICCs have approved local investment programs that integrate CCA-DRR measures. The local investment program of the one remaining HUC (Lucena City) has been drafted and is expected to be approved within the year (2025); 100% (24/24) of priority vulnerable provinces have local investment programs that integrate CCA-DRR measures. In addition, DENR expanded the target to include 2 more provinces and the urban centers of Metro Manila, Metro Cebu, Metro Iloilo and Metro Davao. Assessment: Achieved – 97% achieved for HUCs and ICCs; Exceeded for priority vulnerable provinces Prior Action 5: The Government Result Indicator B3: The Government has updated the PCIPs to integrate adopted Climate Risk climate risk and resilience in priority investments. Vulnerability Assessment to Baseline (2021): 16 out of 60 PCIPs integrated climate risk and resilience in integrate climate risk priority investments. management and resilience in Target (2024): 60 out of 60 PCIPs integrated climate risk and resilience in the Provincial Commodity priority investments. Investment Plans (PCIPs) Current status (December 2024): 67 out of 60 PCIPs have integrated climate through a Department of risk and resilience in priority investments. The additional 7 PCIPs were from Agriculture Memorandum. the 81 targeted under the Philippine Rural Development Project (PRDP).11   Assessment: Exceeded A. RELEVANCE OF PRIOR ACTIONS Rating: Satisfactory 24. The relevance of prior actions for the achievement of the PDO is rated Satisfactory. The formulation of the PDO was appropriate and aligned with the prior actions and result indicators. The prior actions were linked to the Government’s DRM program and had strong and direct links to the operation’s PDO: to strengthen the GOP’s institutional and financial capacity to manage risks from climate change, natural disasters, and disease outbreaks. Despite being ambitious, the prior actions were realistic and strategic in its contributions to the PDO’s achievement. The first three prior actions under Pillar A helped address the institutional capacity to manage risks, as reflected in the PDO, by enhancing disaster response and recovery policies and planning. Prior Actions 4 and 5 under Pillar B, helped achieve the PDO’s aspect of strengthened financial capacity to manage risks through actions that strengthened the resilience of government programs in key sectors. 11The WB-supported Philippine Rural Development Project (PRDP) (P132317) is DA’s flagship project for rural development that aims to establish a modern, value chain-oriented and climate-resilient agriculture and fisheries sector. Page 9 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) 25. The Prior Actions are highly relevant to the Government’s priorities. The program is relevant to the Philippines’ long-term vision Ambisyon Natin 2040, a core priority of which is building resilience and creating an environment for people to have opportunities to (i) improve their lives and well-being with stability and predictability; (ii) be protected from natural disasters; and (iii) prepare and equip themselves to mitigate disaster impacts, recover faster, and rebuild better. The Cat DDO4 is also aligned with the Philippine Development Plan 2023-2028, which reflects that building resilience to disasters, climate change, and health emergencies is a national priority and must be mainstreamed in all sectors and at all levels of governance.  26. The Prior Actions were selected based on extensive analytical work. The prior actions were relevant to the context of the Philippines, grounded in various analytical work including those supported by the Cat DDOs and associated Global Facility for Disaster Reduction and Recovery technical assistance program. This analytical work underscored the need to (i) have a standard framework for post-disaster rehabilitation and recovery and streamlined processes and procedures for downloading of funds to NGAs and LGUs for immediate rehabilitation and recovery12,13, supported by Prior Action 1; (ii) have a baseline data before a disaster to speed up post-disaster response and facilitate effective planning and investment programming14, supported by Prior Action 2; (iii) strengthen community participation in the rehabilitation and recovery process 15 , supported by Prior Action 3; (iv) strengthen climate budget tagging16, supported by Prior Action 4; and (v) improve the overall resilience and sustainability of the agriculture sector17, supported by Prior Action 5. 27. The program supported the WBG Philippines CPF for 2019-23. The CPF Focus Area #3 aimed to address the country’s core vulnerabilities of conflict alongside climate change and disasters, which pose significant risks to future growth of the Philippines. It supported the CPF Objective #10 on increased resilience to natural disasters and climate change by strengthening disaster response and recovery policies and planning and strengthening the resilience of government programs in key sectors. The reforms aligned with the World Bank’s corporate commitment to support the Sendai Framework for Disaster Risk Reduction and Paris Climate Agreement by helping countries mainstream disaster risk reduction and climate change adaptation in national development policies, plans, frameworks, and programs. 28. The links between the Program’s Prior Actions, Results Indicators and expected outcomes are discussed below. Annex 4 provides the Program’s ex-post results chain. Pillar A: Strengthening Disaster Response and Recovery Policies and Planning Prior Action 1: The Government has mandated the use of Disaster Rehabilitation and Recovery Plans to link funding approval from the National Disaster Risk Reduction and Management (NDRRM) Fund to planning through a NDRRM Council memorandum circular. 12 World Bank, 2017. “The Philippines: Lessons from Yolanda”. 13 World Bank, 2020. “Public Expenditure Review: Disaster Response and Rehabilitation in the Philippines”. 14 Noted by the World Bank publication The Philippines: Lessons from Yolanda (2017). 15 Ibid. 16 Noted by the World Bank publication Climate Change Budget Tagging: A Review of International Experience. Equitable Growth, Finance and Institutions Insight (2021). 17 Noted by the World Bank publication Transforming Philippine Agriculture During Covid-19 and Beyond (2020). Page 10 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) 29. Prior Action 1 fast tracked the overall disaster recovery phase by linking funding directly to disaster recovery planning. This policy reform was essential in strengthening LGUs’ institutional capacity for disaster response and recovery by addressing significant delays that LGUs face in accessing disaster recovery funds from the national government. This is particularly important as the collective experience of implementing reforms to enhance disaster and climate resilience emphasized disbursement bottlenecks as a major obstacle to efficient disaster response and recovery. Prior Action 1 built on strategic gains from DRM-DPL3 which empowered LGUs, particularly in vulnerable regions, to develop pre-disaster rehabilitation and recovery plans. 30. Results Indicator A1 measured the capacity of vulnerable LGUs to respond to and recover from disasters more effectively and efficiently. Requiring Disaster Rehabilitation and Recovery Plans (RRPs) to request funding from the NDRRM Fund for recovery and reconstruction enabled LGUs to adopt a more systematic process for disaster recovery. This approach ensures that a comprehensive list of disaster recovery projects that require funding is in place, rather than requesting funds on a per project basis. It accelerates the rehabilitation and recovery process, facilitates efficient allocation of the limited NDRRM Fund, and ensures coherence of Rehabilitation and Recovery Plans with the Government’s goal of creating safer, adaptive, and disaster-resilient communities. Through Prior Action 1, vulnerable LGUs were able to initiate the recovery process more swiftly and respond to post- disaster needs, compared to previous practices. Prior Action 2: The Government has required NGAs and LGUs to establish baseline data for disaster and climate risks to inform DRM interventions through the NDRRM Plan 2020-2030. 31. Prior Action 2 strengthened evidence-based planning for DRM interventions through the consolidation of relevant information into one database and platform. Significant progress has been made in this area, largely due to the establishment of a centralized multi-hazard database managed by the DOST. Launched in 2018, GeoRiskPH was designed to replace the fragmented management of data on hydro-meteorological and geologic hazards and risks that were sourced from different forecasting and mapping agencies. Fragmentation of data constrains planning and evidence-based decisions at the national, sectoral, and local levels. Previously limited to capturing data from various NGAs, enhancements to GeoRiskPH strengthened the Government's institutional capacity to manage risks by enhancing the platform through the integration of local level data and enabling improved planning for climate and disaster risks. 32. Results Indicator A2 supported the integration of updated LGU-specific information and datasets into GeoRiskPH, providing a comprehensive understanding of disaster, climate, and health-related risks. Local data collection emphasizes the crucial role of local authorities in identifying vulnerabilities and crafting appropriate solutions. The availability of robust and updated data helps ensure that government priorities and projects are responsive to local needs and realities and are effectively incorporated into overall planning and DRM interventions. Prior Action 3: The Government has strengthened the delivery of community-based Disaster Risk Management (DRM)-related Technical and Vocational Education and Training (TVET) program through the issuance of Technical Education and Skills Development Authority (TESDA) Circular. Page 11 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) 33. Prior Action 3 created an enabling environment for community participation which enhances disaster response and recovery efforts. It is grounded on the recognition that local communities are among those most adversely affected by disasters, yet they also serve as a vital resource post- disasters. Addressing the need to equip communities in vulnerable provinces with critical and targeted skills that are crucial in post-disaster contexts and health emergencies (e.g., construction, welding, electrical installation and maintenance health services) aligns with the GOP’s proactive approach to DRM. The National Disaster Risk Reduction and Management Plan’s emphasis on the build-back- better principle necessitates that communities are equipped with improved assets and capacities to enhance resilience and reduce vulnerabilities. 34. Results Indicator A3 measured the enhanced capacity of communities in critical skills for disaster response, rehabilitation, and recovery. Consequently, this prior action implemented strategies for livelihood protection and diversification, targeting sectors that are most vulnerable with the fewest assets for recovery. Pillar B: Strengthening the Resilience of Government Programs in Key Sectors Prior Action 4: The Government has mandated the inclusion of CCA-DRR measures in all projects through the Republic Act 11518 (General Appropriations Act of 2021). 35. Prior Action 4 supported the tracking and prioritization of CCA-DRR measures and investments. In particular, it mandated all NGAs and LGUs to explicitly identify and prioritize projects directly related to CCA-DRR in their various budget-related development plans. This strategy helped contextualize public investment policy within an evidence-based framework oriented towards the cost-efficient mitigation of the adverse effects of climate change, disaster risks, and disease outbreaks. By embedding CCA-DRR into budget plans, the government ensured that these critical issues were not only recognized but actively addressed in national and local development agendas. This approach promotes resource allocation for initiatives that prevent or reduce disaster-related damage, minimize climate vulnerabilities, and improve resilience in communities most at risk, thereby enhancing the GOP’s financial capacity to manage risks. 36. Increased compliance of NGAs and LGUs in disaster and climate budget tagging - Results Indicator B1, allowed for the easy identification and tracking of CCA-DRR investments. The current budget tagging system is responsive to CCA-DRR and climate change mitigation based on the strategic priorities of the NCCAP. While this is limited to tracking budget allocation and not yet actual expenditures, CCET provides robust data sets that inform climate change planning and programming of NGAs and LGUs and therefore encouraged strategic, longer-term project planning for CCA-DRR. Additionally, climate change budget tagging supports disease surveillance systems and enhances public health emergency preparedness. Meanwhile, Results Indicator B2 measured the extent to which CCA-DRR investments were integrated in the programs of local government units through their Annual Investment Plans. Prior Action 5: The Government has adopted Climate Risk Vulnerability Assessment (CRVA) to integrate climate risk management and resilience in the Provincial Commodity Investment Plans (PCIPs) through a Department of Agriculture (DA) memorandum. Page 12 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) 37. Prior Action 5 improved the responsiveness and adaptability of local agricultural communities to climate risks. Climate risk vulnerability assessments allow for the empirical determination of the susceptibility of communities, farmlands, and crops to extreme climatic events. This is particularly important for the agricultural sector, which is often severely impacted by disasters, affecting livelihoods, food supply, and commodity prices. Agriculture plays a vital role in the Philippine economy, employing around 21 percent of the labor force, particularly in rural areas, and accounting for 8.5 percent of the total GDP.18 Risk-informed investment planning helps address current gaps in local climate adaptation strategies and supports the GOP’s efforts to build climate and food system resilience. This intervention is both timely and strategic as data from the Climate Change Commission shows that from FY 2016-2020, climate change investments were primarily focused on Sustainable Energy (47%), Water Sufficiency (27%) and Human Security (12%).19 In contrast, investments in Food Security accounted for only 7%, with just 7% for Agriculture and Livestock and 0.04% for Fisheries. 38. Through Prior Action 5, the CRVA informs the identification and prioritization of climate interventions and risk adaptation strategies that are designed to minimize disaster risk, maximize agricultural productivity, and strengthen food security, especially for vulnerable communities. By systematically evaluating the specific risks and vulnerabilities of different sectors, particularly agriculture, the CRVA enables the development of targeted and effective interventions designed to minimize the negative impacts of climate-related events. This assessment process helps identify the most at-risk sectors and communities while strengthening the agricultural sector’s financial capacity to manage climate risks more effectively. It supports longer-term planning, encourages increased investments in agriculture, and promotes the development of more sophisticated value chains. B. ACHIEVEMENT OF OBJECTIVES (EFFICACY) Rating: Satisfactory 39. Overall, the program’s efficacy is rated satisfactory as it has successfully contributed to strengthening the GOP’s institutional and financial capacity to manage risks from climate change, natural disasters, and disease outbreaks. Of the six expected results being monitored, five were achieved, one was partially achieved, and four of the achieved targets were significantly exceeded. The results were verified through regular reporting and extensive consultations with the GOP, project counterparts and stakeholders during supervision missions as well as dedicated ICR consultations as part of the internal review process conducted at program closing. 40. Under Pillar A- Strengthening Disaster Response and Recovery Policies and Planning, the program enabled the LGU’s rapid request and access to national funding from the NDRRM Fund for recovery and reconstruction projects, enhanced the Government’s central risk data system by including the climate, disaster, and health-related baseline data of LGUs, and increased community participation in vulnerable provinces in TVET courses related to DRM and disease outbreaks. These efforts strengthened GOP’s institutional capacity to manage risks from climate change, natural disasters, and disease outbreaks through strengthened disaster response and recovery policies and planning. 18 Philippine Statistics Authority, 2025 19 Local Climate Investment Brief 2016-2020, CCC Page 13 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) 41. Under Pillar B – Strengthening the Resilience of Government Programs in Key Sectors , the program increased the compliance of NGAs and LGUs in disaster and climate budget tagging, integrated CCA- DRR measures into the local investment plans of highly urbanized cities, independent component cities, and priority vulnerable provinces, and updated PCIPs to integrate climate risk and resilience in priority investments. These results strengthened the GOP’s financial capacity to manage risks from climate change, natural disasters, and disease outbreaks through strengthened resilience of government programs in key sectors. 42. The PDO indicators were adequately designed to measure the results. The results selected to monitor progress toward achievement of the PDO reflected key areas of action and corresponded to the expected outcomes of the prior actions. The indicators were feasible, measurable, and clearly defined, with transparent calculation methods and data sources. They included a balanced mix of qualitative and quantitative targets that were attributable, relevant, time-bound, and sufficient. 43. The results indicator targets were strategic and ambitious, yet realistic and reasonable, with the exception of Results Indicator related to gender (Results Indicator A3). The targets took into account the COVID-19 situation at the time of project preparation, as well as the varying capabilities and absorptive capacities of stakeholders, particularly the NGAs and LGUs. The target for Results Indicator B1, which measured the percentage of NGAs and LGUs that complied with disaster and climate budget tagging, acknowledged the competing responsibilities and priorities of NGAs and LGUs in responding to both the COVID-19 pandemic and natural disasters. For Results Indicator A3, the baseline was set during the pandemic, when demand for TESDA’s TVET courses was extremely low and there was uncertainty about the economy’s recovery. During implementation post-pandemic, the target was exceeded significantly, which has contributed to the under-achievement of the gender-related sub- indicator. However, the target of 40% women graduates in construction, engineering, and mechanical training courses may have been too ambitious for the traditionally male-dominated sectors. For Results Indicator A1, the target recognized that not all vulnerable provinces (100%) would be affected by disasters, and when affected, not all would necessarily require funding. 44. The results indicator targets were aligned with the relevant agencies’ programs. This enabled progress monitoring through the agencies’ reporting mechanisms. In addition, the programmatic TA for Cat DDO 4 facilitated regular monitoring and evaluation of the program through progress reports on TA activities. The following paragraphs detail the achievement of the program’s two objectives, as measured by the relevant indicators. The Results Framework in Annex 1 provides a summary of the progress achieved at completion. PDO Outcome 1: Strengthen the institutional capacity of the Government of the Philippines to manage risks through strengthened disaster response and recovery policies and planning Pillar A: Strengthening Disaster Response and Recovery Planning Result Indicator A1. Vulnerable Local Government Units (LGUs) submit Disaster Rehabilitation and Recovery Plans as required to rapidly request and access funding from the NDRRM Fund for recovery Page 14 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) and reconstruction projects. (Baseline: 0, Target: 50% of vulnerable LGUs affected by disasters that require funding) 45. As of November 2024, 61% or 11 out of 18 vulnerable provinces affected by Super Typhoon (ST) Rai in 2021, the Northern Luzon earthquake in 2022, and Typhoon Egay in 2023 have submitted RRPs to request funding from the NDRRM Fund for their local rehabilitation and recovery efforts. As of program completion, all fund transfers for approved requests had been completed, enabling the prompt initiation of post-disaster recovery projects. These include the repair, rehabilitation, and construction of various infrastructures such as damaged school buildings, drainage canals, and flood control projects, among others. The RRPs ensured that funding requests align with the LGUs’ recovery and reconstruction needs following a disaster. The Office of Civil Defense (OCD) noted during ICR consultation that the use of the RRPs contributed to fast-tracking the overall disaster recovery process as funding requests and reviews are done for the entire RRP rather than on a per-project basis. This approach also eliminated the lengthy field validation process, which typically took 2-3 months, as rapid assessments were already conducted during the RRP formulation.  46. Key actions to achieve results under this indicator build on previous Cat DDOs' efforts to strengthen the technical capacity of LGUs and NGAs on risk-informed disaster recovery planning. In partnership with the NDRRMC and with World Bank support, the DOST developed the PlanSmart Ready to Rebuild web-based application. This tool systematically generates disaster rehabilitation and recovery plans using science-based information from GeoRiskPH and a pro-forma document template. The platform enables disaster managers to conduct pre-disaster recovery planning by simulating potential disaster scenarios based on risk-informed data. With the addition of the PlanSmart application, which leverages the GeoRiskPH platform, LGUs and NGAs are better equipped to transition from a reactive to a proactive approach to disaster recovery. The PlanSmart Ready to Rebuild Training Program, discussed in the next section, prioritized ST Rai and STS Nalgae-affected LGUs to support them in disaster recovery planning. Result Indicator A2. Climate, disaster, and health-related data of LGUs are included in the Government’s central risk data system. (Baseline: 0 LGUs, Target: 100) 47. Through the implementation of PlanSmart Ready to Rebuild Training program, 20 over 500 data managers, planning officers, DRRM officers, and other technical staff were trained to formulate hazards and risk-informed RRPs based on local-level baseline data and projected disaster impacts using the PlanSmart Ready to Rebuild. The series of trainings covered 139 LGUs in six highly vulnerable regions.21 The impact of this result is twofold: (i) available data in the GeoRiskPH was expanded with the inclusion of baseline data from 139 LGUs including demographic profile, land use and physical environment, critical facilities (health and education facilities), and local administrative boundaries; and (ii) the 139 LGUs now utilize the platform to inform DRM and overall local planning processes, particularly the development of DRM interventions. The availability of LGU baseline data and its 20 Feedback on the PlanSmart Ready to Rebuild Program can be found at this link: https://www.youtube.com/watch?v=J4yqFCGz1pg 21 These regions include the National Capital Region (Metro Manila), CALABARZON (Region IV-A), Central Visayas (Region VII), Caraga (Region 13), and Bicol Region (Region V). Participants included representatives from the Bangsamoro Autonomous Region of Muslim Mindanao. Page 15 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) inclusion in the GeoRiskPH informed the identification, selection, and prioritization of DRM strategies and projects including disaster recovery projects as it provided more accurate hazard and risk assessment needed for local planning. LGUs have noted that this improved the accuracy, availability, access and use of climate, disaster and health-related data. Further, it has supported them in their data collection and database management using the platform. LGUs valued the platform as it promoted efficient decision-making and prioritization by enabling them to focus their efforts and resources on the most vulnerable populations. Additional 76 LGUs that were not trained under the PlanSmart Ready to Rebuild Training Program also submitted their baseline data. 48. The PlanSmart Ready to Rebuild application is transforming disaster recovery planning process in the Philippines by using digital technology to formulate science-based and data driven disaster RRPs. LGUs are now equipped to prepare these plans before a disaster strikes and modify them when a disaster occurs. Thus, what used to be a 6–8-month process has been significantly reduced to 3-4 weeks using the PlanSmart web application. As earlier noted, the LGUs that were trained under the program now possess pre-disaster RRPs based on projected disaster impacts. Results Indicator A3. Increased community participation in vulnerable provinces in TVET courses related to DRM and disease outbreaks. (Baseline: 3,143 graduates, 18% women participation in construction, automotive, electrical, and metals engineering related courses; Target: 4,715 {50% increase from baseline}, women participation increased to 40%) 49. Targets under this Results Indicator have been partially achieved. The number of graduates increased from 3,143 to 62,734, exceeding the target of 4,715 (50% increase from baseline). This significant overachievement can be attributed in part to the baseline set during the pandemic, when demand for TESDA’s TVET courses was unusually low, and there was uncertainty about the economy’s recovery. With increased enrollment during the post-pandemic period, however, the overall number of graduates rose substantially, which contributed to the underachievement of the gender-related sub- indicator. The overall increase in relevant TVET graduates represents a significant jump in the number of community members from vulnerable LGUs who now possess critical skills needed for disaster response, rehabilitation, and recovery, including women. These graduates, particularly those in the areas affected by ST Rai in 2021, the Northern Luzon earthquake and STS Nalgae in 2022 helped in the repair of houses and other facilities damaged by disasters, including the repair or replacement of rafters, purlins, roofing, and electrical work among others. 22 This upskilling of local communities helped ensure the availability of relevant technical skills that are crucial for accelerating the rehabilitation and recovery of disaster affected communities. 50. On gender accomplishment, the number of women graduates from construction, automotive, electrical, and metals engineering related TVET courses substantially increased from 106 to 9,768 women.23 However, the share of women to the total number of graduates reduced from 18% to 17%. Despite this, the trainings inspired the women participants to pursue careers in different sectors including non-traditional or male-dominated trades, thereby increasing their economic prospects. The TESDA Women’s Center continuously prepares women both for employment and entrepreneurship, 22 According to NDRRMC, ST Rai recorded the highest number of damaged houses at 2.1 million housing units. 23 The baseline figure for women participation in 2021 was reported at 106 individuals covering four sectors (construction, metals, engineering, automotive courses). Page 16 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) equipping them with the necessary knowledge and skills that will nurture their innovativeness and strengthen competitive advantage. Additionally, the World Bank’s technical assistance on the review of selected training regulations on DRM-related TVET has strengthened policy dialogue and cooperation between TESDA and the Philippine Constructors Association (PCA).24 PDO Outcome 2: Strengthen the financial capacity of the Government of the Philippines to manage risks from climate change, natural disasters, and disease outbreaks. Result Indicator B1: Increased compliance of NGAs and LGUs in disaster and climate budget tagging. (Baseline: 10% of NGAs and 10% of LGUs complied with the budget tagging in 2020 {for the 2021 budget}; Target: 50% of NGAs and 30% of LGUs complied with the budget tagging) 51. The program exceeded its targets for this indicator with 71% of NGAs and 43% of LGUs complying with the budget tagging. This result is important in contributing to the achievement of PDO 2 on strengthening the GOP’s financial capacity to manage climate risks by: (i) ensuring that CCA and DRR measures are mainstreamed into government programs, specifically in investment planning, and (ii) enabling the government to track climate expenditures at the national and sub-national levels. According to DBM, government allocations for climate-related expenditures in 2024 is 38 percent higher than in 2021. The FY24 climate budget indicated that CCA-DRR remains the priority agenda at PHP 457 billion proposed climate budget, with most of the investments on climate change focused on climate-proofing the country’s food systems, government infrastructures, and flood mitigation actions. Through data and analyses derived from budget tagging, key investment priorities were identified, including the need to upgrade the country’s health facilities using climate risk information and to develop policies that integrate CCA-DRR approaches into medical and related health training courses. The provision of technical assistance, capacity building, and clear guidelines to address the challenges faced by NGAs and LGUs in budget tagging have been crucial in boosting compliance. 52. Climate budget tagging has played a significant role in mainstreaming climate-related expenditures in government planning by way of monitoring climate budget allocations. Given the increase in NGA and LGU compliance in budget tagging, CCC is shifting its focus to improving the system and enhancing institutional capacity. This shift aims to improve data management and analysis of CCET, which would enable the government to bridge the gap between tagging budget allocation and monitoring actual expenditure, ensuring more effective tracking and allocation of resources for CCA-DRR measures. Result Indicator B2: Local investment programs of highly urbanized cities (HUCs) and independent component cities (ICCs), and the priority vulnerable provinces integrate CCA-DRR measures. (Baseline: 13% (5/38) of HUCs and ICCs and 33% (8/24) of priority vulnerable provinces have local investment programs that integrate CCA-DRR measures. Target (2024): 100% (38/38) of HUCs and ICCs and 100% (24/24) of the priority vulnerable provinces have local investment programs that integrate CCA-DRR measures) 24In June 2022, TESDA and PCA signed a Memorandum of Agreement establishing PCA as the National Industry Board for the construction sector. As a TVET industry board, PCA supports TESDA in ensuring that skills training standards and regulations are responsive to labor market needs. Page 17 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) 53. At program’s completion, 97% (37/38) of HUCs and ICCs have approved local investment programs that integrate CCA-DRR measures. The local investment program of the remaining target HUC, Lucena City, has been drafted and is expected to be approved within the year (2025). In the case of priority vulnerable provinces, 100% (24/24) of provinces have developed local investment programs that integrate CCA-DRR measures. Additionally, 2 provinces—although not included in the list of the most vulnerable provinces—and 4 metropolitan areas were also targeted due to their high exposure to multiple hazards. These include some of the largest urban centers across the country: Metro Manila, Metro Cebu, Metro Davao and Metro Iloilo. 25 This helped ensure disaster and climate-resilient development is achieved across both urban and rural settings. With this, the program has exceeded its original target of 24 provinces, broadening the scope to include more high-risk areas and ensuring greater resilience and preparedness for disaster and climate-related challenges. 54. As a result, LGUs from HUCs and ICCs have prioritized flood control investments, urban greening and restoration/rehabilitation of public open spaces, and green-gray infrastructure for coastal defense to reduce climate-related risks and prevent the challenges they encountered in the aftermath of previous disasters. Catanduanes and Sorsogon, among the 24 vulnerable provinces, were severely affected by Super Typhoon Goni in 2020.26 Their investment programs focus on protecting flood- prone communities, enhancing infrastructure resilience with nature-based solutions, ensuring emergency services continuity, and establishing resilient health infrastructure and evacuation centers. For those that require funding support, the DENR assists provinces in preparing Project Concept Notes (PCNs) for CCA-DRR measures based on their investment programs and aligned with the National Adaptation Plan, to secure funding from development partners. Result Indicator B3: The Government has updated the PCIPs to integrate climate risk and resilience in priority investments. (Baseline (2021): 16 out of 60 PCIPs integrated climate risk and resilience in priority investments. Target (2024): 60 out of 60 PCIPs integrated climate risk and resilience in priority investments) 55. Through Prior Action 5, financial capacity to manage risks has been strengthened, specifically targeting investments to boost agricultural production with an emphasis on resilience to climate risks. Under the program, 67 out of the 60 (112%) PCIPs have been updated. The additional 7 PCIPs were from the 81 targeted under the Philippine Rural Development Project (PRDP). With this, the program has exceeded its original target of 60 PCIPs. These updated PCIPs include provinces which are particularly vulnerable to climate-related risks but have significant potential for agricultural production. This result is significant as PCIPs serve as a basis for identifying essential climate-resilient infrastructure investments and enterprise development initiatives that can be funded by the PRDP with counterpart funding from the LGUs. PCIPs have also played a key role in leveraging resources from NGAs, LGUs, and non-government organizations to finance interventions aimed at upgrading value chains for priority agricultural commodities. Through the PRDP, approximately 1.55 million farmers and fisherfolk have benefited, with 40% of them being women, from the agricultural assets and services provided. These figures represent beneficiaries whose assets and services were identified in the original 81 PCIPs under the PRDP. Of these, 67 have been updated during project 25 DENR (n.d.) Resilience Roadmaps with Investment Portfolios for Risk Resilience for Selected Climate Vulnerable Provines and Urban Centers. 26 Typhoon Goni displaced 61,000 families from the Bicol region and left over P1.23 billion worth of damages. Page 18 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) implementation using enhanced criteria focused on climate risk and resilience to better guide investment prioritization. 56. By utilizing the CRVA in the PCIP formulation, the government has prioritized resources and interventions that will mitigate the impacts of climate change on agricultural production, thus strengthening food security and the livelihoods of farmers and fisherfolks. These include construction of climate-resilient infrastructure, development of drought-resistant crop varieties, and enhancement of water management systems, among others. Ecosystem-based adaptations were also included such as afforestation and soil conservation practices. As of December 31, 2024, funding from NGAs, LGUs, donors, and NGOs in 60 provinces have leveraged cumulative resources amounting to Php 105.18 billion.27 These leveraged funds represent a 30% increase from the reported Php 80.8 billion in April 2021.28 C. OVERALL OUTCOME RATING AND JUSTIFICATION Overall Rating: Satisfactory 57. The Overall Outcome rating reflects the Satisfactory relevance of the Prior Actions to the PDO and the Satisfactory Efficacy of the program. The Cat DDO instrument provided a timely and efficient source of liquidity in the aftermath of Super Typhoon Rai and Severe Tropical Storm Nalgae which was instrumental in the country’s disaster response and recovery efforts. The program has achieved five out of six Results Indicators, with four of these exceeding the targets. Results Indicator A3’s target on overall training graduates was exceeded, while in terms of percentage, the target related to gender was not achieved, despite the overall number of female graduates also increasing dramatically. III. OTHER OUTCOMES AND IMPACTS A. POVERTY, GENDER AND SOCIAL IMPACTS 58. The program continued to support GOP efforts to mitigate the poverty impacts of climate change, natural disasters, and disease outbreaks. As a contingent financing operation, Cat DDO 4 provided immediate liquidity to the GOP to address urgent financing needs brought by ST Rai and STS Nalgae including support for the most vulnerable population affected by the disasters. As a policy operation, the reforms program’s analytical underpinnings emphasize the strong link between enhancing resilience, particularly among vulnerable groups including women and the poor, and poverty reduction. This objective was supported by the institutionalization of evidence-based planning which resulted in the development of more strategic plans that respond to the urgent needs of different populations and contexts. 59. Specific activities under Prior Actions 1, 2, 3, and 4 supported vulnerable LGUs with high poverty incidence, high susceptibility to hazards such as drought, strong winds, flooding, rain-induced landslides, storm surges, and are in critical and degraded watersheds. LGUs that face higher vulnerability to climate change and natural disasters fall under the lower income categories. 29 In 27 Department of Agriculture. 28 Cat DDO 4 Program Document, p.28. 29 Commission on Audit. 2014. Assessment of Disaster Risk Reduction and Management at the Local Level. Page 19 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) addition, targeting HUCs and ICCs for mainstreaming resilience measures (Prior Action 4) was strategic, as natural disasters can exacerbate critical issues like poverty and access to resources, livelihoods, and basic services, especially in urban areas. By emphasizing livelihood diversification with a focus on women participation (Prior Action 3), the program promotes sustainable income sources thereby enhancing capacity to cope with the impacts of disasters and climate risks. This was complemented by parallel efforts to create an enabling environment for climate-resilient agriculture (Prior Action 5) which likewise contributes to poverty reduction as agriculture is the primary income source for many rural communities and the sole livelihood of many of the poorest households in the country. 60. Cat DDO 4 was critical in supporting the recovery efforts of Bangsamoro Autonomous Region of Muslim Mindanao (BARMM) LGUs that were severely affected by STS Nalgae. 30 Through their inclusion in the PlanSmart Ready to Rebuild Program, 67 officials, nearly half of whom were female, developed their respective conflict-sensitive disaster recovery plans that addresses disaster impacts and climate change risks and integrate specific interventions designed to maximize positive impacts on conflict dynamics. B. ENVIRONMENTAL, FORESTS, AND NATURAL RESOURCE ASPECTS 61. The program supported policy reforms that have an overall positive impact on the natural environment and contribute to the resilience of ecosystems, communities, and industries. The inclusion of baseline data from LGUs in GOP’s national database helped capture the changes in baseline environmental/ hazard/ disease outbreak conditions of the LGUs brought by the impacts of natural disasters and climate change. Moreover, the adoption of CRVA is essential in reducing the impact of disaster and climate risks on agricultural and fisheries production, and food security among the most marginalized communities. Data-driven insights guide decision-making at local, sectoral, and national levels, enabling the design of targeted interventions that effectively address geographic- specific risks, including the efficient management and utilization of natural resources. These are reflected in local RRPs, PCIPs and local investments programs that were delivered under the program and are aligned with broader plans at national and sectoral levels. C. INSTITUTIONAL STRENGTHENING 62. The program was instrumental in strengthening the GOP’s capacity to manage risks from climate change, natural disasters, and disease outbreaks. Institutionalizing the use of data at all planning levels has enabled decision-makers to better understand disaster and climate-related risks, identify appropriate mitigation measures, and integrate these strategies into their plans and budgets. These were reinforced by innovations introduced under the program including the use of Plan Smart Ready to Rebuild automated planning tool to expedite the formulation of local RRPs and utilizing these to access funding from the NDRRM fund. This approach was pivotal in creating an institutional framework for timely rehabilitation and recovery efforts as well as in enhancing disaster preparedness 30The BARMM is an autonomous region in Southern Mindanao that was established in 2019 as the culmination of long-standing negotiations and peace talks between the GOP and the Moro Islamic Liberation Front. After decades of armed conflict, the region continues to face a myriad of challenges during the transition period. With a poverty rate of 63%, the BARMM is one of the poorest regions in the country. Page 20 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) from local to national levels. Through GeoRiskPH, key actors across various sectors and government levels gain access to baseline data and other pertinent information for effective planning. The platform also minimizes the reliance of LGUs on external technical experts and allows them to perform essential tasks ranging from hazards and risk assessments to risk-informed plan generation. Building on the success of the PlanSmart Ready to Rebuild program, the DOST, in partnership with concerned line ministries, is further enhancing risk assessment and risk-informed planning in key sectors through the development of (i) PlanSmart for Safe Schools; 31 (ii) PlanSmart for Sustainable Human Settlements;32 and (iii) PlanSmart Ready to Respond.33 These subsequent applications will sustain the use of hazards and risk information to better inform DRM interventions. Multi-sectoral preparedness and capacity were also enhanced through interventions that promote livelihood diversification and community participation in DRM-related courses as well as increased investments on climate-resilient agricultural and fisheries production. Together, these efforts foster a more sustainable and organized approach to disaster risk management and recovery across different sectors and levels of government. D. OTHER UNINTENDED OUTCOMES AND IMPACTS 63. The World Bank’s Technical Assistance program that was provided through Cat DDO 4 supported dialogue with the Department of Education on improving the resilience of schools to natural disasters. Destruction of school infrastructure due to climate-related events and other disasters exacerbate the already serious school infrastructure deficit. Consequently, the Department of Education requested support from the World Bank to prepare the Infrastructure for Safer and Resilient Schools Project (ISRS, P180936, US$500 million) to address the reconstruction of schools damaged by recent disasters and reduce the vulnerability of existing schools against different hazards. The ISRS was approved by the World Bank Board on June 28, 2024. The ISRS aims to make more than 1,200 schools across the Philippines, outside of Metro Manila, safer to disasters, especially earthquakes and typhoons. IV. BANK PERFORMANCE Overall Rating: Satisfactory 64. Preparation. The rationale at entry was strategic and relevant to the development priorities identified by both the GOP and the World Bank. The Program’s Prior Actions and Pillars were derived from an in-depth multi-stakeholder analysis of urgent needs and gaps that was informed by the implementation of broader plans such as the Philippine Development Plan, National Disaster Risk Reduction and Management Plan, National Climate Change Adaptation Plan, as well as lessons from Cat DDO 1 (P125943), Cat DDO 2 (P155656) and DRM DPL 3 (P171440) operations. This process 31 PlanSmart for Safe Schools is a web-based application for the Department of Education’s risk-informed school infrastructure planning and investment programming and school-based emergency preparedness and response planning. 32 PlanSmart for Sustainable Human Settlements semi-automates the formulation of Comprehensive Land Use Plans of LGUs. This helps LGUs identify safe development areas and properly site infrastructure, settlements, and risk reduction measures. 33 PlanSmart Ready to Respond is a customized automated planning tool for OCD’s disaster response operations. It allows for real-time tracking of at-risk regions, response assets, and capacities; semi-automation of pre-disaster risk assessments; and real-time impact reporting for faster, more efficient disaster response. Page 21 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) emphasized current limitations in the interrelated domains of risk reduction and climate adaptation which shaped the program’s focus and step-wise approach. It allowed the World Bank to develop a clear and measurable Policy and Results Matrix with results indicators that were appropriate in measuring the achievement of PDO outcomes and program targets that were attainable for implementing partners. The program’s M&E system was effectively integrated with that of partner NGAs, with reports being submitted to the DOF, an inter-agency Technical Working Group (TWG), and the World Bank. The TWG was established since Cat-DDO 1 to support the DOF and has been a functional platform for consultation, coordination, and monitoring of program implementation. 65. Key agencies within the GOP were engaged to ensure alignment with the government’s DRM reform program. These include the National DRRM Council, Office of Civil Defense (OCD), DOST, DILG, TESDA, DBM, CCC, DENR, and DA. The World Bank also discussed the operation’s design with the Government of Japan through the Japan-World Bank Global Facility for Disaster Reduction and Recovery, other development partners, such as the Japan International Cooperation Agency, the Asian Development Bank and the Agence Française de Développement to ensure complementarities of support and facilitate synergies. Internally, the team mobilized a diverse set of multi-sector experts to deepen the support for innovative DRM reforms in the Philippines. Of note is how the Cat DDO 4’s preparation was completed in just four months and became effective in less than a month - one of the fastest operations prepared in the EAP region. 66. Relevant risks that could prevent the achievement of PDOs were identified through an analysis and a series of discussions. These risks were detailed in the Program Document to guide program preparation from formulation of strategies to agreements on targets. The most significant were macroeconomic factors that could restrict fiscal space, the transition of leadership at local and national levels following the elections in May 2022, and the limited capacity of LGUs to implement and sustain reforms. Adequate mitigation strategies were integrated in the design including the selection of Prior Actions with solid legal foundation, engaging key agencies to secure their support and participation, and providing technical and capacity-building support. The World Bank also continued to provide technical support to DOF in leading the reform process as a key mitigation strategy. 67. Implementation. The transition to a new government in May 2022 did not significantly impact program implementation as the GOP remained committed to prioritize the advancement of its DRM program. This was facilitated by efforts of the World Bank such as carrying out rounds of consultations with the newly appointed officials to secure their buy-in. The DOF’s role as the convenor of line agencies remained vital in facilitating efficient coordination, monitoring program implementation, and sustaining policy dialogues. The World Bank also engaged in high-level policy dialogue with the DOF and participating NGAs to monitor the reform progress. 68. Two annual implementation support missions (ISMs) and technical missions in between were conducted to monitor implementation progress and assess results based on program indicators and targets. These involved a multi-disciplinary team with strong in-country presence and relationships with participating agencies which facilitated discussions on effective solutions for implementation challenges and helped sustain policy dialogue. Progress reports were documented in Aide Memoires and Implementation Status Reports (ISRs) which provide a comprehensive and forthright assessment Page 22 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) of implementation progress and issues. Due to the program’s closing, ISMs and ISRs did not continue beyond August 31, 2023, but the results monitoring continued. 69. Among the implementation challenges encountered are the varying capabilities, absorptive capacities and limited resources of NGAs and LGUs. At project implementation, several competing responsibilities and priorities were faced by NGAs and LGUs including responding to the pandemic and natural disasters. The World Bank effectively managed implementation risks by using mitigation measures identified during preparation. This included providing a comprehensive technical assistance program, supported through the World Bank-GFDRR, to help implementing agencies pursue reforms and achieve results targets. The technical assistance program was designed in close coordination with implementing agencies to ensure that the support provided was targeted to address the needs of NGAs and LGUs. Additionally, the World Bank continuously coordinated with development partners to ensure the effectiveness of the reform agenda and complementarity of support. Strong coordination with development partners continued throughout the implementation period. 70. In the aftermaths of ST Rai and Severe Tropical Storm (STS) Nalgae, the World Bank efficiently responded to the draw down request for disbursement of Cat DDO 4 funds.34 These were released less than 48 hours from request to allow the GOP to respond to the needs of affected communities. Funding from Cat DDO 4 was critical to response and recovery efforts following ST Rai as the GOP faced limited fiscal space due to the ongoing pandemic response. The technical assistance program linked to the operation allowed the World Bank to provide urgent just-in-time advisory (JIT) support to the GOP in the aftermaths of ST Rai and STS Nalgae. Technical missions conducted to advance this operation’s implementation coincided with the JIT support including (i) the conduct of rapid post- disaster damage and loss estimation for ST Rai; and (ii) preparation of comprehensive rehabilitation and recovery plans for both disaster events. The World Bank and GOP responded immediately by prioritizing Rai- and Nalgae-affected LGUs and providing executive training to national government decision-makers. V. RISK TO SUSTAINABILITY OF DEVELOPMENT OUTCOMES 71. After the Program’s close, the GOP’s strong commitment to strengthening its capacity to manage risks has been demonstrated in its adoption and expansion of the PlanSmart Ready to Rebuild planning tool. The OCD will be offering the training program to the remaining LGUs as part of their regular capacity building programs. In addition, TESDA has continued the delivery of DRM-related TVET courses to capacitate more communities with post-disaster recovery skills. CCC has also continued to implement disaster and climate budget tagging across all government agencies. This was further reinforced by the inclusion of Local CCET as an indicator in the Department of Interior Local 34The first tranche (US$80 million) and second tranche (US$120 million) were drawn on December 27, 2021, and January 4, 2022, respectively, to support GOP in responding to urgent humanitarian and early recovery assistance to regions affected by Super Typhoon Rai. The third tranche (US$300 million) was drawn on January 3, 2023, to support the urgent response and early recovery needs of Severe Tropical Storm Nalgae-affected regions. Page 23 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) Government’s Seal of Good Local Governance35 and the issuance of Commission on Audit Circular No. 2023-001 Guidelines in the Conduct of Audit of Programs, Activities and Projects with CCET under the General Appropriations Act. With changing vulnerability and risk profiles of local governments, the DENR and DA continue to assist other LGUs in CCA-DRR mainstreaming in investment planning and extend additional support in mobilizing funding. Given the country’s high vulnerability to natural disasters and the varying capacities of LGUs, sustained capacity-building at all levels is needed and will thus be continued and further strengthened under Cat DDO 5. VI. LESSONS AND NEXT PHASE A. LESSONS LEARNED 72. Strong partnerships are at the core of a program’s capacity to deliver results and drive complex reform initiatives. The DOF's role as the implementing agency fostered inter-agency coordination on DRM-related policy actions while promoting innovative approaches to financial protection. Strong collaboration among NGAs is necessary as DRM reforms are typically multi-sectoral and go beyond the mandate of a single agency. For instance, partnering with the Department of the Interior and Local Government as the oversight agency for LGUs as well as the Commission on Audit was instrumental to ensure LGU compliance to the reforms and participation to the Cat DDO 4 program. Leveraging partnerships with other agencies should be accompanied by well-defined coordination mechanisms. 73. Sustained engagement is essential to support countries in developing resilience to natural disasters and advancing the reform process. Cat DDO4 was a product of the World Bank’s long engagement with the GOP. The four stand-alone DRM-DPLs, complemented by technical assistance, and evidence- based analyses gradually enhanced the government’s technical capacity to strengthen its DRM system with emphasis on disaster preparedness and resilience. The Bank’s support has evolved over the years from providing basic support to GOP in implementing the Philippines DRM Law, to addressing more complex DRM challenges at the national level to cascading reforms to LGUs. Continuing policy dialogue with stakeholders during preparation and implementation is essential in securing broader support for the DRM reform agenda. Despite the change in administration in 2022, the DOF played a crucial role in bringing together key agencies involved in DRM to maintain support from the new government and ensure that the program's outputs align with needs and priorities. This was complemented by the World Bank’s rounds of consultations with the newly appointed officials to secure their buy-in. Annex 4 provides a detailed overview of the World Bank’s DRM engagement in the Philippines. 74. The use of the DPL with a Cat DDO instrument, complemented by a comprehensive TA program were essential in advancing the policy reforms that otherwise might have stalled. The Cat DDO 4 with its accompanying country dialogue and technical assistance was critical in advancing the policy reforms. The TA complemented GOP efforts and resources to ensure that reforms are implemented. 35The Seal of Good Local Governance is an award given by the GOP to LGUs that demonstrate excellence in governance across various areas, including transparency, financial administration, disaster preparedness, social protection, and environmental management. Page 24 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (P177125) It also included dedicated components for capacity building in critical reform areas. During ICR interviews, government agencies highlighted that the technical assistance for Cat DDO 4 and the regular monitoring and reporting on the status of results targets helped fast tracked the implementation of reforms. B. NEXT PHASE 75. In 2023, the GOP requested World Bank support for the preparation of a fifth DRM and Climate Cat DDO (P180585, US$500 million) to meet its ongoing need for contingent financing and to sustain the results of DRM reform process. The fifth Cat DDO aims to continue efforts to further strengthen the country’s resilience at the sectoral level, particularly in human development . The operation focuses on education, human settlements, and health sectors which are specifically vulnerable to climate risks. To ehance the resilience of these sectors, the next phase of the program aims to: (i) strengthen school infrastructure planning and investment programming; (ii) improve emergency preparedness and response capacities in schools; (iii) integrate disaster and climate resilience measures in land use planning and urban design; and (iv) integrate disaster and climate resilience measures in health infrastructure to facilitate the continuity of health services even during disasters and emergencies. Page 25 ICR DOCUMENT ANNEX 1. RESULTS FRAMEWORK @#&OPS~Doctype~OPS^dynamics@icrdpfresultframework#doctemplate A. RESULTS FRAMEWORK Indicators by Pillars Strengthening Disaster Response and Recovery Policies and Planning Baseline Closing Period (Current) Actual Achieved at Completion Indicator Name Value Month/Year Value Date Value Month/Year 0.00 Jul/2021 50.00 Sep/2023 61.00 Dec/2024 Comments on achieving targets Target exceeded. 61% of the vulnerable provinces affected by Super Typhoon Odette and Northern Luzon earthquake and Typhoon Egay submitted NDRRM Fund request using Rehabilitation and Recovery Program Vulnerable Local Government Units (LGUs) submit Disaster Rehabilitation (11/18 vulnerable provinces). 18 vulnerable provinces were affected by and Recovery Plan as required to various disasters. Of these, 11 submitted funding requests using their RRPs rapidly request and access funding including 8 of the 14 provinces affected by Super Typhoon Odette and 3 of from the NDRRMF for recovery and the 4 provinces affected by the Northern Luzon Earthquake. Moreover, 2 of reconstruction projects. these 3 provinces requested for additional funds due to Typhoon Egay. (Percentage) all fund transfers for approved requests had been completed, enabling the prompt initiation of post-disaster recovery projects. Information source: OCD 0.00 Jul/2021 100.00 Sep/2023 215.00 Dec/2024 Page 26 ICR DOCUMENT Comments on achieving targets Target exceeded.. 139 LGUs trained under the PlanSmart Ready to Rebuild Program submitted their baseline data for inclusion in the GeoRiskPH. This Climate, disaster, and health-related informed the formulation of pre-disaster rehabilitation and recovery plans data of LGUs are included in the of the 139 LGUs. The 139 LGUs now use the GeoRiskPH to inform their DRM Government's central risk data system and overall planning processes. Additional 76 LGUs that were not trained (GeoRiskPH). (Number) under the PlanSmart Ready to Rebuild Training Program, also submitted their baseline data. Information Source: DOST and OCD 3,143.00 Jul/2021 4,715.00 Sep/2023 62,734 Dec/2024 Comments on achieving targets Target partially achieved. The program recorded 62,734 graduates, exceeding the target of 4,715; women participation in construction, automotive, electrical and metals engineering related TVET courses Increased community participation in increased substantially from the baseline of 106 to 9,768. However, the vulnerable provinces in TVET courses share of women to the total number of graduates decreased from 18% to related to DRM and disease 17%.. outbreaks. (Number) Graduates from the areas affected by ST Rai in 2021, the Northern Luzon earthquake and STS Nalgae in 2022 helped in the repair of houses and other facilities damaged by disasters. Information source: TESDA Strengthening the Resilience of Government Programs in Key Sectors Baseline Closing Period (Current) Actual Achieved at Completion Indicator Name Value Month/Year Value Date Value Month/Year Increased compliance of NGAs in 10.00 Jul/2021 50.00 Sep/2023 71.00 Dec/2024 disaster and climate budget tagging. Comments on achieving targets Target exceeded. 71% of NGAs have complied with the budget tagging. Key (Percentage) activity that helped achieve target is the enhancement of the Climate Page 27 ICR DOCUMENT Change Expenditure Tagging (CCET) Helpdesk and the issuance of COA circular on Audit Policy Guidelines for CCET to ensure compliance with budget tagging. Information source: CCC 10.00 Jul/2021 30.00 Sep/2023 43.00 Dec/2024 Comments on achieving targets Target exceeded. 43% of LGUs have complied with the budget tagging. The Increased compliance of LGUs in program was able to exceed the target through the enhancement of the disaster and climate budget tagging. Climate Change Expenditure Tagging (CCET) Helpdesk and the issuance of (Percentage) COA circular on Audit Policyuidelines for CCET to ensure compliance with budget tagging. Information source: CCC 13.00 Jul/2021 100.00 Sep/2023 97.00 Dec/2024 Comments on achieving targets Target achieved. Currently, 97% (37/38) of HUCs and ICCs have approved Local investment programs of highly local investment programs that integrate CCA-DRR measures. The local urbanized cities (HUCs) and investment program of the remaining HUC, Lucena City, has been drafted independent component cities (ICCs), and is expected to be approved within the year (2025). Information source: integrate CCA-DRR measures. CCC (Percentage) 33.00 Jul/2021 100.00 Sep/2023 100.00 Dec/2024 Local investment programs of priority Comments on achieving targets Target exceeded. 100% (24/24) of priority vulnerable provinces have local vulnerable provinces integrate CCA- DRR measures. (Percentage) investment programs that integrate CCA-DRR measures. In addition, DENR expanded the target to include 2 more provinces and the urban centers of Page 28 ICR DOCUMENT Metro Manila, Metro Cebu, Metro Iloilo and Metro Davao. With this, the program has exceeded its original target of 24 provinces, broadening the scope to include more high-risk areas and ensuring greater resilience and preparedness for disaster and climate-related challenges. Information source: Department of Environment and Natural Resources (DENR) 16.00 Jul/2021 60.00 Sep/2023 67.00 Dec/2024 Comments on achieving targets Target exceeded.67 out of 60 PCIPs (112%) have integrated climate risk and resilience in priority investments. The additional 7 PCIPs were from the 81 targeted under the Philippine Rural Development Project (PRDP). With this, the program has exceeded its original target of 60 updated PCIPs. The Government has updated the PCIPs to integrate climate risk and As of December 31, 2024, funding from NGAs, LGUs, donors, and NGOs in resilience in priority investments. 60 provinces have leveraged cumulative resources amounting to Php 105.18 (Number) billion. These leveraged funds represent a 30% increase from the reported Php 80.8 billion in April 2021. Information source: DA Page 29 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred ICR DOCUMENT Drawdown Option (P177125) ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION A. TASK TEAM MEMBERS Name Role Robert Curle Jesse Reid Team Leader Agnes Chung Balota Team Leader Tomas JR. Sta.Maria Financial Management Specialist Elezor A. Trinidad Team Member Kevin C. Chua Team Member Rong Qian Team Member Jean Toledo De Pano Team Member Danica Cruz Gonzalez Team Member Lesley Jeanne Yu Cordero Team Member Benedikt Signer Team Member Madhu Raghunath Team Member Lilanie Magdamo Maitim Team Member Marilyn Tolosa Martinez Team Member Paula Beatrice Magcale Macandog Team Member Tatiana Skalon Team Member Yasuhiro Kawasoe Team Member Fides Barbara Babiera Borja Team Member Ruth Reyes Rodriguez Team Member Bianca Gutierrez Team Member Maria Theresa G. Quinones Team Member @#&OPS~Doctype~OPS^dynamics@icrannexstafftime#doctemplate B. STAFF TIME & COST Staff Time & Cost Stage of Project Cycle No. of Staff Weeks US$ (including travel and consultant costs) Page 30 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred ICR DOCUMENT Drawdown Option (P177125) Preparation FY22 27.685 108,258.44 Total 27.68 108,258.44 Supervision/ICR FY22 14.325 118,680.32 FY23 29.402 610,830.82 FY24 11.199 301,048.91 FY25 7.118 85,713.63 Total 62.04 1,116,273.68 Page 31 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred ICR DOCUMENT Drawdown Option (P177125) ANNEX 3. BORROWER, CO-FINANCIERS, AND OTHER DEVELOPMENT PARTNERS’/STAKEHOLDERS’ COMMENTS Comments from the GOP: The following comments on the draft ICR were received from the GOP through the Department of Finance from April 8 to 14, 2025: • Source. Kindly add footnote on the reference/source of the provided data: o At least 60 percent of the Philippines’ land area and 74 percent of its population are vulnerable to various natural hazards... o Typhoons averaging 20 per year, are a constant challenge… • Additional details on the GOP’s DRM Program: o Please add Chapter 15 to specify the portion in the PDP focusing on Accelerating Climate Change Action and Strengthening Disaster Resilience: .... as reflected in the Philippine Development Plan (PDP) 2023-2028 specifically under Chapter 15 Accelerate Climate Action and Strengthen Disaster Resilience. This serves as a guide for the GOP to recognize the need for collective action to mitigate the climate crisis, and strengthen resilience to disasters. o Please add the acronym RRP: The Risk Resiliency Program (RRP) identifies climate vulnerable LGUs for priority support… o Please provide additional information on the National Adaptation Plan 2023-2050: .... Additionally, the National Adaptation Plan 2023-2050 serves as a guide reference to RRP in establishing the country's adaptation priorities at a national level, with the goal of enhancing adaptive capacities and increasing resilience in communities, ecosystems and the economy against natural hazards and climate change. Thus, increasing its geographic focus to consider the eighteen (18) highly-exposed provinces to Climatic Impact Drivers under the NAP. • Additional background on Prior Action 4. o The RRP-PCB aims to bring government agencies both at the local and national level to work as one to meet common objectives on climate and disaster resilience. Moreover, it seeks to assist the GOP in delivering climate change adaptation and mitigation outcomes, particularly on strengthening the resiliency of natural ecosystems and the adaptive capacity of vulnerable communities to short and long term risks in key Philippine landscapes. • Para 45. We request that the indicated sentence be deleted as the PlanSmart was not yet utilized for ST Rai. PlanSmart was launched in the 2nd semester of 2022 while the RRPs for ST Rai were already completed in the 1st semester of 2022. The last sentence can be retained since ST Rai and STS Nalgae affected regions were really prioritized for the PlanSmart Training: For instance, vulnerable LGUs affected by ST Rai utilized PlanSmart to develop their RRPs, allowing them to quickly request for funding from the NDRRM fund for recovery and rehabilitation projects. The PlanSmart Ready to Rebuild Training Program, discussed in the next section, prioritized ST Rai and STS Nalgae-affected LGUs to support them in disaster recovery planning. • Confirmation of the statements and accomplishments reported under Results Indicators A1 and A2. On behalf of the DOST-PHIVOLCS, we affirm our agreements with the statements involving our agency and express our continued support for this important initiative. • Confirmation of the accomplishments reported under Results Indicator A3. TESDA has no further comments to the draft Implementation Completion and Results Report (ICR) for the CATDDO4 specifically on the "Increased community participation in vulnerable provinces in TVET courses related to DRM and disease outbreaks" indicator. • Results Indicator B3 Table 1, Results Framework, and Para 55. Remove the statement - "the 3 updated PCIPs are expected to be approved in early 2025" The 67 PCIPs are approved as of Dec 2024. The 3 PCIPs that were for approval as indicated in the previous ICCR draft/narrative are already approved, with Provincial Development Council Resolution dated before Dec. 31, 2024. Page 32 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred ICR DOCUMENT Drawdown Option (P177125) • Para 55. All updated PCIPs are from the 16 regions including BARMM. • Confirmation of the draft ICR report. We thank the Bank Team for preparing a comprehensive Implementation and Completion Results Report (ICR) for the CAT-DDO4. We likewise acknowledge and appreciate the efforts of the Implementing Agencies in completing the policy actions and achieving the targets under the Program, resulting in a Satisfactory rating which reflects the Government’s continued commitment to guiding the country’s climate and DRM initiatives in the right direction and further improving the same. Albeit the early closing of the loan in September 2023, we are pleased to note that five out of six results indicators were achieved, with most even being exceeded, and one indicator was partially achieved, specifically the percentage of women participation in construction, automotive, electrical, and metals engineering related to TVET courses under Prior Action 3. Considering this, we suggest exploring additional mechanisms or interventions that could be implemented by the TESDA and other relevant agencies to complement existing programs, and towards increasing female participation in traditionally male-dominated fields. Moreover, we recognize that through the CAT-DDO4, the Philippines was able to strengthen the institutional capacity of the agencies specifically in terms of using data to inform planning and decision-making processes. Given the critical role of data, we acknowledge that the Philippines should leverage innovative tools such as the PlanSmart and GeoRiskPH to gather relevant data and interpret these to better inform the leaders and decision-makers at both national and local levels, and generate more efficient and effective, and evidence-based solutions to our climate and DRM challenges. In this regard, please be informed that DOF has no further comments on the draft ICR and we defer to the comments/feedback from the implementing agencies on the specific data/information for the prior actions under their respective purviews. We look forward to the Bank’s further collaboration with the Government on our climate and DRM initiatives, including monitoring actions and results under the fifth DRM and Climate CAT-DDO. Page 33 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred ICR DOCUMENT Drawdown Option (P177125) ANNEX 4. SUPPORTING DOCUMENTS I. SUPPORTING DOCUMENTS FROM THE WORLD BANK GROUP 1. Global Facility for Disaster Reduction and Recovery (GFDRR). (2014). Understanding Risk in an Evolving World: Emerging Best Practices in Natural Disaster Risk Assessment Report. Retrieved from https://www.gfdrr.org/sites/default/files/publication/UR-Policy_Note_0.pdf 2. World Bank. (2014). Philippine Rural Development Project: Project Appraisal Document (PAD) (P132317). Retrieved from https://imagebank2.worldbank.org/search/34181246 3. World Bank. (2014). Philippine Rural Development Project: Project Appraisal Document (PAD) (P132424) . Retrieved from https://documents1.worldbank.org/curated/en/494411468296969716/pdf/Philippines-Rural- Development-Project.pdf 4. World Bank. (2017). Philippines: Lessons Learned from Typhoon Yolanda. An Assessment of the Post-Yolanda Short and Medium-Term Recovery and Rehabilitation Interventions of the Government. Retrieved from https://imagebank2.worldbank.org/search/28066362 5. World Bank. (2019). Philippines: Country Partnership Strategy for the period FY2019–2023 (Report No. 143605- PH). Retrieved from https://documents1.worldbank.org/curated/en/891661574699296055/pdf/Philippines- Country-Partnership-Framework-for-the-Period-July-2019-December-2023.pdf 6. World Bank. (2019). Mindanao Skills Development Strategy for Poverty Reduction. Retrieved from https://documents1.worldbank.org/curated/en/100201577772531157/pdf/Philippines-Mindanao-Skills- Development-Strategy-for-Poverty-Reduction.pdf 7. World Bank Group. (2020). Disaster Response and Rehabilitation in the Philippines: Public Expenditure Review Technical Report. Retrieved from https://documents1.worldbank.org/curated/en/815371611730636596/pdf/Disaster-Response-and- Rehabilitation-in-the-Philippines-Public-Expenditure-Review-Technical-Report.pdf 8. World Bank. (2020). Philippines Economic Update: Braving the New Normal. Retrieved from https://imagebank2.worldbank.org/search/32104090 9. World Bank. (2020). Transforming Philippine Agriculture: During COVID-19 and Beyond. Retrieved from https://imagebank2.worldbank.org/search/32171269 10. World Bank. (2021). Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option- Appraisal Program Information Document. Retrieved from https://documents1.worldbank.org/curated/en/823841632894049413/pdf/Appraisal-Program-Information- Document-PID-Fourth-Disaster-Risk-Management-Development-Policy-Loan-with-a-Catastrophe-Deferred- Drawdown-Option-P177125.pdf Page 34 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred ICR DOCUMENT Drawdown Option (P177125) 11. World Bank. (2021). Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option- Loan Agreement (Loan No. 9300-PH). Retrieved from https://documents.worldbank.org/en/publication/documents- reports/documentdetail/153791638371051778/official-documents-loan-agreement-for-loan-no-9300-ph 12. World Bank. (2021). Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option- Program Document (Report No. PGD304). Retrieved from https://documents1.worldbank.org/curated/en/147391641931244931/pdf/Philippines-Fourth-Disaster-Risk- Management-Development-Policy-Loan.pdf 13. World Bank. (2022). Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option. Implementation Status and Results Report of October 10, 2022 and September 1, 2023 14. World Bank. (2023). Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option- Aide Memoires of Implementation Support Missions: February 28 to April 1, 2022, and August 14 to 18, 2023. 15. World Bank. (2021). Climate Change Budget Tagging: A Review of International Experience. Retrieved from https://imagebank2.worldbank.org/search/34222193 16. World Bank. (2021). Philippine Rural Development Project: Second Additional Financing (P169025) Project Appraisal Document (PAD) . Retrieved from https://imagebank2.worldbank.org/search/33129277 17. World Bank. (2024). Philippine Rural Development Project with Advisory Services and Analytics (TF017788) Project Appraisal Document (PAD) . Retrieved from https://ppfonline.worldbank.org/search/c22e450c-4880- 4898-a763-8a181e86e73d II. FROM THE GOVERNMENT OF THE PHILIPPINES 1. National Disaster Risk Reduction and Management Council. (2020). Philippines: National Disaster Risk Reduction and Management Plan 2020-2030. Retrieved from https://ndrrmc.gov.ph/attachments/article/4147/NDRRMP- Pre-Publication-Copy-v2.pdf 2. National Economic and Development Authority. (2023). Philippine Development Plan (PDP 2023-2028). Retrieved from https://pdp.neda.gov.ph/philippine-development-plan-2023-2028/ 3. Climate Change Commission. (2022). Local Climate Investment Brief 2016-2022. Local Climate Change Investment Report 2016-2020. Retrieved from https://niccdies.climate.gov.ph/files/documents/LCIB_2016-2020_final.pdf Page 35 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred ICR DOCUMENT Drawdown Option (P177125) III. WORLD BANK ENGAGEMENT IN THE PHILIPPINES ON DISASTER RISK MANAGEMENT (DRM) 1. The Philippines has reformed the way the country deals with disasters. It has shifted its approach from reactive to proactive risk management with a significant focus on preparedness and resilience. The GOP has put in place policies and interventions because of its rich experience and lessons learned from previous disasters, in part through the support provided by Cat DDO 1 and 2, DRM DPL 3, and Cat DDO 4. 2. The Cat DDO 1 (P125943, US$500 million) was approved on September 13, 2011, and became effective on December 22, 2011. The operation closed on October 31, 2014. The Cat DDO 1 enhanced the capacity of the GOP to manage the impacts of natural disasters. It helped establish key national policies that form the foundation for the current DRM system. In particular, the Cat DDO 1 helped the GOP pursue the following: • Policy Area 1: The GOP: (i) established local DRRM offices with corresponding budget and personnel in all provinces, and majority of cities and municipalities; (ii) issued Guidelines on the use of Local Disaster Risk Reduction and Management funds; (iii) developed of monitoring system to track disaster-related financing; and (iv) rolled-out of training on post-disaster needs assessment and emergency response. • Policy Area 2: The GOP: (i) mainstreamed climate change disaster risk reduction measures in Provincial Development and Physical Framework Plans; and (ii) mainstreamed disaster risk reduction measures in key sectors (transport, health, and social protection). • Policy Area 3: The GOP prepared its National Disaster Risk Financing Strategy for the Philippines to manage the country’s financial exposure to natural hazards. 3. The Cat DDO 1 was fully drawn in December 2011 following Tropical Storm Washi that hit the southern Philippines. The Department of Finance sent a request to withdraw funds on December 27, 2011. The loan proceeds amounting to US$497,500,000 were disbursed to the GOP on December 29, 2011. 4. The Cat DDO 2 (P155656, US$500 million) was approved on December 22, 2015, and became effective on April 15, 2016. It was planned to originally close on September 30, 2018. Following the request for extension from the GOP, the operation closed on March 30, 2020. The Cat DDO 2 enhanced the technical and financial capacity of the GOP to reduce disaster risk and manage the socio-economic and fiscal impacts of natural disasters. It supported policy actions on (a) strengthening risk reduction investment planning and regulations; and (b) enhancing the financial capacity to manage natural disaster risks. The key policy reforms under Cat DDO 2 were as follows: • Policy Area 1: The GOP (i) formulated the Socio-Economic Resilience Methodology for national-level climate and disaster risk-informed planning and investment programming and mainstreamed in the Midterm update of the Philippine Development Plan; (ii) integrated disaster risk reduction measures into the revised National Building Code of the Philippines proposed in Congress; (iii) developed and approved the Provincial Commodity Investment Plans using the expanded Vulnerability and Suitability Assessment tool; (iv) developed the policy framework for post-disaster shelter assistance; and (v) developed multi-hazard vulnerability assessments of priority cultural heritage sites and integrated assessment methodology into the Philippine Standards for Conservation. • Policy Area 2: The GOP (i) developed a joint catastrophe risk insurance program for LGUs; (ii) established a baseline number of line agencies that developed and piloted their disaster risk financing and insurance strategies; (iii) established a roadmap for property catastrophe risk insurance pool for homeowners; (iv) developed a program for post-disaster emergency income support; and (v) updated and adopted a catastrophe risk insurance supervision database template. Page 36 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred ICR DOCUMENT Drawdown Option (P177125) 5. The Cat DDO 2 was fully drawn in 2018 following Category 5 Typhoon Ompong (Mangkhut). Although fully disbursed, the GOP opted to renew the Cat DDO 2 through 2020 to continue benefitting from the technical assistance program, which supported policy and institutional actions to increase the country’s physical and financial resilience to natural disasters. 6. The DRM-DPL 3 (P171440, US$500 million) was approved by the Board on April 9, 2020, and became effective on April 27, 2020. The development objective of the DRM-DPL3 was to strengthen the policy and institutional capacity of the GOP to reduce disaster risk, respond to, and recover from natural disasters. The operation focused on two policy areas: (a) strengthening the policy and institutional framework for disaster risk reduction and (b) strengthening the policy and institutional framework for disaster recovery. DRM-DPL 3 specifically supported the following policy reforms: • Policy Area 1: The GOP (i) used the GeoRiskPH, an integrated database system with related analytical interfaces, for the prioritization of public infrastructure projects; (ii) integrated CCA-DRR measures in the Environmental Impact Assessment process; (iii) integrated climate resilience and disaster risk reduction in the Local Disaster Risk Reduction and Management Plans of LGUs; and (iv) developed a multi-year investment for seismic risk reduction and retrofitting with specific budget allocation. • Policy Area 2: The GOP (i) built the capacity of LGUs to recover better from future disasters through the formulation of local disaster rehabilitation and recovery plan; and the development of local disaster risk financing strategies to finance post-disaster recovery; and (ii) improved post-disaster fund disbursement through the implementation of Emergency Cash Transfer Program and community-driven response mechanisms. 7. The loan was fully drawn on 30 April 2020 to provide for the urgent financing needs of the GOP to respond to the COVID-19 pandemic. Supported by a technical assistance program linked to this operation, assistance was also provided to the GOP in the development of LGU COVID-19 Recovery Guide. 8. The Cat DDO 4 (P177125, US$500 million) was approved by the Board on November 17, 2021, and became effective on December 22, 2021. It strengthened the GOP’s institutional and financial capacity to manage risks from climate change, natural disasters, and disease outbreaks, focusing on two policy areas: (a) strengthening disaster response and recovery policies and planning and (b) strengthening the resilience of Government programs. Cat DDO 4 specifically supports the following policy reforms: • Policy Area 1: The GOP (i) expedited the disaster recovery of affected vulnerable LGUs through the submission of Disaster Recovery Plans; (ii) included the climate, disaster, and health-related data of LGUs in the Government’s central risk data system (GeoRiskPH); and (iii) increased community participation in vulnerable provinces in technical vocational education and training courses related to DRM and disease outbreaks. • Policy Area 2: The GOP (i) adopted the disaster and climate budget tagging of NGAs and LGUs; (ii) integrated CCA and DRM measures in the local investment programs of HUCs and ICCs, and the priority vulnerable provinces; and (iii) integrated climate risk and resilience in Provincial Commodity Investment Plans. The loan was fully drawn in January 2023 to provide for the urgent financing needs of the GOP to respond to the Super Typhoon Odette in 2021 and Typhoon Paeng in 2022. Technical assistance was also provided to the GOP in the development of PlanSmart application, a web-based automated planning tool that systematically generates Disaster Rehabilitation and Recovery Plan using recovery planning pro-forma templates and science-based information. Page 37 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred ICR DOCUMENT Drawdown Option (P177125) Figure 4.1 Transformative DRM Reforms Supported by the Series of Cat DDOs Cat DDO 4 (P177125) • Inclusion of LGU climate, disaster and health-related data in the GOP’s central risk data system • Implementation of community-based DRM-related TVET (GeoRiskPH) • Enhancement of access to NDRRM Fund programs in vulnerable provinces • Development of an automated planning tool for disaster rehabilitation and recovery and its training • Conduct of NDRRM Fund Assessment and • Inclusion of LGU climate, disaster and health-related data program (PlanSmart Ready to Rebuild) Updating of Public Expenditure Review in the GOP ’s central risk data system (GeoRiskPH) • Implementation of community-based DRM-related TVET programs in vulnerable provinces • Enhancement of climate and disaster budget • Development of automated planning tool for disaster • Integration of climate resilience in the Provincial Commodity Investment Plans tagging rehabilitation and recovery and its training program • Integration DRR and CCA measures in investment programs of cities and vulnerable provinces (PlanSmart Ready to Rebuild) • Implementation of Seismic • Development of pre-disaster local Rehabilitation and DRM DPL3 (P171440) Resilience Investment Program Recovery Plans • Development of Framework for • Use of integrated hazard and risk assessment in Resilient Housing and Shelter • Enhancement of NCDDP-DROM for COVID-1 9 pandemic policy-making and investment planning Programs response • Integration of hazard and risk assessment • Development of local DRF strategies • Development of LGU Recovery • Development and implementation of Emergency Cash (GeoRiskPH) in environmental impact assessment Guide from COVID-19 Transfer Program • Updating of local DRRM plans using integrated hazard • Development of LGU Recovery Guide from COVID-19 • Enhancement of LGU capacities on and risk analysis (GeoRiskPH) disaster preparedness for ef ective • Implementation of Earthquake Resiliency Program disaster response and recovery (Ready to Rebuild Program) • Development and adoption of DRFI strategy by • Development of vulnerability assessment for 55656) sector agencies (DPWH, DepEd, DOH, NIA) agriculture • Integration of DRR-CCA in the revisions to the National Building • J oint catastrophe risk insurance program for • Integration of DRR in the community-driven development • Multi-hazard vulnerability assessment of priority LGUs and social protection programs Cat DDO 2 (P1 cultural heritage structures and assessment Code of the Philippines • Design of property catastrophe risk insurance • Development of a socio-economic resilience tool methodology adopted in the Philippine Standards for • Development of a Post-Disaster pool for homeowners • Development of Rehabilitation and Recovery Planning Conservation Shelter Policy Framework Guide (through GFDRR TA) • Development of Rehabilitation and Recovery • Updating and adoption of catastrophe risk Planning Guide (through GFDRR TA) insurance database template • Mainstreaming climate change and disaster risk reduction (CCA-DRR) in the Provincial Physical Framework Development Plan • Development of Disaster Risk Finance and • Integration of DRR in the community-driven Insurance Strategy Cat DDO 1 (P125943) • Expanding coverage of Safe Hospitals Program development and social protection programs • Development of a Catastrophe Risk Model • Structural assessment and retrof tting of bridges Implementation of the Philippine Disaster Risk Reduction and Management (DRRM) Law • Establishment of functional local DRRM of ces • Development of DRRM project and f nancial monitoring platform Physical Resilience Financial Resilience Social Resilience TRA NSFORMATIVE DRM REFORMS Page 38 The World Bank Fourth Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred ICR DOCUMENT Drawdown Option (P177125) Figure 4.2 Cat DDO 4 Ex-post Results Chain Page 39