THE Asian Development Bank (ADB) is ready to provide a $500 million loan to the Philippines if the country declares a state of emergency due to El Niño.
The assistance will come from the Disaster Risk Improvement Project 2 (DRIP 2) that provides short-term financing after disasters, ADB Country Director for the Philippines Andrew Jeffries said last Friday.
Authorities have warned of a potentially strong impact from El Niño, which is expected to affect the country beginning this quarter up to the first three months of 2027.
Jeffries noted that parts of the country were already expecting lower-than average rainfall and said that there remained uncertainty over the severity of the weather pattern’s effects.
ADB researchers are looking into the likely impact on the Philippines, he added.
The Manila-based lender last month cut its outlook for Philippine economic growth to 3.3 percent for this year, from 3.8 percent previously, and that for 2027 to 5.1 percent from 5.3 percent.
The 2026 projection falls below the government’s downwardly revised 3.5- to 4.5-percent target for the year while the 2027 figure is near the bottom-end of the 5.0- to 6.0-percent goal for 2027-2028.
The ADB cited the war in the Middle East and potential risks from El Niño, which could also drive inflation higher and further limit economic growth.
