Vanuatu Disaster Risk Management Development Policy Grant with a Catastrophe-Deferred Drawdown Option (CAT-DDO)

closed

The project development objective of the Disaster Risk Management Development Policy Grant with a Catastrophe-Deferred Drawdown Option Project for Vanuatu is to enhance the Recipient's regulatory framework and institutional capacity to: (i) manage and reduce the risks from natural disasters and climate change; and (ii) manage public debt. This stand-alone operation aligns with the national priorities set forth in the Vanuatu climate change adaptation and disaster risk reduction policy and the objectives of the national sustainable development plan, specifically environment goal 3 of a strong and resilient nation in the face of climate change and disaster risks posed by natural hazards. The debt management reforms supported by this operation are a key component of the government’s overall plans to consolidate its public finances and ensure fiscal resilience, including by maintaining sufficient fiscal buffers to respond to future disasters and other external shocks.