Contingent Loan for Natural Disaster Emergencies (IADB-DR-X1011)

Countries
  • Dominican Republic
Where the impacts of the investment may be experienced.
Financial Institutions
  • Inter-American Development Bank (IADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 2, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Dominican Republic
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 300.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 300.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IADB website

Updated in EWS Jun 25, 2017

Disclosed by Bank May 23, 2016


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Project Description
This operation will provide contingent financing to the Dominican Republic to cover extraordinary public expenditures during emergencies caused by severe or catastrophic natural disasters. The objective of the operation is to help mitigate the impact that a severe or catastrophic disaster could have on the country's public finances, by increasing the availability, stability, and efficiency of contingent financing to deal with emergencies caused by events of this type.
Investment Description
  • Inter-American Development Bank (IADB)
The proposed operation will consist of the reformulation of loan DR-X1003 in order to increase the total amount of coverage to US$300 million. As with the original loan DR-X1003 approved in 2009, this operation will be structured through a Bank investment loan. All disbursements made will be charged to the Bank’s Ordinary Capital (OC) resources. The funds may either come from the regular lending program, available undisbursed balances of the investment loans already approved and identified in the Automatic Reallocation List, or a combination of these two options. The proposed project includes a single component for US$300 million, which consists of providing quickly accessible liquid resources to structure stable and efficient ex ante financial coverage to defray any extraordinary expenses that could arise in emergencies caused by severe or catastrophic natural disasters in a timely manner. Given the contingent nature of the operation, loan disbursements will only be made upon verification of the occurrence of an eligible event during the period when the loan proceeds are available.
Contact Information
ACCOUNTABILITY MECHANISM OF IADB The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).