Disaster Risk Management DPL w/Catastrophe Deferred Draw Down Option

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The objective of the Disaster Risk Management Development Policy Loan with Catastrophe Deferred Draw Down Option (CAT DDO) Project for Colombia is to strengthen the Government's program for reducing risks resulting from adverse natural events. The operation supports an institutional effort widely perceived necessary and which the Government is already actively implementing, in part with support from the Bank through two previous lending operations. This CAT DDO will replace an existing contingent line of credit included as a component in the disaster vulnerability reduction adaptable program loan (APL). Funds may be drawn down upon occurrence of a natural disaster resulting in a declaration by decree of a state of national disaster by the president of Colombia, in accordance with Law Decree (Decreto Ley), or as may be amended by the Borrower at the time of disbursement. Since the law was passed in 1989 there have been nine declarations of emergency: five for municipal emergencies, three for departmental emergencies, and one for a national emergency.