fbpx 48259-001: Strengthening the Enabling Environment for Disaster Risk Financing (Phase 1) | Asian Development Bank

Regional: Strengthening the Enabling Environment for Disaster Risk Financing (Phase 1)

Sovereign (Public) Project | 48259-001 Status: Active

The TA will develop (i) a diagnostics methodology to assess the current DRF landscape and enabling environment in ADB's DMCs, and (ii) a toolkit of actions to strengthen the enabling environment for DRF, supporting the establishment of comprehensive DRF strategies linked to solvent risk transfer markets.

Project Details

Project Officer
Chatterjee, Arup Kumar SDSC Request for information
Country
  • Regional
Modality
  • Technical Assistance
Sector
  • Finance
 
Project Name Strengthening the Enabling Environment for Disaster Risk Financing (Phase 1)
Project Number 48259-001
Country Regional
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9007-REG: Strengthening the Enabling Environment for Disaster Risk Financing (Phase 1)
Technical Assistance Special Fund US$ 700,000.00
TA 9007-REG: Strengthening the Enabling Environment for Disaster Risk Financing (Phase 1) (Supplementary)
Technical Assistance Special Fund US$ 600,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Finance / Insurance and contractual savings

Gender Equity and Mainstreaming No gender elements
Description The TA will develop (i) a diagnostics methodology to assess the current DRF landscape and enabling environment in ADB's DMCs, and (ii) a toolkit of actions to strengthen the enabling environment for DRF, supporting the establishment of comprehensive DRF strategies linked to solvent risk transfer markets.
Project Rationale and Linkage to Country/Regional Strategy It is consistent with ADB's Operational Plan for Integrated Disaster Risk Management, 2014 2010, which supports inclusive and environmentally sustainable growth in part by supporting _the development of DRF instruments and wider DRF strategies for households, businesses, and governments, enhancing the public and private financial management of residual disaster risk._ The TA is also consistent with the Regional Cooperation and Integration (RCI) Strategy adopted by ADB in 2006, which clearly states that _there is growing awareness that natural disasters require collective and coordinated responses at the regional level_ that include regional public goods and regional financial mechanisms. In addition, the proposed TA is consistent with the draft Pakistan Country Partnership Strategy (CPS) 2015 2019, currently being discussed with the Government of Pakistan, where it is noted (Para 29) that ADB will explore DRF options to better smooth the financial implications of natural hazard-related disasters. The proposed TA is also consistent with the Sri Lanka CPS 2012 2016, which highlights the need to develop Sri Lanka's financial sector in order to offer a wider range of financial products and services by catalyzing private investment and enhancing the effectiveness of public investment (Para 30).
Impact Fiscal resilience of ADB's developing member countries (DMCs) to disaster risk is strengthened (Operational Plan for Integrated Disaster Risk Management, 2014 2020a).
Project Outcome
Description of Outcome Commitment of DMCs to strengthen the enabling environment for disaster risk financing instruments increased
Progress Toward Outcome A major change in scope and implementation arrangements, increase in TA amount, and extension of TA completion date was approved on 26 July 2016 to strengthen ADB's support to the Vulnerable 20 Group of Ministers of Finance initiative. It intends to (i) expand project activities under both outputs of the TA by including two additional focus countries, and (ii) increase the number of consultants to accomplish the additional work. The V20 initiative aims to strengthen and promote economic and financial cooperation and action to address climate change risks and opportunities, with the aim to facilitate the transition to a low carbon, resilient global economy. The Governments of Fiji and Nepal agreed to participate in the TA as the two additional focus countries. The TA amount increased by $600,000 from ADB Technical Assistance Special Fund (TASF-V), bringing the total TA amount to $1,300,000. The TA completion date has also been extended from 31 December 2017 to 31 December 2018.
Implementation Progress
Description of Project Outputs

Tools to assess and strengthen the enabling environment for DRF developed

DRF capacity of DMC stakeholders strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)

Output 1: The diagnostic assessment work took place in Sri Lanka and Pakistan in 2016 and 2017, and in Fiji from late 2017 to early 2018. Diagnostic assessment work in Nepal started in the first quarter of 2018, with a second mission in October following a delay due to the busy schedule of government counterpart agencies. The final country assessment reports have been completed for Pakistan, Fiji and Sri Lanka and are published. The report for Nepal has been completed and is being processed for publication. A draft how-to guide has been prepared and will be finalized following completion of all four of the country assessment reports.

The Government of Nepal has indicated interest in continuing support from ADB to enhance its DRF arrangements, in line with its National Strategic Action Plan for Disaster Risk Reduction: 2017 2030. The TA will support scoping work specifically to determine options for strengthening the disaster resilience of municipal governments under the country's new federal system of government, in line with a recommendation from the draft Nepal country diagnostic assessment already prepared under the TA.

Output 2: Two national workshops were held in each of Fiji, Pakistan, and Sri Lanka in 2017 and early 2018. National workshops were held in Nepal in March and October 2018. The first workshop in each country focused on an introduction to DRF concepts, principles, and instruments and the presentation of preliminary observations on the current state of the enabling environment for DRF in each country by the team of consultants. The second workshop focused on the presentation and discussion of preliminary findings and recommendations of the country diagnostics assessments. Around 30 40 participants were present at each national workshop. An additional workshop was held in Pakistan in April 2018 to discuss government and development partner DRF initiatives in the country and to maximize synergies and complementarities. ADB hosted a regional DRF forum in Manila in September 2018 to share the findings and recommendation of the country diagnostics with a wider audience, facilitating cross-country learning and dialogue and providing an enhanced understanding of opportunities to strengthen the financial management of disaster risk in a larger group of countries. Eighty-seven participants comprising representatives from 13 disaster-prone DMCs, development partners, industry representatives, and ADB staff attended the forum. A session was also organized at the _Understanding Risk Finance Pacific Forum_ in Vanuatu in October 2018 to present and discuss the findings and recommendations of the TA.

The results of the municipal government DRF scoping work in Nepal will be disseminated during country workshops in 2019.

Geographical Location Regional
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation missions in PAK and SRI were conducted in 2016 in coordination with ADB resident missions.
During Project Implementation

Consultation missions were undertaken to PAK, SRI and FIJ in 2017-2018, in coordination with ADB resident missions, to meet government agencies, the private sector and other stakeholders and seek their views and perspectives. Nepal consultation missions were fielded in March, and August and final consultation was held on 1-4 October with 1 day workshop.

Consultation mission to Nepal was undertaken on 29-31 January 2019 for the scoping work to determine options for strengthening the disaster resilience of municipal governments.

Business Opportunities
Consulting Services With the change in scope approved in December 2018, the consulting services required increased to 53.5 person-months of individual international consultant services and 40 person-months of individual national consultant services, comprising (i) 12 person-months for two lead disaster risk financing specialist; (ii) 7.5 person-months for two disaster risk insurance specialists; (iii) 8.5 person-months for two agricultural insurance specialists; (iv) 3 person-months for one public finance specialist; (v) 3 person-months for one DRF specialist; (vi) 9.5 person-months for two insurance and capital markets regulatory specialists; (vii) 16 person-months for four national insurance industry specialists; and (viii) 24 person-months for one national project coordinator.
Responsible ADB Officer Chatterjee, Arup Kumar
Responsible ADB Department SDSC
Responsible ADB Division SDSC-FIN
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance 02 Oct 2015
Fact Finding -
MRM -
Approval 02 Dec 2015
Last Review Mission -
Last PDS Update 27 Mar 2019

TA 9007-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Dec 2015 - 02 Dec 2015 31 Dec 2017 30 Jun 2020 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,300,000.00 0.00 0.00 0.00 0.00 0.00 1,300,000.00 02 Dec 2015 1,091,202.28

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Tenders

Tender Title Type Status Posting Date Deadline
Disaster risk financing specialist Individual - Consulting Closed 11 May 2019 17 May 2019
Insurance industry Expert (NEP) Individual - Consulting Closed 09 Feb 2019 15 Feb 2019
Public financial management specialist Individual - Consulting Closed 09 Feb 2019 22 Feb 2019
Disaster risk financing specialist (FIJ) Individual - Consulting Closed 20 Oct 2017 26 Oct 2017
Disaster risk financing specialist (NEP) Individual - Consulting Closed 20 Oct 2017 16 Nov 2017
Insurance industry specialist (FIJ) Individual - Consulting Closed 07 Oct 2017 13 Oct 2017
Lead insurance and capital markets regulatory specialist Individual - Consulting Closed 20 Jun 2017 10 Jul 2017
Agricultural insurance specialist Individual - Consulting Closed 20 Jun 2017 10 Jul 2017
Disaster risk insurance specialist Individual - Consulting Closed 20 Jun 2017 10 Jul 2017
Insurance industry specialist (NEP) Individual - Consulting Closed 20 Jun 2017 10 Jul 2017
Disaster risk financing specialist Individual - Consulting Closed 20 Jun 2017 10 Jul 2017

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.