The Dominican Republic will be better able to address the impact of adverse natural events, particularly those related to climate and health, through the US Development Policy Loan with a Deferred Drawdown Option for Catastrophes (Cat-DDO) $230 million approved today by the World Bank. Cat-DDO can be quickly disbursed to respond to a natural disaster. The objective of the program is to expand the capacity of the Dominican Government to strengthen the preparation, response and recovery against disaster risk, benefiting the Dominican population, especially those people in the most vulnerable conditions.
“The Government of the Dominican Republic has been promoting strong reforms to improve Disaster Risk Management and Climate Change Adaptation, in particular to improve preparation and planning with timely information, as well as to limit the fiscal and economic impact they have disasters on the most vulnerable households. This new World Bank Cat DDO operation, after the first one that closed last year, demonstrates the seriousness of these reforms. We thank the World Bank for its renewed support for this very important agenda for the country,” said José Manuel (Jochi) Vicente, Minister of Finance of the Dominican Republic.
These reforms include actions such as the implementation of the first fiscal strategy for disaster risk management, the strengthening of land use regulations to guarantee better planning, as well as safer housing and construction, better geospatial information, essential to assess risks, and better adoption of mitigation and social protection measures to respond to emergencies. This package of reforms helps the country to be better prepared to face and manage the risks of adverse events that threaten its economic stability and the security and well-being of its population.
The Dominican Republic ranked 32 out of 181 countries in the Bündnis Entwicklung Hilft World Risk Index 2021. This high level of exposure to risks from disasters and weather can mean significant economic impacts. The occurrence of adverse events increasingly highlights the critical need for accelerated action that strengthens the country’s resilience and adaptation in an inclusive manner.
“Disasters hit the poorest population hardest, particularly women and girls. With this operation we are supporting the Dominican government to maximize disaster risk management and the reduction of inequalities in the long term, protecting the livelihoods of its people in the event of an adverse natural event and promoting sustainable growth without leaving anyone behind. back,” said Alexandria Valerio, World Bank resident representative in the country.
This second Cat-DDO will be made immediately available to the Government in an emergency context due to adverse natural events, as well as public health. The first operation of its kind in the Dominican Republic was approved in 2018, providing immediate liquidity in 2020 to support mitigation and recovery efforts during the Covid-19 pandemic.
