The World Bank approved on Wednesday a $275 million loan for Morocco to enable the country better deal with the impacts of natural disasters and climate-related shocks, and to upgrade its institutional framework for disaster risk management.
The loan will “help Morocco develop a comprehensive framework for disaster risk management, building on a previous World Bank-supported program, the Integrated Disaster Risk Management and Resilience Program for Results”, said Jesko Hentschel, World Bank Maghreb Country Director.
“Developing a comprehensive risk insurance is particularly critical for the vulnerable population whose livelihood can be threatened in the event of a natural disaster”, he added.
The WB will support reforms designed to strengthen the financial, governance, and operational framework of the Solidarity Fund against Catastrophic Events (Fonds de Solidarité contre les Evènements Catastrophiques, FSEC). This fund is a critical tool, which complements private insurance by providing compensation to the uninsured, such as the poor and most vulnerable.
This program also aims to develop a registry of beneficiaries to allow timely, targeted compensation to populations affected by a disaster.
After a natural disaster, the WB natural disasters facility would give the Moroccan government immediate access to liquidity, adding a critical layer to Morocco’s risk management policies.
Besides, the WB program seeks to upgrade the country’s institutional framework for disaster risk management as well, by strengthening the National Civil Protection system and creating a National Flood Risk Management Information System.