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Philippines Tries to Attract Private Sector Funds for Rebuilding

  • Reuters

A man is silhouetted as he builds a wooden house in an area destroyed by Typhoon Haiyan, in Palo November 19, 2013.

A man is silhouetted as he builds a wooden house in an area destroyed by Typhoon Haiyan, in Palo November 19, 2013.

The Philippines is compiling a typhoon reconstruction plan, but it still needs to win budget support from Congress and attract funds from the private sector and donors with ideas likely to shape President Benigno Aquino's legacy.

Aquino, who was criticized for the slow start to relief efforts for more than four million people displaced by one of the strongest storms ever to make landfall, faces the task of rebuilding at least 1.2 million houses, 600 schools and 500 hospitals and clinics destroyed or damaged by super typhoon Haiyan.

The government said on Friday the death toll had risen to 4,919, with 1,582 people missing.

It is holding meetings with the private sector and international aid agencies before submitting, possibly next week, a supplementary budget to Congress to fund recovery and reconstruction estimated to be as large as $5.8 billion.

“The problem with the discussion on the supplemental budget is we are rushing the funds but we still do not know what the plan is,” said Malou Tiquia, president of political strategy consultancy Publicus Asia.

Manila has set priorities such as shelter, resettlement and rebuilding livelihoods, yet the plan lacks details the private sector and foreign aid agencies need to determine how they can help in the long term.

“We're calling on government to provide strong leadership in developing that recovery framework,” said Orla Murphy, regional humanitarian manager at Oxfam, adding that foreign aid agencies could help devise rebuilding plans.

“This recovery is going to take years, because it is not only building back, it's building back better, looking at the hazard profile,” Murphy said.

A scandal over lawmakers' misuse of so-called pork barrel funds had already become the biggest crisis of Aquino's three-year rule, hurting his reform and anti-corruption agenda, before the storm smashed into the central Philippines on Nov. 8 and exposed the government's lack of preparation.

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However, the typhoon devastation could also bring his redemption.

“The monster disaster could offer him an opportunity to regain his popularity,” said Earl Parreno, a political analyst. “As long as things are moving and people are seeing concrete results on the ground, Aquino can weather criticism.”

Lawmakers have committed to work double time to pass the planned supplemental budget, which is mainly composed of $331.4 million of funding that had previously been set aside for the pork barrel funds that sparked the scandal; the Supreme Court this week ordered the return of such funds to the treasury.

Public Works Secretary Rogelio Singson said construction had started on temporary accommodation and classrooms using tents and tarpaulins, but noted that work still needs to be done on identifying sites for permanent housing away from disaster-prone areas.

“The more lasting solution which is being formulated by the government is something we have to wait for, like resettlement areas,” said Manuel Pangilinan, chairman of the private-sector-led Philippine Disaster Recovery Foundation, which launched a global campaign for donations via mobile phone in support of a U.N. drive to raise $310 million for the Philippines.

“They have to tell us where they will situate the no-build zones,” he said. “What is clear to us is that the victims cannot wait, for a plan from either us or from the government.”