The World Bank
Barbados Disaster Risk Management Cat DDO(P507916)
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Program Information Document (PID)
Concept Stage | Date Prepared/Updated: 20-Jan-2025 | Report No: PIDIC00182
The World Bank
Barbados Disaster Risk Management Cat DDO(P507916)
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BASIC INFORMATION
A. Basic Project Data
Project Beneficiary(ies) Operation ID Operation Name
Barbados P507916 Barbados Disaster Risk Management Cat DDO
Region Estimated Approval Date Practice Area (Lead) Financing Instrument
LATIN AMERICA AND Development Policy
27-Mar-2025 Urban, Resilience and Land
CARIBBEAN Financing (DPF)
Borrower(s) Implementing Agency
Barbados Ministry of Finance,
Economic Affairs and
Investment
Proposed Development Objective(s)
To enhance the Government of Barbados' institutional, technical, and financial capacity to manage risk, resulting from
the occurrence of natural or health-related hazards, including the adverse effects of climate change and disease
outbreaks.
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Financing (US$, Millions)
Maximizing Finance for Development
Is this an MFD-Enabling Project (MFD-EP)? No
Is this project Private Capital Enabling (PCE)? No
SUMMARY
Total Financing 30.00
DETAILS
Total World Bank Group Financing 30.00
World Bank Lending 30.00
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Barbados Disaster Risk Management Cat DDO(P507916)
Decision
The review did authorize the preparation to continue
B. Introduction and Context
Country Context
1. This DRM Development Policy Loan (DPL) with a Catastrophe (Cat DDO) for Barbados, in the amount of $30
million, is a stand-alone operation designed to strengthen Barbados’s disaster and climate resilience. As a Small
Island Developing State (SIDS), the country experiences heightened exposure to tropical storms, rising sea levels,
and extreme weather events. These risks are compounded by the economic reliance on climate-sensitive sectors,
such as tourism and fisheries. Barbados’ public debt remains high at approximately 105% of GDP as of September
2024, further constraining fiscal space for disaster response. Despite these challenges, Barbados has
demonstrated a strong commitment to fiscal discipline, economic reform, and climate resilience through its
Economic Recovery and Transformation Plan (BERT). In addition, the country has maintained a robust relationship
with the International Monetary Fund (IMF) through the Extended Fund Facility (EFF) and the Resilience and
Sustainability Facility (RSF) arrangements.
2. The proposed DPL with Cat DDO operations aligns with and directly supports the government’s efforts to
enhance disaster risk management (DRM) and resilience, as articulated in the Barbados National
Comprehensive Disaster Management (CDM) Policy 2022 and the CDM Country Work Program 2019–2023.
These key policy frameworks establish a strategic vision for managing disaster risks and building resilience to
natural hazards, climate change, and public health emergencies. The Cat DDO strengthens the government’s
capacity to implement these frameworks by providing timely and predictable financing, ensuring fiscal resilience
in the face of disasters while incentivizing the continued implementation of disaster risk reduction (DRR) reforms.
Relationship to CPF
3. This DPL with Cat DDO operation fully aligns with the World Bank Group’s (WBG’s) ongoing reengagement in
Barbados, which seeks to support the government’s efforts to build resilience against external shocks. In addition,
the operation is aligned with the priorities outlined in the forthcoming Country Engagement Note (CEN), which
emphasizes climate adaptation, disaster risk management (DRM), and institutional strengthening. Central to this
alignment are the operation’s Prior Actions (PA) that underpin this operation, which will contribute directly to
enhancing Barbados' fiscal and institutional capacity to respond to disasters, supporting the broader objectives of
the World Bank’s Green, Resilient, and Inclusive Development (GRID) strategy.
C. Proposed Development Objective(s)
4. The Project Development Objective is to enhance the Government of Barbados' institutional, technical, and
financial capacity to manage risk, resulting from the occurrence of natural or health-related hazards,
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Barbados Disaster Risk Management Cat DDO(P507916)
including the adverse effects of climate change and disease outbreaks. This objective will be achieved through
reforms under the following pillars:
Pillar 1: Strengthening Financial Resilience against Natural Hazards and Climate Change
Pillar 2: Integrating Climate and Disaster Resilience into Sector Development.
Key Results
5. The operation's expected key results are designed to enhance Barbados' disaster resilience in key sectors and
financial preparedness, in alignment with the country’s strategic priorities for addressing natural and climate -
driven hazards and their fiscal impacts. Key Results include: (i) an increase in the percentage of fiscal instruments
available for immediate disaster response, ensuring timely financial mobilization during emergencies; (ii) a
reduction in the time required to disburse emergency funds after a disaster declaration, enabling more rapid
recovery and response; and (iii) enhanced resilience in the fisheries sector, combined with an improved coastal
zone and storm water management, which will contribute to sustainable development and disaster risk reduction.
D. Concept Description
6. The Cat DDO operation supports two pillars:
a) Under Pillar 1: Strengthening Financial Resilience against Natural Hazards and Climate Change, the program is
expected to improve financial preparedness, enabling Barbados to quickly mobilize resources and mitigate the
economic impacts of disasters and public health emergencies; support fiscal resilience against natural hazards and
climate change; and strengthen the institutional framework to better manage public assets and post-disaster
expenditures. The DRF Policy (Prior Action 1, PA1) and the Catastrophe Fund Act (PA2), will enhance fiscal
resilience by enabling rapid access to financial resources during crises through risk-layering strategies and flexible
disbursement mechanisms.
b) Under Pillar 2: Integrating Climate and Disaster Resilience into Sector Development, the program also includes
sectoral reforms to reduce disaster risks and promote sustainable development aims to enhance the resilience of
Barbados's Blue Economy, particularly by safeguarding tourism, fisheries, and coastal resources. The Integrated
Coastal Zone Management Act (PA3) protects coastal resources and critical infrastructure, while the Sustainable
Fisheries Management and Development Act (PA4) strengthens the resilience of fisheries and supports the Blue
Economy. Additionally, the Stormwater Management Act (PA5) improves flood mitigation through enhanced
drainage systems and nature-based solutions. Altogether, these interventions contribute toward a coordinated
approach to building resilience, aligning with global disaster risk reduction and climate adaptation frameworks.
E. Poverty and Social Impacts, and Environmental, Forests, and Other Natural Resource Aspects
Poverty and Social Impacts
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Barbados Disaster Risk Management Cat DDO(P507916)
7. All the of the prior actions under this operation are set to have positive or neutral impacts on poor and
vulnerable Barbadians. Across Caribbean countries, climate-related shocks disproportionately threaten poor and
vulnerable people, who are more likely to work in exposed sectors like agriculture and tourism. Their housing and
physical assets may also be of lower quality; and they lack the financial resources to bounce back or to invest in
adaptation strategies. Ensuring that finance is available to fund response to natural disasters and that it can be
disbursed quickly – the underlying objective of Prior Actions 1 and 2 – offers clear benefits to poor and vulnerable
households. Similarly, Prior Actions 3 and 5 should reduce household exposure to a wide range of natural hazards,
including sea-level rise, storm surges, and coastal erosion for all Barbadians, not just the poor. Prior Action 4 offers
clear medium- and long-term benefits to Barbadians whose livelihoods depend on fishing. However, since PA 4
entails implementing catch limits and other restrictions to ensure the sustainability of critical fish stock, it may
take time for fishers to adjust. Monitoring the effects of the Sustainable Fisheries Management and Development
Bill on fishers’ livelihoods can help mitigate any potential negative effects on vulnerable fisherfolk.
Environmental, Forests, and Other Natural Resource Aspects
8. The prior actions supported under the Barbados Cat DDO program are expected to have neutral to significant
positive effects on the environment, forests, and natural resources. PA1 and PA2, while environmentally neutral,
contribute indirectly to resilience-building and recovery by enabling timely financial responses to disasters,
including scaling up social safety nets and promoting environmentally sustainable recovery efforts. PA3 and PA4
are anticipated to generate substantial positive environmental impacts. The approval of the Integrated Coastal
Zone Management Bill (PA3) will enhance coastal ecosystem protection, foster biodiversity, and promote
sustainable marine resource use, aligning with Barbados’s Blue Economy goals. Similarly, the Sustainable Fisheries
Management Bill (PA4) will establish a framework for sustainable fishing practices, protecting marine biodiversity
through measures such as catch limits and marine conservation areas. While no adverse environmental effects
are anticipated, Barbados has a robust regulatory framework, including requirements for Environmental Impact
Assessments under the Planning and Development (Amendment) Act 2020, to mitigate risks and enhance the
program's positive environmental outcomes.
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CONTACT POINT
World Bank
Doekle Geert Wielinga
Senior Disaster Risk Management Specialist
Anton Dobronogov
Senior Economist
Borrower/Client/Recipient
Barbados
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Barbados Disaster Risk Management Cat DDO(P507916)
Implementing Agencies
Ministry of Finance, Economic Affairs and Investment
Ryan Straughn
Minister - Finance
Ryan.Straughn@finance.gov.bb
FOR MORE INFORMATION CONTACT
The World Bank
1818 H Street, NW
Washington, D.C. 20433
Telephone: (202) 473-1000
Web: http://www.worldbank.org/projects
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APPROVAL
Task Team Leader(s): Doekle Geert Wielinga, Anton Dobronogov
Approved By
Practice Manager/Manager: Federica Ranghieri 07-Jan-2025
Country Director: Federico E. Baechli 20-Jan-2025
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