Philippines need $1 billion to reconstruction from international donors

14.10.09 - Philippines - Author: asia news ia - Comments: (0)
Tags:

The Philippines will be seeking at least $1 billion from international donors for reconstruction after devastating back-to-back storms highlighted the country’s vulnerability to climate change report in Wednesday.

At least 712 people were killed and 7 million affected, while the cost of damage to crops and fisheries was estimated at $396 million. Another $114 million of infrastructure was damaged.

The government said the donor conference may take place in late November or early December, after the U.N. and the World Bank assess total damage from the storms.

The Philippines was looking for grants to fund reconstruction, followed by concessional loans and commercial borrowings. The Philippine reconstruction commission may recommend issuing of special bonds to fund the project, Arroyo said.

Damage caused by the storms may shave 0.3 to 0.4 percentage points from the country’s gross domestic product, which is projected to grow between 0.8 percent and 1.8 percent this year.

Remittances from Filipinos working abroad, projected to rise 4 percent this year to $17.1 billion, could counter the losses. The money sent home by 10 million overseas workers is the driving force behind domestic spending, which is the backbone of the economy.