WB gives $479-M loan for poverty reduction


The World Bank (WB) approved a total of $479 million loan for the government’s anti poverty program that particularly targets 8 million victims of Super Typhoon Yolanda in 477 poor rural areas.

The funding would benefit the newly-established National Community Driven Development Project (NCDDP), which was formerly called Kalahi-CIDSS (or the Kapitbisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services, that would gather victims sentiments and needs for better service delivery, said the statement of the WB board of directors.

Social Welfare Secretary Corazon “Dinky” Juliano-Soliman said: “Expanding Kalahi will significantly boost our efforts to alleviate rural poverty while responding to the needs of Yolanda survivors.”

“When people from poor communities come together to discuss their challenges and how best to address them collectively, they usually come up with solutions that are responsive and appropriate to their needs. That’s the essence of community-driven development,” Soliman added.

The Kalahi-CIDSS is a joint project by the government and WB since 2002 which focused more on community-driven development (CDD) inputs, with solutions, analysis, project proposals, implementation and maintenance coming directly from community members.

According to WB, the Kalahi-CIDSS already provided for nearly 6,000 local projects worth $265 million, benefiting over 1.6 million households in the poorest municipalities and provinces in the Philippines.

As NCDDP, this scaled up version of the Kalahi-CIDSS will provide “investment grants to support priority needs of the poorest municipalities throughout the country, as well as eligible communities affected by Typhoon Yolanda.”

“The recently approved $479-million loan from the WB will contribute to the $8 billion needed for the Reconstruction Assistance on Yolanda [RAY] Plan. The NCDDP will assist our efforts in the swift reconstruction of disaster-affected areas through financing and implementing community-driven projects,” Finance Secretary Cesar Purisima said.

“The use of community-driven development approaches in post-disaster situations has shown to be effective in accelerating community reconstruction and efficiently putting money for priority needs of communities around the world,” WB Social Development Specialist Sean Bradley said.

WB Country Director for the Philippines Motoo Konishi said that food and other necessities increased by 12 percent because of the implementation of CDD approaches in the country.

Konishi added that, based on recent studies, the unit cost of investment projects completed by beneficiaries is 8 to 76 percent lower than similar public sector works, which proved the effectivity of community approaches in implementation of good projects.

“CDD approaches tap into local-level knowledge about who is poor, what constrains people to improve their lives, and how to design projects to address these constraints, thus improving poverty targeting. NCDDP therefore fits well into the World Bank Group’s twin goals of helping the country eliminate extreme poverty and promote shared prosperity,” Konishi said.

In Luzon, the NCDDP will target communities in the regions of Mimaropa (Occidental Mindoro, Oriental Mindoro, Marinduque, Romblon and Palawan); Cordillera Administrative Region (Abra, Apayao, Benguet, Ifugao, Kalinga and Mountain Province); Central Luzon (Nueva Ecija); and Bicol (Albay, Camarines Norte, Camarines Sur, Catanduanes, Masbate and Sorsogon).

In the Visayas, the project will target the areas of Western Visayas (Aklan, Antique, Capiz, Guimaras, Iloilo and Negros Occidental); Central Visayas (Bohol, Cebu, Negros Oriental and Siquijor); and Eastern Visayas (Biliran, Eastern Samar, Leyte, Northern Samar, Western Samar and Southern Leyte).

In Mindanao, the project will target Northern Mindanao (Bukidnon, Camiguin, Lanao del Norte, Misamis Occidental and Misamis Oriental); Soccksargen (Cotabato, Sarangani and Sultan Kudarat); Caraga (Agusan del Norte, Agusan del Sur, Dinagat Island, Surigao del Norte and Surigao del Sur); Zamboanga Peninsula (Zamboanga del Norte, Zamboanga del Sur and Zamboanga Sibugay); and Davao (Compostela Valley, Davao del Norte, Davao del Sur and Davao Oriental).


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