The Philippines, an island arc in the middle of the Pacific Ocean, has one of the most dynamic economies in Southeast Asia. However, the archipelago is marked by a high exposure to natural disasters and great vulnerability to climate change. AFD focuses its action on natural risk management and prevention and sustainable urban development, while supporting the decentralization process.
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More effectively managing natural disasters and climate change

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The Philippines is exposed to major risks of earthquake, volcanic and weather-related disasters and is one of the most vulnerable countries to the impacts of climate change.

Cities are the most exposed to extreme weather events, as shown by Typhoon Haiyan in 2013, which was on an unprecedented scale, causing substantial human and material damage. In the Philippines, some 70% of municipalities are threatened, particularly in coastal areas. It is for this reason that the Filipino public authorities have made local adaptation to climate change a national priority and are calling on international solidarity.

Sandal Pleaser Red Delight Red Women's 662 AFD has answered the call:

  • We have financed technical assistance to help three local authorities prepare climate action plans. The objective: integrate climate change and disaster prevention into the urban planning process;
  • Since 2015, we have also been building the technical and financial capacities of 52 cities in natural disaster prevention and management;
  • Following Typhoon Haiyan, and France’s commitment to support the affected populations, we have financed the NGO ACTED for its project in the city of Guiuan. It was the entry point of the typhoon in the Philippines and was literally destroyed. The objective: rehouse 126 families and help them get back into an income-generating activity.

Developing urban mobility

Developing urban mobility

The transport sector is a high emitter of CO2 and particulate matter, which pollute the air and affect the health of city dwellers. The challenge for the Philippines: promote mobility that is at the same time affordable for all, reliable, efficient and environmentally friendly.

AFD is cofinancing, with the World Bank, the future bus rapid transit (BRT) network in the city of Cebu, the second largest city in the archipelago, with some 800,000 inhabitants. The outcome:  an efficient transport system, which is more comfortable for 300,000 users and less polluting. This pilot project should inspire other cities in the country.

Supporting decentralization


The Philippines, an archipelago with over 7,000 islands and over 40,000 local authorities, is a territory marked by geographical disparities. Decentralization is consequently a major strategic challenge for the Government. It delegates responsibility to cities and municipalities for a group of services to improve the lives of citizens: waste management, access to drinking water, construction of dykes to protect against rising water levels, development of eco-cities, etc. However, local authorities often lack sources of revenue to implement them and ensure that they operate properly.

Since 2009, AFD has been supporting the Filipino Government for its decentralization program. We build the financial capacities of local authorities and thereby significantly increase their leeway. A first loan focused on local climate strategies, while the second, allocated in 2014, integrated natural disaster prevention and management.

A new loan is being considered to improve local public services.

461 million
euros committed
4 million
euros for CSOs

The Philippines, an archipelago with over 7,000 islands, has approximately 100 million inhabitants. The country, an island arc located in the Pacific Ring of Fire, is marked by intense seismic and volcanic activity.

It is the second most populous country in Southeast Asia and also has the most dynamic economy in the region: over 6% of growth a year between 2010 and 2015. However, wealth is unevenly distributed and poverty still affects a large part of the population. This situation is exacerbated by a high exposure to natural disasters, as reminded by Typhoon Haiyan, which devastated the Philippines in 2013. The country is therefore one of the most vulnerable to climate change.

AFD has been operating in the country since 2009, where it promotes green and inclusive growth. It supports the Government for its decentralization program, implements disaster management and prevention policies, and promotes sustainable urban development. To enhance the effectiveness of its action, it has established partnerships with the Asian Development Bank and World Bank. AFD has committed EUR 461m in the country via loans.

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This map is for illustrative purposes only and does not engage the responsibility of the AFD Group


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  • Climate
  • Infrastructures
  • Sustainable Cities
Funding type

Funding type

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  • Grant
  • Sovereign Concessional Loan


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Research document

Creating Alliances to Accelerate Commercially Viable Sanitation - Lessons learned from the toilet board coalition and its market-based initiatives

The past decades have seen a growing appreciation of the role of market-based approaches in driving global development. Many coalitions of public and private players have emerged to promote them. ...
Nov 2015