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Disaster Management
Paragraphs Related to the Theme Paragraphs VII Summit

Date:  4/28/2014 
Implementation of IDB Disaster Risk Management Policy (OP-704)
The IDB Disaster Risk Management Policy (OP-704) was approved by the Board in 2007. The policy applies to the IDB’s activities in public, private and to the Multilateral Investment Fund (MIF). In its directive A-1 (programming) states “The Bank will seek to include the discussion on proactive disaster risk management in the dialogue agenda with borrowing member countries” and additionally “The Bank will identify countries according to their level of exposure to natural hazards based on existing indicators and Bank experience”. Under these requirements, the IDB has developed the two technical inputs: (1)Indicators of Disaster Risk and Risk Management, and (2) Country Disaster Risk Profiles, in order to assess the borrowing member countries’ national risk and risk management performance. As a result of these technical inputs, together with the sector dialogues with the national authorities, some member countries have requested from the Bank loan facilities including: policy based loan; investment loan; and contingent loan facility for disaster emergency. These five instruments (two technical inputs and three loan facilities), including recent activities underway (2013-2014) respond to the disaster risk reduction and management theme of the VI Summit thematic area. Details are explained in the next section of this document.

There are two technical inputs and three loan facilities. Technical inputs: (i) Indicators of Disaster Risk and Risk Management, which have been applied to 22 countries* and are currently being applied in 4 additional countries**. These indicators, originally developed by the IDB in 2003-2004, have become a regional reference to evaluate risk and risk management, and are recurrently used by OECD, IPCC, the World Bank and other international agencies. With the current application in 4 additional countries the Bank will complete a database of its 26 borrowing countries. Additionally, the IDB has developed in 2013 a new Index of Governance and Public Policies for DRM, in order to assess the existence of legal, institutional and budgetary conditions that are considered fundamental for an effective implementation of DRM in each country. The indicator is being applied for the first time in 12 countries*** and it will be presented in UN-ISDR Regional Platform meeting in Guayaquil in May 2014. * Argentina, Belize, Bolivia, the Bahamas, Barbados, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Jamaica, México, Nicaragua, Panama, Paraguay, Peru, Trinidad and Tobago and Uruguay. ** Brazil, Guyana, Surinam and Venezuela. (ii) Country Disaster Risk Profiles have been developed in 7 countries (Belize, Bolivia, El Salvador, Guatemala, Honduras, Jamaica and Peru) in order to assess the countries’ disaster risk (based on probabilistic risk calculations). In 2014 the IDB has started to conduct the same study in four additional countries: Argentina, Chile, Paraguay and Venezuela. Loan facilities: (iii) Policy Based Loans, contributing to the countries’ policy reforms on disaster risk management, have been approved in Panama (two loans since 2010) and Peru (two loans since 2010 and a third expected in July 2014). The experience of Peru is observed as a successful example of policy reform that should be disseminated in the UNISDR’s Regional Disaster Risk Reduction Platform to be held in Guayaquil, Ecuador in May 2014. (iv) Investment loans, support implementing the countries’ risk reduction measures, have been approved in Honduras (2009), Nicaragua (2010) and Barbados (2010). These programs include prevention and mitigation measures targetting the most vulnerable local areas, and institutional strengthening activities especially for national and local governments. Contingent Loan Facility: (v) To support the country’s financial protection by increasing the availability, stability and efficiency of contingent financing to deal with emergencies caused by catastrophic events, Contingent Loan Facilities have been approved for a total amount of US$ 986 million in 7 countries including Dominican Republic (2009), Panama (2010), Ecuador (2010), Honduras (2011), Costa Rica (2012), Nicaragua (2013) and Peru (2013). In order to disburse the eligible amount, countries must have Integrated National Disaster Risk Management Program in place and implemented in a satisfactory manner.,1441.html

In 2013-2014: policy reform loans have benefited two countries (Peru and Panama); contingency loans benefited two countries (Peru and Nicaragua); investment loans benefited three countries (Honduras, Nicaragua and Barbados); and technical studies benefited 18 countries (see above sections for details).

Partners and financing:
Since 2007 the Bank has approved around US$1,500 million of loans on disaster risk management, including policy based loans, contingent loan for disaster emergencies, and investment programs. The indicators and disaster risk profiles have been funded through grants supported by the Multidonor Disaster Prevention Fund capitalized with $14.9 million in contributions from Japan, Spain, Korea, and Canada.
Paragraphs: 3 Paragraphs VII Summit: -

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