Tonga Second Fiscal, Disaster, and Climate Resilience Development Policy Operation

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The Second Fiscal, Disaster, and Climate Resilience Development Policy Operation Program aims to support the Kingdom of Tonga in strengthening fiscal and debt sustainability and enhancing resilience to climate change and disasters. This operation is the second in a series of two and is designed around two Program Development Objectives (PDO) and Pillars. Pillar 1 focuses on bolstering domestic revenue mobilization, improving the effectiveness of public debt management, and enhancing energy efficiency. These efforts strengthen fiscal and debt sustainability, with energy measures contributing through enhanced public spending efficiency. Pillar 2 supports the government’s capacity to prepare for and respond to climate change and disasters. It strengthens community resilience by enhancing the transmission of disaster warnings that relevant stakeholders can understand and act upon. The DPO is proposed as an International Development Association (IDA) Grant for 12 million dollars. The operation aims to strengthen fiscal sustainability and enhance resilience to climate change and disasters. Pillar 1 focuses on reforming tax expenditures (PA1), enhancing public debt management and increasing debt transparency (PA2), and promoting energy efficiency through the adoption of Minimum Energy Performance Standards and Labelling (MEPSL) (PA3). Pillar 2 strengthens Tonga’s ability to prepare for and respond to climate change and disasters by: a) supporting the transmission of disaster warnings via the national cell broadcasting system through the Communications Amendment Bill (PA4), and b) establishing a policy framework for multi-hazard early warnings (PA5). These initiatives ensure early warning communications reach vulnerable communities, including women and children in remote areas.