Regional Emergency Preparedness and Access to Inclusive Recovery Phase 2

active

Prospective

The REPAIR Program aims to strengthen the financial and operational preparedness of participating countries to respond quickly to climate and other shocks. It sets up a Regional Climate Risk Fund to provide countries with access to different financial instruments to respond to shocks of various frequency and severity. And it provides technical assistance to participating countries to ensure that the funds from the financial instruments flow quickly and transparently to respond to disasters through country delivery channels. It is managed by one regional implementing entity African Risk Capacity Limited (ARC Ltd). Comoros, Madagascar and Mozambique are in the Program in Phase 1. This operation is for Phase 2 countries: Angola, Burundi, Malawi, Seychelles and Zambia. The African Risk Capacity (ARC) Group is comprised of ARC Agency, a Specialised Agency of the African Union founded in 2012; and ARC Insurance Company Limited (ARC Ltd), a hybrid mutual insurer and the commercial affiliate of the Group founded in 2014. ARC Agency was established to help African governments improve their capacities to better plan, prepare, and respond to natural disasters triggered by extreme weather events, as well as outbreaks and epidemics. ARC Ltd offers complementary risk pooling and risk transfer services. The RCRF will be managed by ARC Ltd, which will ensure strong governance, and build the capacity of Ministries of Finance on managing their contingent liabilities related to climate disasters. Under Component 1, the MPA will establish a Regional Climate Risk Fund (RCRF) to provide affordable, pre-arranged financing for post-disaster responses to participating countries ahead of climate and other shocks. Activities under this component will be oriented to setting up and capitalizing the RCRF in the different financial layers, with ARC Limited as its regional manager . This component will be funded by IDA/IBRD and make up the largest portion of World Bank funding for the project. Under Component 2: Technical assistance will support the operationalization of the RCRF and the operational preparedness of country systems to facilitate swift flows of funds upon a shock. This includes start-up and operating cost of the RCRF including staffing; preparation and testing of operational process and procedures to facilitate the fund flows between MoFs, country systems and end beneficiaries; consultancies to help MoFs decide the allocation between the instruments based on their risk appetite, and improve the management of disaster-related contingent liabilities; and capacity building of country officials on DRF, of country systems on contingency planning and of women and WSMEs on financial literacy.

World Bank Group

Project

Commercial, Government