Nicaragua: World Bank Approves Credit To Reduce Nicaragua's Vulnerability To Natural Disasters Contact Person: Lee Morrison (202)-458-8741 Lmorrison1@worldbank.org Alejandra Viveros (202)-473-4306 Aviveros@worldbank.org For more information on this project visit http://www4.worldbank.org/sprojects/Project.asp?pid=P064916 WASHINGTON, April 3, 2001--The World Bank today approved a US$13.5 million interest-free credit to strengthen Nicaragua's capacity to mitigate the effects of natural disasters by strengthening Nicaragua's newly created National System for Disaster Management and develop programs to help local governments assess disaster risks and apply sustainable land use and building standards. "The Natural Disaster Vulnerability Reduction Project aims to reduce the heavy toll of human life and property damage caused by earthquakes, fires, hurricanes, volcanic eruptions and other natural disasters that hamper economic growth and disproportionately affect the lives of the poor in Nicaragua," said Donna Dowsett-Coirolo, Country Director for Central America. Nicaragua's geographic location makes the country a frequent target for Hurricanes, droughts and fires, volcanic eruptions, and severe earthquakes. The Natural Disaster Vulnerability Reduction Project will finance policy assessments and basic studies of Nicaragua's watershed management, building codes, and seismic risk to identify areas at risk and develop a national natural disaster mitigation strategy. The credit will also support training and technical assistance at the municipal level to integrate hazard analysis into local land use planning and to equip and train local committees in disaster response. In addition, the project will include a disaster awareness campaign to educate Nicaraguans on the proper procedures in case of an emergency. T he US$13.5 million equivalent, interest-free credit has a 40-year maturity and a 10-year grace period. The total cost of the project is US$16 million. For more information on the World Bank's work in the Latin America and Caribbean region, please visit: http://www.worldbank.org/lac