On October 23, the Government of Nepal and the World Bank signed a $150 million financing agreement aimed at enhancing the country’s disaster resilience. This agreement, known as the Nepal Disaster Resilience Development Policy Credit with Catastrophe Deferred Drawdown Option (Cat DDO), provides contingent financing for natural disasters, climate-induced hazards, and health emergencies.
The financing will support vital policy and regulatory reforms, improving early warning systems, and establishing a robust framework for risk reduction and health preparedness. It aims to strengthen the government’s institutional capacity for effective disaster response while ensuring immediate financial liquidity during crises.
The agreement was signed by Ram Prasad Ghimire, Secretary of the Ministry of Finance, and David Sislen, World Bank Regional Country Director, with notable attendees including Deputy Prime Minister Bishnu Prasad Paudel and World Bank Vice President Martin Raiser.
Ghimire emphasized the importance of the Cat DDO for enhancing crisis preparedness and response capabilities. Sislen added that the instrument allows for quick emergency responses without diverting funds from ongoing development initiatives. The operation is also backed by technical assistance from various international partners, further bolstering Nepal’s disaster management efforts.
