#1UNIVERSITY OF 1908 THE IPPINES Disaster Risk Financing in the Philippines: A Three-Year Snapshot, 2018-2020 Kristoffer B. Berse, Ph.D. 1,2 & Lianne Angelico C. Depante¹ 1 Research and Creative Work, University of the Philippines Resilience Institute 2 UP National College of Public Administration and Governance#2Outline of Presentation 1. Introduction a. Research Questions b. Methodology 1. DRF in the Philippines a. Sources of DRM Funding in the Philippines b. Mapping of DRF Flows in the Philippines c. Damage and Losses (per Hazard) d. Damage and Losses (per Geographic Area) e. DRF Gaps per Geographical Area 1. Conclusion and Recommendations#3Research Questions 1. What are the different sources of DRM funding in the Philippines? 1. Who are the intended users of these funds? 2. Which can be used for disaster risk reduction (prevention and mitigation, preparedness), AHA, response, and rehabilitation and recovery? 1. How much DRM funds have been allocated in recent years (2018-2021)? 1. Which regions have received the most funding? 2. For what hazards? 3. Are allocated funds sufficient to meet needs?#4Methodology Desk Review of Databases: UN OCHA, databases of bilateral and multilateral sources, aggregators, CSOs Official Government Documents: DBM, COA, OCD Situational Reports Data Limitations Scope Coverage: 2018-2021 Limited data collection period: ~4 weeks Data Availability О No one-stop source of disaster-related data in the Philippines О No disaggregated funding data per DRM phase and response cluster No consolidated local DRM funding data Damage and losses confined only to agriculture, infrastructure and private properties#5Sources of DRF in the Philippines Fund Flows in Billions of Pesos International FY 2018 FY 2019 FY 2020 FY 2021 222.6 145.5 188 50.2 National 24.9 23.2 22.8 26.4 Local 32 33.8 25.9 27.8 0% 25% 50% 75% 100% Note: Figures are in billions of peso#6Which can be used for different DRM phases? Sources National Government NDRRMF QRF PSF Risk Reduction Regular PPAs of DOST, DILG, Agency Programs DPWH, DND-OCD, etc. Government Financing (Loans) Supplementary Programs Local Government LDRRMF (MF) LDRRMF (QRF) Other Internal LGU Funds General Development Fund, GAD Fund Other LGUs AHA Response Rehabilitation and Recovery * DOF's DMAF DOLE,DSWD CARED, MRRP DA's Crop Insurance, DTI DILG's ADM LBP, DBP, SHFC, SBC, GSIS, SSS, Pag-IBIG#7Which can be used for different DRM phases? Sources UN, M/BFIs, and INGOS Pooled Funds Global Index Insurance Facility (World Bank) Market Instruments World Bank's Catastrophe Bonds Contingent Credit World Bank's Catastrophe Deferred Drawdown Option Loans and Grants (ODA) Private Sector and Local CSOs Public Private Partnership Internal DRM Programs Private Donations Property Insurance Risk Reduction AHA Response Rehabilitation and Recovery PDRF's Resilient Cities/Municipalities Leadership Program, Safe Schools Program CERF, DREF, START Fund CSOs#8DRM Fund Flows in the Philippines PH Gov Bilateral and Multilteral Financing Institutions GAA NDRRMF Loans Parametric Insurance PPP P Center DOF-Risk Pooling Indemnity Insurance GSIS DB, SHFC, LandBank, Pagibig Selected NGAS QRF Agency Programs 4PS, ADM, KALAHI-CIDSS Disaster- Specific R&R Fund -DA Crop Insur SAROZ NGA Supplementary budget/ Reprogramming of savings LDRRMF LGU Budget General Dev Fund GAD Fund - NEDA/DOF -DOF MDTF, DOF Risk Pool LGU OF-MDFO Loans & Grants. (e.g. ODA) Contingent Credit + Market Instruments (e.g. CatDDO, CatBonds) Pooled Funds NEDA(?) Standby Loans, Catastrophe Bonds Parametric Insurance START Fund CERF International NGOs For the full resolution, please visit: http://bit.ly/Ph-DRF_Map Affected Population Humanitarian Ald UN Agencies Private Sector SHFC IFRC Local CSO Remittances Direct Donations General Public#9DRF Flows per Hazard (2018 - 2021) Types of Disaster Frequency 2018 2019 2020 *2021 Total (OCD Situation Reports) Hydrometeorological 28 9.05 7.64 825.65 84.82 927.16 Volcanic Eruption 2 0.14 1.1 1.23 Earthquake 7 4.93 0.87 5.81 Disease Outbreak 4 1.66 1.07 1,896.68 803.48 2,702.88 El Niño 1 Flash Flood and Landslide 2 0.02 0.02 Conflict in Mindanao (Not in OCD Situation 1 42.49 10.39 15.88 0.39 69.16 Reports) Uncategorized Total 4,398.67 2,885.7 1,020.45 115.68 8,420.5 4,452 2,909.76 3,760.63 1,004.37 12,126.76 Source: Various online databases, and OCD's Situation Reports of Major Disaster Events (2018-2021) for frequency *as of April 2021#10DRF Allocation per Geographic Area (2018-2021) Source: Estimates of regional QRF based on IRA and DBM's Budget of Expenditures and Sources of Financing Region | Ilocos Region Region II Cagayan Valley - Region III Central Luzon Region IV A - CALABARZON Region IV B - MIMAROPA Region V - Bicol Region Region VI - Western Visayas Region VII Central Visayas Region VIII - Eastern Visayas Region IX - Zamboanga Peninsula Region X - Northern Mindanao Region XI - Davao Region Region XII - SOCCSKSARGEN Region XIII CARAGA BARMM CAR NCR 2018 2019 P457,315,050.00 2020 2021 P474,634,800.00 P406,229,932.58 P435,384,069.00 P390,462,150.00 P426,608,100.00 P412,154,199.98 P441,733,506.68 P912,533,850.00 P951,196,350.00 P743,476,385.58 P796,833,881.48 P1,182,035,550.00 P1,015,221,300.00 P877,002,063.93 P939,942,373.73 P335,047,050.00 P365,321,250.00 P360,743,996.94 P386,633,718.14 P444,745,800.00 P485,094,900.00 P462,008,219.30 P495,165,428.00 P674,883,900.00 P725,180,100.00 P612,823,561.58 P656,804,421.38 P749,200,950.00 P808,155,450.00 P542,828,068.76 P581,785,521.89 P422,168,100.00 P461,468,550.00 P461,236,158.62 P494,337,958.37 P297,748,950.00 P332,953,650.00 P470,055,616.10 P341,559,619.08 P507,888,750.00 P555,535,650.00 P430,915,463.51 P461,841,220.56 P431,375,550.00 P465,159,000.00 P395,911,214.81 P424,324,801.88 P343,923,750.00 P374,554,350.00 P591,244,956.50 P375,785,440.77 P303,589,350.00 P317,059,200.00 P323,887,425.33 P347,132,039.79 P311,336,700.00 P341,794,200.00 P435,662,153.78 P249,835,200.00 P272,484,000.00 P253,010,615.85 P271,168,573.74 |P1,600,732,650.00 P1,767,914,100.00 P429,027,963.99 P459,818,259.78#11Damage and Losses per Geographic Area (2018-2021) Region Region I-Ilocos Region Region II - Cagayan Valley Region III Central Luzon Region IV A - CALABARZON Region IV B MIMAROPA Region V - Bicol Region Region VI - Western Visayas Region VII - Central Visayas Region VIII - Eastern Visayas Region IX - Zamboanga Peninsula Region X - Northern Mindanao Region XI - Davao Region P11,108,591,435.00 P290,959,888.00 2018 2019 2020 2021 P796,932,318.00 P17,311,885,174.00 P3,813,318,123.00 P7,801,004,040.00 P6,336,363,824.00 P463,566,604.00 P3,679,146,026.00 P372,157,428.00 P916,047,951.00 P10,098,010,833.00 P3,985,973.74 P2,032,780,447.00 P1,465,268,130.00 P2,700,352,640.00 P4,417,242,044.00 P4,862,846,870.00 P19,540,660,316.00 P281,941,127.80 P591,536,504.00 P137,717,328.00 P284,092,065.00 P206,914,005.40 P5,000,000.00 P319,890,505.00 P645,575,784.00 P215,123,405.00 P415,049,200.40 P310,808,121.00 P345,937,693.00 P28,309,638.00 P741,000.00 P23,342,996.00 P13,209,178.27 Region XII - SOCCSKSARGEN P54,019,651.00 Region XIII CARAGA P124,587,334.00 BARMM P636,253,691.00 CAR P6,239,886,513.00 P1,687,545,362.00 P1,592,952,118.00 NCR P0.00 P17,000,000.00 P723,633,505.00 Source: OCD's Situation Reports P129,711,042.30#12Damage and Losses per Geographic Area (2018-2021) In billions of Philippine Pesos 0 2 4 6 8 10 12 14 16 18 20 Source: OCD's Situation Reports of Major Disaster Events (2018-2021) Loss and Damage (2018) Loss and Damage (2019) Source: 2018 OCD Situation Reports Source: 2019 OCD Situation Reports Loss and Damage (2020) Source: 2020 OCD Situation Reports Loss and Damage (2021) Source: January- April 2021 OCD Situation Reports#13Summary: DRF Gap per Geographic Area (2018-2021) Region 2018 2019 2020 2021 Region - Ilocos Region -10,651.28 Region II - Cagayan Valley -16,921.42 Region III Central Luzon - Region IV A CALABARZON Region IV B - MIMAROPA Region V - Bicol Region -5,423.83 809.88 183.67 -3,386.71 487.63 99.17 -390.70 435.38 -7,388.85 441.73 -2,935.67 796.83 -9,221.01 935.96 -1,697.73 -1,099.95 -2,339.61 386.63 -3,972.50 -4,377.75 -19,078.65 213.22 Region VI - Western Visayas 83.35 587.46 328.73 449.89 Region VII - Central Visayas 749.20 808.16 537.83 581.79 Region VIII - Eastern Visayas 102.28 -184.11 246.11 79.29 Region IX - Zamboanga 297.75 22.15 470.06 328.35 Peninsula Region X - Northern 507.89 209.60 402.61 461.10 Mindanao Region XI - Davao Region 431.38 465.16 395.91 400.98 Region XII-SOCCSKSARGEN 343.92 320.53 591.24 375.79 Region XIII-CARAGA 179.00 317.06 323.89 217.42 BARMM 311.34 -294.46 0.00 435.66 CAR -5,990.05 -1,415.06 -1,339.94 271.17 NCR 1,600.73 1,750.91 -294.61 459.82 Note: Figures are in millions of pesos. Highlights in orange signify DRM financing gap. QRF estimates for 2020 and 2021 are undervalued due to lack of local revenue data other than the IRA. Figures for 2021 are as of April of the year. Sources: OCD Situation Reports, IRA, and DBM's BESF#14DRM Financing Gap (2018-2020) 2018 2019 2020 In billions of Philippine Pesos -20-19-18-17 -16 -15 -14 -13 -12 -11 -10 -9 -8-7-6 -5 -4-3-2 -1 0 1 2 3 4 56 Source: Own calculation based on damage and losses data from OCD's situation reports and estimates of regional QRF based on IRA and DBM's BESF#15Conclusion 1. There is no centralized system for monitoring DRM funding in the Philippines. 1. Based on best available data, some regions seem to need more DRM funding than others. о The largest financing gap in the past three years, 2018-2020, was observed in four regions in Luzon, namely, Cagayan Valley (Region II), Mimaropa (Region IV-B), Bicol (Region V), and the Cordillera Administrative Region (CAR). By contrast, only two regions in the Visayas and Mindanao, particularly, Eastern Visayas (Region VIII) and Bangsamoro Autonomous Region for Muslim Mindanao (BARMM), were estimated to have inadequate QRF vis-à-vis cost of damage in 2019.#16Key Recommendations 1. Advocate for an open and standardized reporting mechanism to effectively map out national and local fund flows for NGAS, LGUs, private sector, and CSOs, including humanitarian and official development international assistance. 1. Conduct a more comprehensive review of disaster damage and losses based on the Post-Disaster Needs Assessment (PDNA) reports of all disasters in the past 10 years or so.#17Maraming salamat! Thank you! f UPResilienceInstitute UPResilience UP Resilience Institute www https://resilience.up.edu.ph/ [email protected] (+632) 924 2904 Loc 2770 UP Resilience Institute, Magsaysay Ave., cor. Apacible St., University of the Philippines Diliman, Quezon City