On 30 July 2010, ADB approved a Cluster TA for Enabling Climate Change Responses in Asia and the Pacific. Disaster Risk Finance for Total Climate Risk is a subproject under the cluster TA's Strategic Priority V: Promoting Climate Resilient Development. The subproject will assess potential disaster risk financing (DRF) options for climate-related risk for selected cities in Viet Nam in terms of feasibility, demand, and effectiveness. The TA is funded through the Japan Fund for Poverty Reduction.
|Project Name||Enabling Climate Change Responses in Asia and the Pacific - Disaster Risk Financing for Total Climate Risk (Subproject 6)|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Finance / Finance sector development
|Gender Equity and Mainstreaming||No gender elements|
|Description||On 30 July 2010, ADB approved a Cluster TA for Enabling Climate Change Responses in Asia and the Pacific. Disaster Risk Finance for Total Climate Risk is a subproject under the cluster TA's Strategic Priority V: Promoting Climate Resilient Development. The subproject will assess potential disaster risk financing (DRF) options for climate-related risk for selected cities in Viet Nam in terms of feasibility, demand, and effectiveness. The TA is funded through the Japan Fund for Poverty Reduction.|
|Project Rationale and Linkage to Country/Regional Strategy||
Traditionally, developing countries have relied heavily on ex post government budget allocations, public borrowing and international assistance to finance their disaster relief, early recovery and reconstruction efforts. This practice has resulted in delays in reconstruction, exacerbating the indirect impacts of disasters. The additional post-disaster pressure on public resources has also had adverse implications for the achievement of long-term social and economic development goals.
Over the past decade, there has been increasing interest in proactive, ex ante financing mechanisms via public-private partnerships (PPP) to help address these issues. These mechanisms allow the participating country to transfer and manage disaster risk via private sector finance and insurance mechanisms before a disaster occurs. The mechanisms are typically developed with the support of private sector reinsurance and risk modeling companies, which quantify and estimate disaster risk. Ex ante DRF mechanisms complement ex post arrangements, creating a long-term solution for sustainable and timely DRF.
Viet Nam is highly exposed to natural hazards, in particular hydrometeorological hazards, and its susceptibility to the effects of climate change will raise its level of disaster risk. The subproject will assist two cities in the country to develop ex ante DRF mechanisms. The subproject''s urban focus reflects the fact that urban areas face unique and rising disaster risk and climate change challenges and account for an increasing share of Viet Nam''s total population and economic productivity, yet have received relatively little attention to date in the development of DRF solutions. The Government of Viet Nam has set a 50% urbanization goal by 2025; and urban areas already accounted for 70% of GDP by 2010.
The subproject will be complemented by additional activities under RETA 7812, a separate JFPR-funded DRF TA, which will focus on the development of DRF options in two cities in Indonesia and two cities in the Philippines that face both geophysical and hydrometeorological risks.
|Impact||Participating governments increase appropriate reponses to climate change and disasters with support from civil society and the private sector.|
|Description of Outcome||Participating governments are able to integrate climate change and disaster responses with social and economic development goals|
|Progress Toward Outcome|
|Description of Project Outputs||
(i) Risk profiles and risk models completed and available to Viet Nam that highlight the disaster-related consequences of climate change.
(ii) Consensus reached on an appropriate DRF mechanism for each city.
(iii) Consultation, training, and dissemination activities completed to increase awareness within Viet Nam regarding IDRM
(iv) Project management units (PMU) established
|Status of Implementation Progress (Outputs, Activities, and Issues)||
The project is being implemented in three phases: Phase 1: development of disaster risk profiles for selected medium-sized urban areas in Viet Nam, culminating in the selection of two project cities; Phase 2: development of in-depth hazard and loss models for each of these two cities, leading to the identification and development of DRF options tailored to the disaster risk circumstance, capabilities and interests of each one; Phase 3: selection of one DRF mechanism, following an independent review of all Phase 2 options.
A Project Working Group was formed in 2013 comprised of the Ministry of Construction, Ministry of Finance (MoF), Ministry of Agriculture and Rural Development (MARD), Ministry of Natural Resources and Environment (MONRE) and the Ministry of Planning and Investment (MPI). The working group convened in March 2013 and June 2013 to consider city selection criteria and to evaluate recommendations made by the project consultants on final pilot city selections.
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation||Throughout the inception and implementation of the subproject, planning workshops and training courses will be held to engage a wide range of stakeholders from national and local government agencies, civil society organizations, academic institutions, and the private sector. The results of the subproject will be disseminated widely to stakeholders in Viet Nam as well as elsewhere in Asia and the Pacific through ADB reports, regional conferences, and other fora to keep the public informed and to mobilize support for improved financial management of disasters.|
|Responsible ADB Officer||Benson, Charlotte|
|Responsible ADB Department||Sustainable Development and Climate Change Department|
|Responsible ADB Division||SDGG|
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
|Concept Clearance||27 May 2010|
|Fact Finding||30 Nov 2010 to 03 Dec 2010|
|Approval||09 Dec 2011|
|Last Review Mission||-|
|Last PDS Update||19 May 2014|
|Approval||Signing Date||Effectivity Date||Closing|
|09 Dec 2011||-||09 Dec 2011||30 Nov 2014||30 Nov 2015||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||1,000,000.00||0.00||0.00||0.00||0.00||1,000,000.00||09 Dec 2011||853,437.93|
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|Title||Document Type||Document Date|
|Enabling Climate Change Responses in Asia and the Pacific (Cluster TA): Technical Assistance Completion Report||TA Completion Reports||May 2017|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
|Title||Document Type||Document Date|
|Strengthening City Disaster Risk Financing in Viet Nam||Reports||Dec 2015|
|Tăng cường Năng lực Tài chính cho Rủi ro Thiên tai cấp Thành phố ở Việt Nam||Reports||Dec 2015|
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