As the Philippine Government prepares to invest as much as $170 billion into the country’s infrastructure over the coming years, national newspaper the Manila Standard reports that assistance has been sought on risk transfer and insurance from Lloyd’s of London and the World Bank.
The country’s Finance Secretary Carlos Dominguez III reportedly met with representatives of Lloyd’s of London and the World Bank last week to explore the kinds of support the re/insurance market can provide, as well as the range of structures available to cover investments in government assets and properties.
Officials are looking predominantly to protect its capital investments against disasters and incidents related to climate change, according to the newspaper.
Structures able to protect the government’s assets against typhoons, earthquakes, extreme rainfall, would likely be sought; with parametric triggers offering a feasible way to protect assets and ensure rapid payouts for rebuilding and recovery.
Government officials may even turn to the catastrophe bond market, with the support of the World Bank, as parametric cat bonds could provide the capital protection the government requires.
Dominguez explained during the visit that the Philippines government could spend as much as $170 billion to improve its physical infrastructure over the coming years, with projects likely to include underground metros, long-span bridges, light rail and overland railways, airports and seaport infrastructure.
