The Washington-based lending institution, the World Bank, has approved two loans for the island of Dominica.
They are the Dominica Second Covid-19 Response and Recovery Programmatic Development Policy Credit for US$30 million and the Dominica Disaster Risk Management Development Policy Financing for US$20 million.
Both operations are expected to accelerate the recovery from the impacts of COVID-19, protect the lives and livelihoods of citizens, accelerate policy reforms and increase Dominica’s resilience to future shocks.
“By embarking on a transformative set of actions, including financial sector reforms, introducing a broad-based climate-resilience agenda, and a robust disaster risk management framework, Dominica is moving towards a resilient recovery while preparing for future shocks,” said Lilia Burunciuc, World Bank Country Director for The Caribbean.
Activities under the Dominica Second Covid-19 Response and Recovery Programmatic Development Policy Credit will include the establishment of guidelines for a Vulnerability, Risk, and Resilience Fund to be able to respond to future shocks quickly. The financing will also support a more efficient social protection system, including enhanced protection for women who often are disproportionally affected by disasters.
Another component will include greater transparency for government debt and strengthened procurement processes. The financing would also advance policy reforms that will enhance climate and environmental resilience.
The Dominica Disaster Risk Management Development Policy Financing with a Catastrophe Deferred Drawdown Option will allow the government access to US$20 million in financing to respond to disasters and health-related events.
With Dominica being one of the world’s most vulnerable countries to extreme weather events and climate change, responding quickly and efficiently to climate-related catastrophes is essential.
The policy reforms and plans to be implemented under this operation will help alleviate the social and economic costs of disasters directly, enhance climate resilience in critical sectors, and strengthen Dominica’s emergency response framework.
Dominica benefits from financing from the International Development Association (IDA), which aims to reduce poverty by providing low-interest loans and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions.
CMC/
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