According to information on the bank's official website, the funding for the program will be provided through a grant of $53.1 million from the Asian Development Fund (ADF), as well as co-financing of $3.3 million from the Asia-Pacific Climate Fund. The ADF provides grants for the most vulnerable and poorest countries in the region.
The program includes disaster-related financing (CDF), which encompasses budget support in situations of moderate severity and in emergency medical cases, as well as disaster relief bonds (DRB) that will be issued on the international financial market to ensure quick access to liquidity in the event of serious disasters.
“This program is designed to reduce the financial burden on both countries after disasters, including geophysical threats, extraordinary climate events, and health emergencies,” noted ADB Director General for Central and West Asia, Lea Gutierrez.
The program emphasizes the implementation of strategic reforms, enhancement of institutional capacity, and improvement of governance to ensure a coherent, transparent, and effective approach to disaster risk management and its financing.
This initiative has been prepared under ADB's technical assistance for creating a disaster risk transfer mechanism within the Central Asia Regional Economic Cooperation (CAREC). The CAREC program, supported by ADB, represents cooperation among countries and development partners aimed at sustainable development and accelerating economic growth in the region.
