The World Bank has approved a $150 million contingent financing package for Nepal, aimed at addressing the increasing threats posed by natural and climate-induced hazards, as well as health emergencies. This funding was officially approved on October 10, 2023, and is part of the Nepal Disaster Resilience Development Policy Credit with Catastrophe Deferred Drawdown Option (Cat DDO). The initiative seeks to enhance the country's disaster resilience and improve response mechanisms in light of recent catastrophic events, including floods and landslides that have resulted in 246 deaths and economic losses exceeding Rs 17 billion [56c3037d].
David Sislen, the World Bank's regional country director, highlighted the urgent need for immediate financial support to tackle the escalating risks faced by Nepal. The funding will not only assist in immediate disaster response but also strengthen long-term resilience against future climate-related challenges. This initiative is supported by various international organizations, including USAID and the Canadian government, demonstrating a collaborative effort to bolster Nepal's capacity to manage disasters effectively [56c3037d].
This funding comes at a critical time as the country grapples with the impacts of climate change, which have intensified the frequency and severity of natural disasters. The World Bank's support is expected to play a crucial role in enhancing Nepal's preparedness and response strategies, ultimately contributing to the safety and well-being of its citizens [56c3037d].