Regional: Strengthening Disaster Resilience of Small and Medium Enterprises in Southeast Asia

Sovereign Project | 48436-001

The R-S-CDTA will enhance the capacity of selected Southeast Asian developing member countries (DMCs) of the Asian Development Bank (ADB) to support small and medium enterprises (SMEs) in strengthening their disaster resilience.

Project Details

  • Project Officer
    David, Mary Jane V.
    Sustainable Development and Climate Change Department
    Request for information
  • Country/Economy
    Regional
  • Modality
    • Technical Assistance
  • Sector
    • Industry and trade
Project Name Strengthening Disaster Resilience of Small and Medium Enterprises in Southeast Asia
Project Number 48436-001
Country / Economy Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8867-REG: Strengthening Disaster Resilience of Small and Medium Enterprises in Southeast Asia
Integrated Disaster Risk Management Fund US$ 225,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Industry and trade / Small and medium enterprise development

Gender Equity and Mainstreaming Some gender elements
Description

The R-S-CDTA will enhance the capacity of selected Southeast Asian developing member countries (DMCs) of the Asian Development Bank (ADB) to support small and medium enterprises (SMEs) in strengthening their disaster resilience.

In April 2014, ADB approved an Operational Plan (Operational Plan) for Integrated Disaster Risk Management (IDRM), 2014-2020, which is based on a vision of disaster resilience, and highlights three key requirements to achieve this vision (i) the integration of disaster risk reduction into development; (ii) actions to address the intersection between disaster risk management (DRM) and climate change adaptation (CCA); and (iii) initiatives to ensure that there are adequate financing arrangements in place to reduce risk and to manage and transfer residual risk. In February 2013, ADB established the Integrated Disaster Risk Management Fund (Fund) with financing from the Government of Canada. The Fund supports the development of innovative regional solutions for DRM in Southeast Asian DMCs and is in line with the IDRM Operational Plan's cross-cutting action for stakeholder engagement. The priorities of the fund include, among others, (i) support to private sector stakeholders in strengthening disaster resilience; (ii) introduction of new regional approaches for increasing investments in DRM; and (iii) support to regional cooperation on DRM.

The proposed R-S-CDTA, to be financed by the Fund, will support specific outputs of the Asian Disaster Preparedness Center's (ADPC) regional project on _Strengthening Disaster Resilience of Small and Medium Enterprises._ There is a growing concern in Asia and the Pacific regarding the impact of disasters on SMEs and the macroeconomic consequences, both in terms of loss of productive capacity and ability to recover. This innovative regional initiative will help raise awareness of the need for strengthened resilience of SMEs in the participating DMCs, support DMC agencies in identifying DRM needs, strengthening capacity and developing longer-term actions for implementation, and help meet the priority objectives of the Fund.

Project Rationale and Linkage to Country/Regional Strategy

Natural hazards continue to cause significant socio-economic losses in Asia and the Pacific and the private sector often faces a significant brunt of their impact. Ninety percent of the damage and losses incurred as a consequence of the 2011 floods in Thailand was borne by the private sector, particularly the manufacturing sector. So too, more than 90% of damage and losses in the Philippines from Typhoon Yolanda in November 2013 was felt by the private sector, including manufacturers, service providers, cottage industries, and informal businesses.

The impact of disasters on private businesses includes destruction of property and equipment, damage to stocks, loss of revenue due to business interruption, increases in operational cost, and the occurrence of other unexpected expenses. Disasters can affect the long-term economic sustainability of a business, potentially resulting in loss in market share due to the transfer of clients to competitors, the movement of skilled workers, and severed relationships with suppliers and retailers.

SMEs are the largest group of businesses in the Asia and the Pacific region. However, capacities within SMEs to strengthen disaster resilience remains weak, including their capacity to (i) assess disaster risk (starting from the selection of plant location, identifying critical links in the supply chain, mapping relationships within support organizations, etc.); (ii) take actions to reduce the risk faced by employees, infrastructure, stock and supply chains; and (iii) manage the residual risk by implementing business continuity plans (BCPs). BCPs ensure that businesses are protected in the event of a disaster, have the capacity to recover to an operational state within a reasonable period of time, and have systems in place to manage the financial risk.

SMEs can play a pivotal role in strengthening a country's disaster resilience by enhancing their understanding of disaster risk and incorporating disaster risk considerations into investment-related decisions.

Impact Strengthened disaster resilience of small and medium enterprises (SMEs) in selected Southeast Asian developing member countries (DMCs) of the Asian Development Bank (ADB)
Project Outcome
Description of Outcome Enhanced capacity of selected DMCs to support SMEs strengthen disaster resilience
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Output 1: Actions identified to strengthen resilience of SMEs

Output 2: Enhanced enabling environment for strengthening disaster resilience of SMEs

Output 3: Regional knowledge sharing

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Regional
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services ADB will be the executing agency for the R-S-CDTA. The Climate Change Coordination and Disaster Risk Management Unit (RSDD-CD) in the Regional and Sustainable Development Department (RSDD) will have the overall responsibility for the R-S-CDTA. The R-S-CDTA will be implemented by ADPC as part of its regional project _Strengthening Disaster Resilience of Small and Medium Enterprises._ Funding from ADB will be utilized for engaging 2 person-months of international consultants and 18 person-months of national consultants. All consultants will be engaged by ADB through CMS on an individual basis or through a firm, in accordance with ADB's Guidelines on the Use of Consultants (March 2013, as amended from time to time). All consulting services under the R-S-CDTA will be engaged on output-based (lump sum) contracts to reduce administrative burden and improve economy, efficiency and value for money aspect under the R-S-CDTA. The TA will be implemented from December 2014 to May 2016.
Responsible ADB Officer David, Mary Jane V.
Responsible ADB Department Sustainable Development and Climate Change Department
Responsible ADB Division SDCD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 22 Dec 2014
Last Review Mission -
Last PDS Update 22 Dec 2014

TA 8867-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Dec 2014 - 22 Dec 2014 31 May 2016 30 Sep 2016 29 Nov 2016
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 225,000.00 0.00 0.00 0.00 0.00 225,000.00 17 Jun 2022 199,167.83

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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