News 11 Jan 2018
Three Pacific island states, Samoa, Tonga and Tuvalu, will receive a US$15 million loans/grants package from the Asian Development Bank (ADB) for the Pacific Disaster Resilience Program, aimed at strengthening disaster resilience by facilitating faster early recovery and reconstruction.
The programme builds on the experience of Cook Islands, which was provided with a US$10 million policy-based loan from ADB’s Ordinary Capital Resources in last year to fund the Cook Islands Disaster Resilience Program.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
The Pacific Disaster Resilience Program in the Cooks was the first time ADB provided disaster contingent financing through innovative use of policy-based lending.
In December 2017, ADB Board of Directors approved a total of US$15 million in financing for the Pacific Disaster Resilience Program, to help strengthen Samoa, Tonga, and Tuvalu’s resilience to disasters.
ADB’s assistance will include loans worth US$3.1 million each to Samoa and Tonga.
It will also include grants worth US$2.9 million each to Samoa and Tonga and US$3 million to Tuvalu.
All three grants are financed from the Asian Development Fund, ADB’s grant-based development financing vehicle.
An ADB-supported US$2 million technical assistance grant will help the three countries implement priority resilience building activities and share their experiences.
“This programme will facilitate faster early recovery and reconstruction which will significantly reduce the secondary economic and social costs normally caused by delays in reconstruction activities following a disaster event,” Climate Change Specialist from ADB’s Pacific Department Hanna Uusimaa says.
The Pacific Disaster Resilience Program fills a financing gap experienced by many Pacific countries hit hard by disasters.
It provides a predictable and quick-disbursing source of financing for early response, recovery, and reconstruction activities, and supports priority actions in disaster risk management in participating countries.
The programme supports regional collaboration towards strengthened disaster risk management and disaster risk financing, while also encourages the sharing of experiences between Pacific countries, in close alignment with the work of other development partners, and under the guidance of the region’s own framework for resilient development.
Additionally, it addresses risks pertaining to disaster events that would normally exhaust annual contingency budgets or emergency funds, but may not be cost effectively covered by insurance.
Visit ADB for more information.
(Picture caption: Clean-up crews check out damage caused by a tsunami in the Pacific region.)