Lao PDR: Improved Access to Disaster Risk Financing

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The operation will comprise a single component to support Lao PDR make a premium payment for pre-arranged risk coverage from the SEADRIF Insurance Company. Sub-component 1.1: Payment of Disaster Risk Insurance PremiumOf the total grant amount of US$3.6 million to the government of Lao PDR, US$3.4 million will be used by thegovernment to pay insurance premium to/through SEADRIF insurance company for an insurance policy and service inreturn. This is a one-time transaction where all the premium will be paid in one tranche. In case of the insurance payout is made, the funds will be eligible to finance repair or rehabilitation of public assets damaged or destroyed by disasters, but not (re)building. The insurance payout can also be used for non-infrastructure expenses as provided in the contingency plan approved by the World Bank.Sub-component 1.2: Support for management of E&S risksThe remaining grant amount of US$200,000 will be utilized to assist the recipient manage the environmental and socialrisks for activities funded from the proceeds of a payout, as and when such a payout is made.