Regional : Pacific Disaster Resilience Program, Phase 3

Public sector management / Public expenditure and fiscal management

The program provides Pacific DMCs with a source of financing that can be rapidly disbursed following disaster events. The program will complement risk financing instruments currently in use by the participating governments, including annual contingency budgets, national disaster funds, parametric disaster insurance, and traditional indemnity insurance. Eligibility to withdraw loan and grant proceeds is based on achieving prior resilience-related policy actions, but disbursements will be triggered when a state of disaster or emergency is declared. The DRM policy actions for each participating DMC will reduce the underlying disaster risk and enhance preparedness. Each government has also agreed on an ongoing post-program partnership framework (PPPF) to strengthen DRM performance that is based on a gap and needs analysis in each country. In addition to disasters caused by natural hazards, the scope of phase 3 is expanded to cover health-related emergencies in the policy matrixes. The DMCs face similar challenges and will benefit greatly from a regional approach in which good practices are shared. The program will support coordination and cooperation both between Pacific DMCs and with development partners on risk financing arrangements and policy reform discussions. The first phase of the regional program includes attached TA, and this has been expanded to include the new countries under phase 3. The TA project has started country-level support to strengthen the policy environment and institutional arrangements for DRM by strengthening post-disaster financial management capacity, started work on disaster risk information in some countries, and initiated multi-hazard disaster risk assessments. Gender considerations are mainstreamed in the country-level support under the TA.

12.The program is in line with ADB's Strategy 2030, in particular its operational priority 3 on tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability, which supports strengthening DMCs' financial preparedness for disaster response through policy-based contingent financing. The program aligns with ADB's operational plan for health by strengthening institutions for improved health governance, and enabling health financing to tackle public health threats and pandemic preparedness; and with the Pacific Approach, which serves as ADB's country partnership strategy for the 11 smaller Pacific DMCs, including the 10 countries in this program. The Pacific Approach focuses on managing risks as a key strategic area, and highlights the need to (i) expand work on climate change and DRM; (ii) introduce innovative solutions to strengthen disaster preparedness, address vulnerability, and build resilience; (iii) pursue a more programmatic and regional approach to financing climate change and DRM initiatives; and (iv) improve health outcomes in response to the growing threat of infectious and communicable diseases. The program is also consistent with the Framework for Resilient Development in the Pacific 20172030 and respective national plans.

Resilience to climate change and disasters, as well as disaster preparedness, response, and recovery strengthened

Country readiness and response operations for COVID-19 scaled up for containment and mitigation

Resilience of institutions and communities strengthened

Policy and institutional arrangements for risk management strengthened

Risk-informed investment planning processes and tools improved

Risk financing expanded

FSM, KIR, RMI, SAM, SOL, TON and VAN have been fully disbursed.

KIR, SOL, TON and VAN have been financially closed in May 2022.

FSM, SAM and RMI will be financially closed in September 2022.