Disaster Risk Management DPL-CAT DDO

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The development objective of Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (CAT DDO) Project is to strengthen Serbia’s institutional and legal framework to effectively manage the physical and fiscal impact of natural hazards. This objective will be achieved by supporting policy reforms under three operational pillars: (i) Strengthening the Borrower’s legal and institutional framework for post‐disaster reconstruction and disaster and climate risk management; (ii) Strengthening the Borrower’s technical capacity for planning and implementing disaster and climate risk management activities; (iii) Reducing the fiscal impact and strengthening the Borrower’s financial capacity to respond to the adverse impact of natural hazards, particularly those exacerbated by climate change. This operation is a key component in the efforts of the government to shift to a more comprehensive cross‐sectoral approach for Disaster Risk Management (DRM). The World Bank has been supporting the development of Serbia’s catastrophe insurance market through the South East Europe and Caucasus Catastrophe Risk Insurance Facility (SEEC CRIF) since 2011. The CAT‐DDO will provide the Government with a fiscal buffer to reduce the impact of future disasters on its fiscal balance as well as critical bridge financing for immediate response.