NASSAU, BAHAMAS — The Inter-American Development Bank (IDB) has approved a US$160 million loan to The Bahamas for policy reforms to improve its natural disaster risk governance.
According to the IDB, the operation seeks to create better governance conditions for implementing public policies for risk identification and reduction, disaster preparedness, recovery, and financial protection.
The IDB noted that the loan is expected to foster a macroeconomic environment conducive to the program’s objectives.
“Additionally, this operation supports the Disaster Risk Management (DRM) Act, which establishes the legal, institutional, and budgetary conditions needed to implement more effective public policies in disaster risk management,” the IDB stated.
“This legislation, passed in Parliament in December 2022, introduces a new paradigm for addressing disaster risk, prioritizing prevention based on accurate risk analysis, and establishing an institutional framework that defines the responsibilities of various public entities and levels of government, along with financial resources for preventing and responding to emergencies.”
The IDB continued: “The Bahamas is among the countries in the Latin America and Caribbean region that are most exposed to natural disasters, especially climate-related ones. Over the last 20 years, it has experienced 14 major catastrophes—mainly hurricanes—resulting in 400 fatalities, 50,000 affected individuals, and over US$6.7 billion in damages. Climate change is likely to exacerbate these impacts.
“The IDB-approved program will benefit the inhabitants of the country who are exposed to disasters, who number as many as 344,279 in the case of a hurricane with extreme winds. The operation is the first loan in a two-part programmatic series.”
According to the IDB, the loan has a 20-year repayment period and a 5.5-year grace period.
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