To manage disaster-related risk to the development effectiveness of our lending program in the following strategic areas: (i) country programming and portfolio management, (ii) Bank's policy, procedures and financial products, and (iii) an organizational structure that focuses on ex-ante risk reduction services. The plan also specifies the performance indicators for these steps.The resources requested from the JSF would be focused primarily on operationalizing the first strategic area of Bank Action. Specifically, for countries designated as "high risk," the regional departments of the Bank will evaluate the disaster risk in cooperation with the country and adjust country strategies and programming to strengthen the management of the risk and to protect the effectiveness of the Bank's portfolio. Beginning in year 1 of the Plan, 3 high risk countries annually (for a total of 9 countries) will benefit from:Country-specific risk evaluations and workshops: Together with the high risk countries, the Bank will undertake technical work, tailored to the needs of country programming, in order to evaluate (i) probable losses and consequences for country's macroeconomic performance and capacity to finance recovery/reconstruction; (ii) geographical areas and sectors at high risk that warrant priority intervention ("high consequence" sectors and assets that, in the case of their failure, have negative multiplier effects on development ¿ including, "critical infrastructure and lifelines" such as, schools/hospitals, airports/ports, water treatment plants and distribution lines, gas/oil lines, etc.); (iii) institutional capacity to manage risk. Financial instruments. In strategic area (ii) above, JSF resources would finance a working group process to explore the appropriate role for the Bank in sharing and hedging countries' catastrophe risk. Options include the Bank as captive insurer of its own risk, as facilitator in the provision of private risk management services, and the Bank as insurer of client risk. The accompanying studies will evaluate how potential financial products that may be offered by the Bank can provide hedge cover, reduce moral hazard and orient countries to adopt risk management commensurate with the scale of the problem they face. Expected outputs include studies and a white paper leading to recommendations for potential Bank financial instruments. Establish effective partnership to promote coordinated actions and mobilize resources to support countries' disaster risk management. The program will support a Japanese specialist to work with the Bank in the implementation of the Action Plan and, in particular, to facilitate the establishment of an effective partnership to promote coordinated actions and mobilize resources to support countries' development of adequate risk management capacity.
Project Detail
Country
Regional
Project Number
RS-T1197
Approval Date
August 10, 2005
Project Status
Closed
Project Type
Technical Cooperation
Sector
ENVIRONMENT AND NATURAL DISASTERS
Subsector
INTEGRATED DISASTER RISK MANAGEMENT
Lending Instrument
-
Lending Instrument Code
-
Modality
-
Facility Type
-
Environmental and Social Impact Category (ESIC)
-
Total Cost
USD 100,000.00
Country Counterpart Financing
USD 0.00
Original Amount Approved
USD 100,000.00