Belize Secures US$20M World Bank Credit for Climate and Disaster Readiness – Love FM Belize News & Music Power

Earlier today, the World Bank Group’s Board of Executive Directors approved a US$20 million Development Policy Credit with a Catastrophe Deferred Drawdown Option (Cat-DDO) for Belize. This funding aims to provide emergency financing in the event of natural disasters and support reforms to enhance the country’s climate and disaster resilience.  Belize is highly vulnerable to climate and disaster risks, including hurricanes, floods, and coastal erosion. It ranks third among small island developing states for disaster risk and fifth for climate change risk. Nearly 60 percent of the population lives near the coast, and over a third reside in low-lying areas.  In recent years, Belize has experienced significant climate shocks, such as Hurricane Nana in 2020, Hurricane Lisa in 2022, and a prolonged drought in 2019. These events have led to substantial economic losses, with average annual losses estimated at US27million.  To address these risks, the Government of Belize is implementing a reform program supported by the Cat-DDO. This program focuses on two main areas, specifically, improving disaster preparedness and climate resilience and strengthening financial protection and response to shocks.  These reforms enable Belize to access the US$20 million in immediate, flexible financing. These funds can be quickly disbursed during a natural disaster or health emergency, providing necessary liquidity without disrupting long-term development plans.  According to Lilia Burunciuc, World Bank Director for the Caribbean, this project provides Belize with tools for swift emergency response while maintaining development goals. Belize joins other Caribbean nations, including Barbados, Saint Vincent and the Grenadines, Grenada, Dominica, and Saint Lucia, in using Cat-DDOs for financial and institutional capacity building against disaster risk.  The Cat-DDO is valid for three years and can be renewed once for an additional three years. It is financed through the International Development Association (IDA), which supports low-income countries and small state economies.

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