Barbados Disaster Risk Management Cat DDO

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The country has experienced high economic volatility and stalled development since 1994. In May 2024, the World Bank approved the GoB's request to access IBRD financing considering (i) the country’s vulnerabilities, which are exacerbated by the increasing frequency of climate-related disasters and global shocks; (ii) its lack of access to external capital markets on reasonable terms; and (iii) the need to strengthen key institutions for economic and social development. Barbados received exceptional IBRD financing four times after graduating from IBRD: (i) two loans for multi-country HIV-AIDS investment projects in the financial year (FY)01 and fy09; (ii) A US100 million dollar development policy loan (DPL) in FY21 for COVID-19 response and recovery; (iii) a US100 million dollars green and resilient recovery DPL in FY23 to scale up resilient recovery with a focus on climate adaptation and mitigation to promote low carbon economic development. The World Bank has also provided analytical and advisory services across various sectors since Barbados’s graduation. In response to Hurricane Beryl, in FY25, Barbados’ first investment project financing loan for the Beryl Emergency Response and Recovery Project (BERRP, P507190) for US54 million dollars was approved to support the recovery of the fisheries sector and strengthen coastal protection, emergency management, and infrastructure resilience. This US30 million dollars Disaster Risk Management Development Policy Loan with Catastrophe Deferred Drawdown Option (Cat DDO) strengthens Barbados' fiscal and institutional resilience to disasters and climate change through prior policy reforms and complements the BERRP. Pillar 1: enhancing financial resilience and social protection for climate disasters, focuses on improving financial preparedness and post-disaster expenditure management through the DRF Policy Prior Action (PA1) and amendments to the Catastrophe Fund Act (PA2). Pillar 2: strengthening physical planning and livelihood resilience, strengthens resilience in key sectors, particularly the Blue Economy, through reforms supporting sustainable fisheries management (Sustainable Fisheries Management and Development Bill, PA4), coastal resource and infrastructure protection (Integrated Coastal Zone Management Bill, PA3), and enhanced flood mitigation through improved drainage and nature-based solutions (Stormwater Management Bill, PA5). These reforms promote sustainable development, align with global DRR and climate adaptation frameworks, and support Barbados' comprehensive DRM and climate resilience program within the context of the World Bank's broader engagement, as described in Barbados’ Country Engagement Note (CEN).