Tuvalu First Resilience Development Policy Operation with a Catastrophe-Deferred Drawdown Option

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Tuvalu is one of the smallest, most remote, and climate change-vulnerable countries in the world, and categorized as a fragile state. The operation aims to support the government of Tuvalu (GoT) in its efforts to manage some of the key risks threatening the country’s sustainable growth and development. Tuvalu’s limited economic opportunity, coupled with vulnerability to shocks, has made achieving and sustaining gains in poverty reduction and inclusive growth difficult. The operation aligns with the national priorities set forth in Tuvalu’s national strategy for sustainable development 2016-2020 (Te Kakeega III or TKIII). The development objective of the operation is to support the recipient’s effort to: (i) strengthen public financial management; (ii) enhance infrastructure management, and disaster and climate-resilience; and (iii) improve social protection and inclusion in education. The operation supports policy reforms under three pillars, namely to: (i) strengthen public financial management; (ii) enhance infrastructure management, and disaster- and climate-resilience; and (iii) improve social protection and inclusion in education. The design of this operation reflects experience from previous CAT-DDOs implemented since the instrument was introduced in 2008. The key features of the CAT-DDO are the drawdown period and renewal.