Disaster Risk Management and Examples of Early Warning Projects

1. Disaster Risk Management and Examples of Early Warning Projects at the The Inter-American Development Bank

2. Diagnosis: Risk Profile for the Region • Average of 40 important disasters annually in the region. • 4 million people affected • 5,000 deaths • US$3.2 billion in direct losses and an estimated similar or larger amount of indirect losses (vs. IDB annual loan commitments of US$6 billion).

3. The Inter-American Development Bank • IDB is a Bank: • Provides primarily loans and limited technical assistance for Latin America and the Caribbean • Provides what its borrowing members demand • IDB is a Development Bank: • Can finance public goods the private sector might not be willing to fund – including early warning • Has a number of policies in place to ensure development effectiveness of its lending, including a disaster risk management policy. • Hosts specific financial instruments, including the Disaster Prevention Sector Facility (loan) and the Disaster Prevention Fund (grant).

4. Disaster Risk Management at the IDB • The Bank is developing a new DRM policy. This will mandate the Bank to proactively include DRM in the programming process (the process where Bank-country loan framework is discussed). Disaster Risk Managment Policy Action Plan Supports the implemtation of the policy Programming Process Loans Technical Assistance

5. Disaster Prevention Sector Facility • Objective: Reduce long term risk from natural hazards to people, property and productive processes • Loans of up to US$5 million with fast preparation time • Pre-established menu of prevention, mitigation and preparedness activities, including, among others: • Risk identification and forecasting • Early warning systems

6. Disaster Prevention Fund • Objective: Facilitate investments and strategic interventions to improve prevention at local, national and regional levels • Grants of up to US$1 million • Activities to fund include: • Loan and project preparation and design, among other things in early warning, communication technologies and GIS • Strategic studies of risk identification and reduction • Strategic planning and institutional strengthening

7. Early Flood Warning for Haiti • Disaster Prevention Facility Loan of US$5 million for identifying and better preparation to flood risk • Components (in declining order of size): • Flood monitoring and forecasting • Communications for 13 priority watersheds • Community preparedness and immediate response • Institutional strengthening • Public awareness and education • Coordination with projects financed by the World Bank and UNDP

8. Early Warning for Geological Risks in Ecuador • Disaster Prevention Facility loan of US$5 million for early warning systems for areas vulnerable to volcanic activity from Cotopaxi and Tungurahua. • Components: • Risk analysis and monitoring • Alert/Communication system for decision makers • Contingency plans • Institutional strengthening of national planning ministry for disaster risk management.

9. IDB Role in Early Warning Financing • IDB can be an active partner in strengthening early warning systems in its member countries. The Bank has financial instruments and technical capacity to assist its borrowing members in this regard. • According to IDB vision disaster prevention and preparedness should be an integral part of development planning.