City Disaster Insurance Pool Project (ADB-51312-001)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
Countries
  • Philippines
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Government of Philippines
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Humanitarian Response
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Jul 2, 2024

Disclosed by Bank Sep 25, 2018

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to ADB website, the Philippine City Disaster Insurance Pool (PCDIP) will be structured as a dedicated insurance pool to provide cities with cost-effective, parametric insurance providing near-immediate payouts for post-disaster response. It seeks to narrow the funding gap between available funds and post-disaster response costs at local government unit (LGU) level in the event of medium-to-high severity events. PCDIP will allow the cities to become self-sustaining in managing disaster risk and protecting and rehabilitating their assets and infrastructure in the event of damage. 

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The ADB categorized the project E&S risks as 'FI-C'.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated on one of the involved companies' websites, in support of the Philippine Department of Finance (DOF), the ADB engaged a consortium led by RMS Inc., and supported by EMI, Vivid Economics (VE), and Willis Towers Watson (WTW), to develop a pioneering city catastrophe insurance pool for the Philippines. The structure of the PCDIP, pricing and coverage were anchored on a modeled index using the RMS earthquake and typhoon cat models for the Philippines. EMI led the development of the asset exposure database for the ten (10) cities of the Philippines that were selected to serve as pilot cities.

As stated on the companies' websites:

Vivid Economics is a strategic economics consultancy firm with broad sustainability and macroeconomic capabilities. We help clients in all sectors around the world successfully navigate the risks and opportunities presented by the economy-wide transition to a more sustainable future.

In business since 1986, Return Management Services, Incorporated is considered a pioneer in the reverse logistics industry. Throughout our history and today, RMS is known for working to develop innovative custom solutions to reverse logistics challenges around the world. Regardless of the challenge, RMS promotes superior solutions across industry lines that effectively save time and reduce costs through its four main services.

EMI - Earthquakes and Megacities Initiative, Inc.'s mission is to advance knowledge, policy, and practice of urban disaster risk reduction, focusing on megacities and fast-growing metropolises. 

Willis Tower Watson provides data-driven, insight-led solutions in the areas of people, risk and capital.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - EMI - Earthquakes and Megacities Initiative, Inc. Contractor Technical Cooperation
- - - - Return Management Services (RMS) Inc. Contractor Finance
- - - - Vivid Economics Contractor Finance
- - - - Willis Tower Watson (WTW) Contractor Technical Cooperation

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contact information provided at the time of disclosure. 

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main

How it works

How it works