Vanuatu - Second Disaster Risk Management Development Policy Grant with a Catastrophe Deferred Drawdown Option Project

Overview & Synopsis

Ratings of the Vanuatu Second Disaster Risk Management Development Policy Grant with a Catastrophe Deferred Drawdown Option for Vanuatu were as follows: overall outcome was satisfactory; relevance of prior actions was highly satisfactory; achievement of objectives (efficacy) was satisfactory; Bank performance was satisfactory. Key lessons are that in highly disaster-prone and capacity-constrained small island contexts, reform progress in disaster risk management and resilient recovery requires long-term engagement, with continuous analytical and technical assistance to translate legislation into operational tools and to sustain momentum through multiple shocks; that timely access to multiple financing instruments, combined with strong engagement of central agencies, enables coordinated, inclusive, and rapid decision-making and supports early recovery for vulnerable groups while maintaining a prudent macro-fiscal stance; and that policy-based instruments such as the Catastrophe Deferred Drawdown Option can catalyze broader institutional and legislative reforms beyond the operation, advancing disaster risk management, resilient recovery, and debt transparency agendas. Recommendations include maintaining a multi-year, programmatic approach that pairs development policy financing with targeted technical assistance to operationalize new laws and guidelines at national and provincial levels; strengthening whole-of-government coordination mechanisms for recovery to clarify roles, channel budget resources quickly, and integrate gender-responsive and community-driven approaches; preserving and expanding access to contingent and rapid-response financing to protect fiscal space during shocks while reinforcing debt transparency practices; and using policy platforms created by Catastrophe Deferred Drawdown Options to advance aligned follow-on reforms in disaster risk governance, financial resilience, and adaptive social protection, supported by continued partner coordination and capacity building.