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Multidonor Disaster Prevention Trust Fund (MDP)

MDP finances non-reimbursable technical cooperation operations and investment grant operations to support IDB borrowing member countries to: (i) manage risks related to natural hazards by reducing vulnerability, and by preventing and mitigating disasters before they occur; (ii) leverage knowledge, good practice, tools and government commitment for risk management solutions; and (iii) provide a vehicle for developing a shared approach to supporting disaster risk management in the region.

MDP is part of IDB's NDC Invest Platform, a one-stop shop of the IDB Group to help countries access resources needed to translate national climate commitments into investment plans and bankable projects. NDC Invest is a platform that includes the entire universe of financial and non-financial instruments of the IDB Group, and it is comprised of four elements: NDC Programmer, NDC Pipeline Accelerator, NDC Market Booster and NDC Finance Mobilizer. Together, the components aim to enable progress toward both the NDC and IDB lending objectives, as well as toward achievement of the UN Sustainable Development Goals.

Support provider

Canada: Foreign Affairs, Trade and Development Canada (DFATD); Japan: Ministry of Finance of Japan (MOF); Korea: Ministry of Strategy and Finance of Korea; Spain: Ministerio de Economía y Competitividad de España

Purpose of support

Scoping and project preparation

Creating enabling environments and building institutional capacity

Project and program implementation

Eligibility criteria

Activities must be related to:

Identification and documentation of risk at sector or country level to natural hazards
Preparation of loan projects or components of loan projects related to disaster prevention.
Strengthen/create early warning systems, communication and education.
Environmental management and land use planing for reduction vulnerability.
Strengthening of institutions capabilities, policies and programs for risk management and disaster response
Strengthening of insurance markets including the design of financial instruments and other technical work to allow countries evaluate and price their risk.

The resources of the fund may also be used to finance investments required with the above-mentioned activities. As much as possible, MDP approved operations would be pilot projects that showcase the importance of disaster prevention activities related to natural disasters. These operations would also, in principle, have the possibility of replication in larger scale by beneficiary countries through the use of other Bank instruments.

Non- Eligible activities: (i) On-going maintenance of existing works and measures; (ii) Projects that seek reimbursement for measures already undertaken; (iii) Projects that are designed to protect or which provide a commercial advantage to new developments for profit seeking; and (iv) Humanitarian aid.

Regional projects for the Eastern Caribbean states are eligible if financed through the Caribbean Development Bank (CDB), in accordance with the established mechanisms between the IDB and CDB.

Financial instruments

Grants

Decision-making information

The Office of Outreach and Partnerships (ORP) is responsible for the management and reporting of the Fund.

Information on how to...

Contact Heleno Barbosa at helenob@iadb.org for more information. The proposals need to support disaster risk-management activities and the preparation of disaster prevention projects that will benefit all Bank borrowing member countries.

Climate objective

Adaptation

Sectors and themes

Disaster risk reduction

Type of support provider

Multilateral

Type of recipient

Public entity at the national level, Public entity at the sub-national level

Co-financing required

Trustee or administrator

Inter-American Development Bank (IDB)

Contact information

https://www.iadb.org/en/aboutus/trustfunds/fundsearch.cfm?Fund=MDP&Lang=en

ORP Office: Heleno Barbosa, helenob@iadb.org

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Multidonor Disaster Prevention Trust Fund (MDP)

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