Strengthening access to financial mechanisms for disaster risk management in four Andean countries
Subnational authorities in Peru and Ecuador responsible for DRM strengthen their capacities to access central government finance for DRM. The project will provide guidance in developing and accessing funding from existing public, public-private and multilateral DRM funds based on prior country diagnostics. A complementing Community of Practice (Peru, Ecuador, Bolivia and Colombia) fosters exchange of experiences and lessons learned. This is expected to result in enhanced access to available financial resources for DRM for project beneficiaries.
| Country/region | Topic | Period | Budget |
|---|---|---|---|
|
Andean Region |
Climate change and environment Governance
Disaster risk reduction DRR
Public sector policy |
15.11.2023
- 14.11.2027 |
CHF 2’000’000
|
- Peru: the region of Cusco and Lambayeque (Cusco: the regional/local governments of Chiclayo in Espinar, Chumbivilcas, La Convención and Cusco; Lambayeque: the regional/local governments of Chiclayo, Ferreñafe and Lambayeque)
- Ecuador: selected regional/local governments in the three provinces of Pichincha, Guayas and Sucumbíos
- Peru: approx. 2.1 million people
- Ecuador: to be defined once the exact sites in the three provinces have been selected
- Elaboration of comprehensive DRM projects by subnational governments in Peru and Ecuador including accessing funding at the national level
- Diagnostic studies on financial mechanisms per country (starting with Peru and Ecuador followed by Bolivia and Colombia)
- Participation of four Andean countries in a Community of Practice to exchange, share and improve access to financial mechanisms for DRM in the region
- Launch discussions with key authorities at the national level how to improve, simplify and diversify existing financial mechanism and share innovative mechanism from the region and worldwide
- Foreign private sector South/East
- World Food Programme
- WFP will subcontract for specific implementation tasks e.g. with PREDES for Peru; for Ecuador to be defined based on the diagnostic
-
Sector according to the OECD Developement Assistance Commitiee categorisation DISASTER PREVENTION AND PREPAREDNESS
GOVERNMENT AND CIVIL SOCIETY
Sub-Sector according to the OECD Developement Assistance Commitiee categorisation Disaster prevention and preparedness
Public sector policy and administrative management
Aid Type Mandate without fiduciary fund
Project and programme contribution
Project number 7F11221
| Background | In the Andean countries, subnational governments face major challenges in implementing disaster risk management projects due to the complexities inherent to the application process and lack of experience. This hampers their ability to access available DRM funding especially for prevention, risk mitigation, and preparedness while governments tend to allocate their DRM resources mainly to response and recovery activities, resulting in a problematic imbalance between pre- and post-disaster DRM investments and generally low DRM project execution. There is an urgent need to support subnational governments in enhancing their access to financial mechanisms (public, public-private and multilateral funds) and provide guidance in developing sound and effective DRM initiatives while at the same time simplify and diversify national funding mechanisms. |
| Objectives | Enhance subnational government access to financial mechanism related to prevention, mitigation, and preparedness, while discussions stimulate the four Andean countries to improve, simplify and diversify its processes on financial mechanisms related to DRM. |
| Target groups |
Direct beneficiaries: (i) Subnational government entities responsible for DRM in Peru and Ecuador: (ii) Government entities and stakeholders from Peru and Ecuador like PCM, INDECI, MEF, SGR; and government entities and stakeholders from Bolivia and Colombia participating in the Community of Practice. Indirect beneficiaries: The population within the above project system boundaries: |
| Medium-term outcomes |
Outcome 1: Institutional capacities for applying public, public-private and multilateral financial instruments for DRM are strengthened in Peru. Outcome 2: Processes of knowledge transfer on access to and use of public and public-private financial mechanisms for DRM are led by the Andean countries through a regional Community of Practice. Outcome 3: Ecuador incorporates advances and strategies for the application of innovative financial mechanisms in DRM based on key learning processes in the country and the region. |
| Results |
Expected results: Results from previous phases: The Regional DRR & RR Programme in Lima implemented the project SINAGERD (7F-10207.02) in Peru (2020-2023) aiming at strengthening risk governance with the objective of reinforcing the National Disaster Risk Management System (SINAGERD) and integrating DRR into territorial planning. The experience has served as orientation for the development of this new initiative. |
| Directorate/federal office responsible |
SDC |
| Credit area |
Humanitarian aid |
| Project partners |
Contract partner Private sector United Nations Organization (UNO) |
| Coordination with other projects and actors |
Stakeholders: Ministries of Defense, Finance and Social Protection in the four countries (Peru: PCM, INDECI, MEF, MIDIS, MINAGRI; Ecuador: SGR, MEF; Colombia: UNGRD, MHCP; Bolivia: VIDECI, MPD; MEFP). Platforms: Comité Andino Ad Hoc de Prevención de Desastres (CAPRADE), Alianza del Pacifico. Projects: Strengthening the capacities of disaster risk preparedness and response of national institutions (WFP) led by the DRR & RR Programme; SECO projects: Disaster Risk Finance and Insurance (World Bank) and Support to the National Public Finance Management Reform (Basel Institute on Governance). |
| Budget | Current phase Swiss budget CHF 2’000’000 Swiss disbursement to date CHF 873’350 Total project since first phase Swiss budget CHF 0 Budget inclusive project partner CHF 2’000’000 |
| Project phases | Phase 1 15.11.2023 - 14.11.2027 (Current phase) |
