Vanuatu Resilience Development Policy Financing with a Catastrophe Deferred Drawdown Option (WB-P506285)

Countries
  • Vanuatu
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jan 14, 2025
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Vanuatu - Ministry of Finance and Economic Management
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported
Converted using 2025-02-26 exchange rate.
Project Cost (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ WB website

Updated in EWS Feb 26, 2025

Disclosed by Bank Oct 20, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the program development objectives are to 1) promote fiscal resilience and transparency, and 2) strengthen climate and disaster risk management.

The proposed operation is designed to support Vanuatu in addressing the cause and effect of these economic shocks by strengthening fiscal management and climate resilience. Pillar 1 aims to improve fiscal management by improving domestic revenue mobilization, strengthening state-owned enterprise (SOE) governance, and improving cash management and tax transparency. Pillar 2 PAs are supporting the government’s climate adaptation goals through legislation and policies that support disaster risk response, disaster risk reduction financing, and adaptive social protection.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

According to the Appraisal Program Information Document (PID), the overall risk of the Operation is rated as Substantial. However, the selection of prior actions that align with government priorities and the close involvement of development partners helps to reduce technical and stakeholder risks. Political and governance risks are rated as High because of the heightened state of political uncertainty due to three changes of government in the second half of 2023 through a series of no-confidence motions. Changes in government may result in a change in policy priorities and prevent successful implementation of the policy reforms. Additionally, the DPO dialogue through a joint development partner forum is new, beginning only in 2023, and changes in government poses risks to its continuation.

Macroeconomic risk is rated as High due to the country’s narrow economic base and vulnerability to external shocks. A deterioration of macroeconomic conditions, particularly climate-related disasters, may weaken growth and domestic activity and diminish the impact of government reforms, particularly regarding raising domestic revenues and natural hazards may result in a tighter fiscal stance may divert financial and human resources away from policy actions supported by this Operation.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

IDA Grant: US$ 30.00 million


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

World Bank

Vishesh Agarwal
Economist

Lodewijk Smets
Senior Economist

Armando Eduardo Guzman Escobar
Senior Disaster Risk Management Specialist

Borrower/Client/Recipient

Government of Vanuatu

Implementing Agencies

Ministry of Finance and Economic Management
Johnny Koanapo Rasou
Minister
info@parliament.gov.vu

ACCESS TO INFORMATION

To submit an information request for project information, you will have to create an account to access the Access to Information request form. You can learn more about this process at: https://www.worldbank.org/en/access-to-information/request-submission

ACCOUNTABILITY MECHANISM OF THE WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint

How it works

How it works