ADB ready to help Philippines deal with El Niño

The Asian Development Bank (ADB) is prepared to aid the Philippines in mitigating the impacts of El Niño. The ADB can utilize its existing standby emergency assistance facilities upon government declaration of a state of emergency. This support can be accessed through the $500 million loan facility under the Second Disaster Resilience Improvement Project, designed to help the country reduce and manage disaster risk through rapid financing during natural hazards or health emergencies.

ADB Philippines country director Andrew Jeffries informed reporters that this facility is replenishable and currently not in use. However, Jeffries emphasized that the Philippine government has not requested assistance at present. According to Jeffries, the facility is intended for immediate funding after disasters, particularly as El Niño is a near-term risk projected to peak in November and potentially become the strongest on record.

While the ADB anticipates the Philippine economy to grow by 3.3 percent this year and 5.1 percent in 2027, recent research indicates that El Niño may lead to persistent slow productivity growth in hot and dry economies, impacting Southeast Asian economies for an extended period as agriculture accounts for a significant portion of output and employment.