Washington DC, December 17, 2021 – The World Bank Board of Directors today approved a US $ 300 million loan to Colombia to strengthen its resilience to natural hazards, climate change and health emergencies.
The Third Disaster Risk Management Development Policy Loan with Disaster Deferred Drawdown Option (Cat DDO III) is a conditional line of credit that provides immediate liquidity in the event of a high disaster or epidemic. impact.
“This third loan goes hand in hand with all our efforts to ensure that the country can react in a timely manner to catastrophic events. It provides significant financial support for disaster risk management policies in Colombia ”, noted José Manuel Restrepo Abondano, Minister of Finance and Public Credit of Colombia.
Colombia first received a Cat DDO loan in 2008 in the amount of US $ 150 million, which was disbursed in 2011 during the La Niña 2010-11 phenomenon. The second Cat DDO, worth US $ 250 million, was approved in 2012 and disbursed in 2020 at the start of the COVID-19 pandemic.
The Cat DDO III will support government efforts to strengthen policies, strategies and plans at the sectoral and subnational level to generate risk knowledge and reduce the risks of extreme climate events, the likelihood of which has increased due to change. climate, as well as other disasters and health emergencies. It will focus on reducing fiscal vulnerability to these events, strengthening the capacity to adapt to climate change and increasing the resilience of the health, housing and transport sectors.
The Cat DDO loan would be activated and funds disbursed following a presidential declaration of a national state of emergency in response to a disaster affecting all or part of the country, in accordance with national law.
“Colombia is a regional leader in disaster risk management; nevertheless, it faces challenges in responding to disaster, climate change and public health risks, which primarily affect the most vulnerable ” noted Mark R. Thomas, World Bank Director for Colombia, Mexico and Venezuela. “The Cat DDO III supports actions that should have direct and indirect positive effects on poverty in the short, medium and long term through a more streamlined and resilient institutional framework. “
The Ministry of Finance and Public Credit and the National Planning Directorate will be responsible for coordinating project activities related to the implementation of Cat DDO III.
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