ADB to provide disaster financing for the first time

The Asian Development Bank will, for the first time, provide disaster risk financing to its member countries.

The ADB made the announcement on Monday, introducing a new funding program to help countries better prepare for and respond to disasters.

The program, called the Pre-Arranged Resources for Enhancing Preparedness and Resilience [PREPARE], is supported by the Government of Japan as its first funding partner.

Under this program, a Pacific Trust Fund has been set up with an initial contribution of $2.9 million from Japan.

ADB Director General for the Pacific, Emma Veve, said the program will help Pacific countries prepare ahead of disasters and improve how they manage risks.

She said the funding will support quick and reliable responses when disasters strike, and help countries recover faster.

The program will also support the Pacific Catastrophe Risk Insurance Company, which provides disaster insurance for Pacific countries.

This support will help ensure faster insurance payouts to affected countries during disasters.

ADB said its disaster financing support for Pacific countries will include loans, grants and technical assistance to strengthen preparedness and response.

Meanwhile, ADB and Japan have also announced a new joint plan to help countries and businesses deal with rising energy costs, while moving towards more reliable and sustainable energy systems.

“With energy markets under strain, countries need support that addresses immediate pressures while laying the groundwork for long-term resilience,” ADB President Masato Kanda said.

“We are grateful for Japan’s partnership in advancing this initiative, which will help businesses in our region stay afloat today while supporting the transition to stronger and more sustainable energy systems.”

The agreement, according to the Finance Minister of Japan, Satsuki Katayama, “this initiative aims to support SMEs affected by the conflict, while promoting the transformation of energy structures in developing member countries. Japan will continue to work closely with ADB to advance crisis response efforts.”

NBC Business reporter Charles Yapumi, who is attending the 59th Annual Meeting of the ADB, reports that further details on the implementation and specific operations under Action for Creating Energy Security for Long-term Resilience or ACCEL will be announced in due course.