Maldives First Fiscal Sustainability and Budget Credibility Development Policy Financing Operation

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The development objectives of First Fiscal Sustainability and Budget Credibility Development Policy Financing Operation Project for Maldives are to: (1) improve the policy framework to enhance sustainability of the public finances; and (2) strengthen the policy framework to increase credibility of the budget. This DPF is complemented by a disaster risk management DPF with catastrophe deferred drawdown option (Cat-DDO), a pandemic emergency financing facility (PEF) and an urban development and resilience project, under preparation concurrently. The DPF with Cat-DDO and PEF will support the GoM’s capacity to manage the human, physical and fiscal impact of climate change and natural disasters, including disease outbreaks through the PEF. Improved disaster preparedness will also contribute to improved budget credibility and fiscal sustainability. This project will support enhancing services and strengthening resilience in the Greater Male Region. It includes a contingency emergency response components (CERC), or zero component) that can be triggered by natural and man-made disasters to provide an initial layer of support by rapidly unlocking financing in case of disaster.