Belize - Development Policy Credit with Catastrophe Deferred Drawdown Option

Overview & Synopsis

The development objective of Development Policy Credit with Catastrophe Deferred Drawdown Option for Belize is to enhance the institutional, technical, and financial capacity of the Government of Belize (GoB) to manage risk resulting from the occurrence of natural hazards, including the adverse effects of climate change. The program aims to enhance the institutional, technical, and financial capacity of the Government of Belize (GoB) to manage risks resulting from the occurrence of natural hazards, including the adverse effects of climate change. The operation aims to strengthen policy and legislative reforms to improve climate and disaster resilience in construction, planning, preparedness, and response activities. Policy reforms are organized under two pillars: Pillar 1: Strengthening National Resilience and Disaster Preparedness and Response Capacities, focuses on strengthening Belize’s national resilience and preparedness and response systems through the NDPRP (PA1), the National Land Use Policy (PA2), and regulations consisting of a National Building Code (PA3). Pillar 2: Strengthening Financial and Fiscal Resilience Against Natural Hazards and Climate Change, equips Belize with the tools and buffers needed to respond quickly to hazards, through reforms enhancing financial preparedness and resilience [Disaster Risk Financing (DRF) Policy – (PA4)], fiscal discipline and stability [Medium-Term Fiscal Framework (MTFF) – (PA5)], and financial protection and recovery [(Microinsurance regulations – (PA6)]. The operation requires an IDA credit in the amount of 20 million US dollars under the Small States Exception Policy, with its first allocation in FY26.