Colombia to reduce its vulnerability to natural disasters with IDB support

$120 million loan will help the country prepare for natural disasters and climate change.

Colombia will reduce its vulnerability to natural hazards and climate change with the help of a $120 million loan approvedby the Inter-American Development Bank (IDB).

Colombia is one of themost vulnerable countries to natural disasters in Latin America, with more than eight out of ten Colombians located in disaster-prone areas and 87 percent of the country’s GDP at risk from such events. More than 150 natural disasters have struck Colombia over the past 40 years, claiming more than 32,000 lives and affecting more than 12 million people.

This is the first operation in a policy-based loan program. Under these loans, which provide governments with flexibility to fund priority programs, disbursements are made after achieving certain goals agreed upon between the IDB and the borrowing country.

"The program will help the Colombian government protect the country's most vulnerable populations," said Sergio Lacambra, IDB project team leader. “Incorporating risk management and adaptation to climate change in the national development plan will be an important contribution to sustainable development in Colombia."

The program will advance reforms in the areas of risk identification, risk reduction, and disaster management. The reform process will also improve coordination among key government institutions during the emergency, rehabilitation, and reconstruction phases.

The program also includes a series of pilot projects in Pereira and other vulnerable municipalities to strengthen their ability to assess natural disaster risks. Furthermore, it will ensure the physical integrity of buildings such as hospitals, schools, and government offices by changing Colombia’s regulations for earthquake-resistant construction.

The loan is for a period of 20 years with a grace period of five years at a variable interest rate based on LIBOR.