World Bank Supports Vanuatu Recovery

World Bank provides US$30M to support Vanuatu’s earthquake recovery, fiscal stability, and disaster resilience.

The World Bank has committed an additional US$30 million to assist Vanuatu in recovering from the recent 7.3 magnitude earthquake. Of this, US$20 million will support immediate reconstruction and response efforts, while US$10 million will be held in contingent financing to address future disasters or health emergencies. This funding also supports governance reforms, fiscal stability, and long-term resilience planning.

“We are grateful for the World Bank’s swift response and ongoing partnership,” said Vanuatu’s Caretaker Minister for Finance and Economic Management, Hon. Johnny Koanapo. “This assistance will provide critical resources to recover from the earthquake and strengthen our capacity to face future challenges.”

The new funding builds on US$12 million in emergency aid disbursed shortly after the December 17, 2024 earthquake that severely impacted Port Vila, the capital. The rapid disbursement allowed Vanuatu to address immediate recovery needs.

The World Bank also completed a Global Rapid Post-Disaster Damage Estimation (GRADE) to assess the earthquake’s economic impact. The report estimates direct damage to physical assets at US$197 million, approximately 17 percent of Vanuatu’s 2023 GDP, with the potential to push more than 2,150 people into poverty.

“These grants, alongside our initial emergency financing and rapid damage assessments, will help strengthen Vanuatu’s fiscal stability and resilience against future shocks,” said Annette Leith, World Bank Resident Representative in Vanuatu. “We will continue working with the government to ensure Vanuatu is well-prepared for future challenges.”

The funding, provided by the International Development Association (IDA), the World Bank’s fund for the most vulnerable countries, will support reforms to improve governance and disaster preparedness. It also includes strengthening Vanuatu’s Disaster Risk Management Act, expanding financing options for resilience, and enhancing oversight during emergencies.

Vanuatu, one of the world’s smallest and most climate-vulnerable nations, faces ongoing challenges from frequent natural disasters. This additional support aims to improve fiscal and disaster management systems to help the country manage future risks effectively.

Source: World Bank

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}