Project Information Document (Pid) s19

PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: 92251 (The report # is automatically generated by IDU and should not be changed)

Project Name STRENGTHENING PUBLIC INVESTMENT IN DRR & CCA IN THE EASTERN CARIBBEAN

Region Caribbean Country OECS Countries Sector Urban Development Lending Instrument Investment Project Financing Project ID P145358 Borrower(s) United Nations Development Program Implementing Agency United Nations Development Program Barbados Environmental Screening {}A {}B {X}C {}FI Category Date PID Prepared April 15, 2014 Estimated Date of Appraisal July 4, 2014 Completion Estimated Date of Board N/A Approval Decision Project authorized to proceed to negotiations upon agreement on any pending conditions and/or assessments.

I. Country Context Eastern Caribbean countries suffer repeated losses from natural disasters almost on an annual basis. These countries are particularly prone to hydro-meteorological hazards (flooding, high winds and landslides), which intensify during the wet season from June to November by the passage of hurricanes and tropical storms. Combined with high levels of vulnerability of many of the islands, these hazards have the potential to result in significant loss of lives and impact on livelihoods as well as consequences on human and economic development. This risk is expected to be further exacerbated by global climate change trends that may influence the severity and frequency of hazards such as hurricanes, floods and drought as well as ongoing processes of coastal and beach erosion. Additionally earthquakes and volcanic threats weave a complex multi- hazard environment. On average, at least one major hurricane and multiple tropical storms sweep across the Caribbean each year. From 2001 to 2010 economic losses due to natural hazards across the OECS countries was $870 Million in 2000 Real US$ terms. Damage to Grenada alone from Hurricane Ivan in 2004 was calculated at $775 Million. In both Grenada and the Cayman Islands, losses were close to 200% of the national annual GDP1(Gross Domestic Product).

While countries in the Eastern Caribbean sub-region have made substantial progress in strengthening their capacities in emergency management, for example in early warning, preparedness and response, their ability in assessing the full costs of hazard impacts and the cost- benefit of ex-ante risk reduction strategies is still considerably lower. Several Caribbean countries

1Caribbean Catastrophe Risk Insurance Facility. Strategic Plan 2013-2015. have transferred part of their catastrophic risk through a parametric risk insurance facility – namely the Caribbean Catastrophic Risk Insurance Facility (CCRIF); however, national planning and investment decisions do not necessarily take into account disaster risks. Nevertheless, ensuring that government policy and development strategies, including public investment, take into account disaster risk is not only a key strategy for disaster risk reduction but also for climate change adaptation.

The 2011 Global Platform (GAR) on Disaster Risk Reduction (DRR) also highlighted and recommended to:

 Account for disaster losses in a standardized manner to support multi-hazard, integrated assessments as the basis for development decision-making and open-source and public risk information; and

 Track investments in DRR to provide clear evidence of the costs and benefits of investments through verifiable and accountable data to Governments and the public and as a further means of promoting aid-effectiveness.

The seven countries of the Eastern Caribbean have ratified the Comprehensive Disaster Management (CDM) Strategy2 as well as the global Hyogo Framework for Action (HFA)3. Under the CDM Strategy, a key targeted output identified is that “Hazard information and Disaster Risk Management is integrated into sectorial policies, laws, development planning and operations, and decision-making in tourism, health, agriculture and nutrition, planning and infrastructure”. Similarly under the HFA, the countries are committed to “identify, assess and monitor disaster risks” on a national and local level and to systematically document and disseminate statistical information on disaster occurrence, impacts and losses.

Under the United Nations Development Assistance Framework4 the priority areas include Environment, Energy, Climate Change and Disaster Risk Reduction. Within this context, UNDP has agreed with the countries through a multi-country program and action plan to support the improved integration of DRR into development planning and disaster response and recovery.

In accordance to the overarching strategies and frameworks the countries committed to, and considering the current challenges the islands are facing, the project will support risk identification and assessment as well as mainstreaming of DRR into investment programs and post-disaster recovery. These objectives are also in line with the ACP-EU (Africa, Caribbean, and Pacific Countries - European Union) Natural Disaster Risk Reduction (NDRR) Program that aims at addressing prevention, mitigation and preparedness to natural hazards at regional, sub-regional, national and local levels in ACP countries.

2 CDERA (2006) Comprehensive Disaster Management – Strategy and Programme Framework 2007-2012. URL: http://www.preventionweb.net/files/2537_CDMStrategyandProgrammeFramework20072012.pdf 3 UN-ISDR (2005) Hyogo Framework for Action 2005-2015: Building Resilience of Nations and Communities to Disasters. World Conference on Disaster Reduction. URL: http://www.unisdr.org/2005/wcdr/intergover/official- doc/L-docs/Hyogo-framework-for-action-english.pdf 4UNDP (2011) United Nations Development Assistance Framework (UNDAF) for Barbados and the Organisation of Eastern Caribbean States (OECS) 2012 to 2016 II. Sectoral and Institutional Context At the national level, each country has a National Disaster Organization (NDO) or similar institution which is mandated with DRR and has the lead for coordination following a disaster event. Additionally, ministries of economic development and/or planning have key roles in addressing issues that will manage public investment including related aspect of risks. At the regional level, CDEMA is the main coordinating entity for DRR. In addition, the Organization of Eastern Caribbean States (OECS) Secretariat also has a mandate to their Member States to support DRR within a context of sustainable development as outlined in the St George’s Declaration of Principles for Environmental Sustainability in the OECS. In the scientific context, the University of the West Indies has established a Disaster Risk Reduction Centre to address research and capacity development to manage and mitigate risks in the Caribbean.

Most countries have developed national DRR programs under their respective NDOs; however, very few if any other agencies have specified or defined the DRR budgetary elements or mainstreamed DRR across sectors. In all cases, the narrow characterization of hazards and vulnerability as well as the limited systematic monitoring of the impacts of natural hazards and availability of risk information has prevented the determination of a suitable budget for investment in the varying sectors to effectively reduce disaster risk. Although there are investments that include a risk reduction component such as mitigation through coastal protection, watershed management, road strengthening and other works as well as water resource management and flood mitigation initiatives, they are not based on a strategic decision as to what percentage of risk shall be reduced by means of structural and non-structural interventions, transferred or retained to achieve the most efficient DRR approach.

Due to the limited availability of information on past disaster impacts and disaster risk models describing the overall risk, the foundation of developing a coherent DRR approach is not at hand. In addition, due to limited tracing of DRR related investments, the percentage of GDP allocated to risk reduction, relief and recovery in Barbados and the Organization of Eastern Caribbean States (OECS) is unknown. In terms of the budgets of the NDOs the percentage is variable but seen to represent less that 0.1% of the government’s annual budget in some cases. However, in order to be able to assess the status quo as well as establish and reach objectives in terms of mainstreaming disaster risk management into the core development planning processes and develop strategies that fully incorporate risk reduction into local, national and regional level economic growth strategies, it is required to know the risks, and be able to monitor and evaluate disaster risk reduction investments.

III. Project Development Objectives

The objective of this initiative is to strengthen the governments’ capacity to systematically account for disaster loss, to identify hazards and develop risk assessments, as well as to use this information to strengthen public investment in disaster risk reduction.

The impact of this initiative will ultimately contribute to improved resilience to natural hazards and the impacts of climate change through a better understanding of risk and incorporation of DRR strategies into investment planning. IV. Project Description

The Eastern Caribbean countries addressed under this project undertake only a very limited documentation of hazard impacts and associated costs on a systematic basis. This has impeded the effective understanding and modeling of the spectrum of risks faced by the countries. Mainstreaming of DRR will require countries to understand their level of risk, capture this in economic terms and develop investment strategies to reduce risks. To create a comprehensive overview of the risks the countries are facing, the analysis will involve all productive sectors as well as socio economic elements. The project consists of four components:

Component 1: This initial estimate will be complemented with analytical assessments of catastrophic risk for at least two hazards (earthquake and hurricane). This may relate to already existing assessments such as the information produced for the CCRIF or, as required, to the creation of new hazard information using the CAPRA (Probabilistic Risk Assessment Program) methodology. The World Bank and the United Nations Office for Disaster Risk Reduction (UN- ISDR) will collaborate on the establishment of a standardized methodology for the catastrophic risk profiles. The database containing the resulting information should be handed over and managed by a relevant national institution that has responsibility for disaster risk reduction, climate change adaptation or alternatively the development planning. It is expected that there will be close collaboration with the World Bank project ‘Caribbean Risk Information Programme to support the Integration of DRM Strategies in Critical Sectors’. This will include sharing of information, coordination of methodologies for risk estimation and assessment of catastrophic risk and subsequently in this focus of incorporating DRR into public investment.

Component 2: Following the assessment of catastrophic risk, a review of existing investments in disaster risk reduction will be carried out in collaboration with the Ministries of Finance and other related organisms. This shall form the basis to identify and develop ways such as policies, guidelines or other legal instruments to efficiently incorporate DRR into the country’s national public investment and development planning system, as well as the development of mechanisms to track DRR investments in the future. Throughout the whole process workshops will be carried out to engage the participating ministries and to build ownership of all involved stakeholders.

Component 3: The results of the project will inform the 2015 Global Assessment Reports on DRR, and thereby fill the current risk information gap in the GAR as it relates to Caribbean small island states. The results would also inform a sub-Regional Assessment Report on Disaster Risk Reduction within the same period. V. Financing

(US$m.) Source: Borrower/Recipient: 0 IBRD: 0 IDA: 0 Others: GFDRR-EU-ACP 636,900 Total: 636,900

VI. Implementation

The UNDP Office in Barbados has worked with several national governments and regional institutions in supporting disaster risk reduction at the regional and national levels and also in developing synergies with other regional institutions in providing capacity building support. Therefore, it will undertake the role of implementing agent for the proposed project. The UNDP Strategic Plan (2008-2011, extended to 2013) key result areas include enhanced disaster risk management capabilities and the strengthening of post-disaster governance as a basis and foundation for local development5. Additionally, the UNDP will build on more than 20 years of global experience and expertise in disaster risk reduction and recovery to support project implementation. Moreover, effective project implementation will be supported by routine World Bank missions.

UNDP will assure a close collaboration with other relevant agencies and ongoing projects including:

 Collaboration with the United Nations Office for Disaster Risk Reduction (UN-ISDR) in the implementation of the initiative to ensure consistency with methodologies applied for development of the disaster databases and the loss exceedance curves as well as to contribute to the Global Assessment Report (2015) throughout the entire project life;  Collaboration with the World Bank’s regional ACP-EU project "Caribbean Risk Information Programme to support the Integration of DRM6 Strategies in Critical Sectors" including a project coordination meeting at the start of the initiative as well as conversations and discussions on the progress, next steps and needs to align interventions. Especially with regards to the methodology for the creation of the risk profiles a multitude of technical conversations will ensure the harmonization of the approach used by UNDP and the methodology applied by the World Bank in ongoing projects;  The project will also be closely aligned with the Post Disaster Needs Assessment (PDNA) capacity development initiative which will support better mapping of total costs caused by disasters. Since the targeted stakeholder group is in large parts the

5United Nations.UNDP Strategic Plan (2008-2013): Accelerating global progress on human development. 6Disaster Risk Management same, even joint events are envisioned. This initiative will also be implemented by UNDP Barbados and the OECS.

In addition to the World Bank policy requirements, UNDP will apply project assurance and Monitoring and Evaluation (M&E) processes as specified under its corporate policy structure including: a. A project board comprising representatives from beneficiaries, the donor, key stakeholders with related mandates and senior management from UNDP; and b. A project manager with the required capacity to facilitate effective implementation.

More specifically, the proposed project would be monitored through the followingprogramming policies and procedures outlined in the UNDP User Guide:

Within the annual cycle: a. On a quarterly basis, a quality assessment shall record progress towards the completion of key results, based on defined quality criteria and methods; b. An Issue Log shall be activated in Atlas (UNDP financial and administrative management system) and updated by the Project Manager to facilitate tracking and resolution of potential problems or requests for change; c. Based on the initial risk analysis, a risk log shall be activated in Atlas and regularly updated by reviewing the external environment that may affect the project implementation; d. Based on the above information recorded in Atlas, a Project Progress Reports (PPR) shall be submitted by the Project Manager to the Project Board through Project Assurance, using the standard report format available in the Executive Snapshot; e. A project Lesson-learned log shall be activated and regularly updated to ensure on-going learning and adaptation within the organization, and to facilitate the preparation of the Lessons-learned Report at the end of the project; and f. A Monitoring Schedule Plan shall be activated in Atlas and updated to track key management actions/events.

Annually:  Annual Review Report. An Annual Review Report shall be prepared by the Project Manager and shared with the Project Board and the Outcome Board. As minimum requirement, the Annual Review Report shall consist of the Atlas standard format for the Quarterly Progress Report (QPR) covering the whole year with updated information for each above element of the QPR as well as a summary of results achieved against pre- defined annual targets at the output level; and  Annual Project Review. Based on the above report, an annual project review shall be conducted during the fourth quarter of the year or soon after, to assess the performance of the project and appraise the Annual Work Plan (AWP) for the following year. In the last year, this review will be a final assessment. This review is driven by the Project Board and may involve other stakeholders as required. It shall focus on the extent to which progress is being made towards outputs, and that these remain aligned to appropriate outcomes.

At the conclusion of the project an end of project evaluation would be conducted. VII. Safeguard Policies (including public consultation)

Safeguard Policies Triggered by the Project Yes No

Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Involuntary Resettlement (OP/BP 4.12) X Indigenous Peoples (OP/BP 4.10) X Forests (OP/BP 4.36) X Safety of Dams (OP/BP 4.37) X Projects in Disputed Areas (OP/BP 7.60)* X Projects on International Waterways (OP/BP 7.50) X

The safeguard policies are not triggered because the project activities will comprise studies and capacity building exercises; no civil works or policy actions will be carried out which could affect environmental resources or pose any significant environmental or social risks, and does not require further assessment. Accordingly the project is assigned an Environmental Category of C.

VIII. Contact point at World Bank and Borrower

World Bank Contact: Fernando Ramirez Cortes Title: Senior Disaster Risk Management Specialist Tel: (202) 473-8920 Email: [email protected]

Borrower/Client/Recipient Contact:Mr. Ian King Title:Programme Manager, Disaster Risk Reduction Tel: (246) 467-6032 Email: [email protected]

Implementing Agencies Contact: Mr. Ian King Title: Programme Manager, Disaster Risk Reduction Tel: (246) 467-6032 Email: [email protected]

IX. For more information contact:

**By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-4500 Fax: (202) 522-1500 Web: http://www.worldbank.org/infoshop