Project profile — Catastrophe Risk Insurance Facility for Central America - Honduras



Overview 

CA-3-D000577001
$14,400,000
IBRD Trust Funds - World Bank (44001)
2014-03-25 - 2024-06-30
Operational
Global Affairs Canada
NGM Americas

Country / region 

• Honduras (100.00%)

Sector 

• Government And Civil Society, General: Public finance management (15111) (60.00%)
• Banking And Financial Services: Formal sector financial intermediaries (24030) (30.00%)
• Disaster Prevention And Preparedness: Disaster prevention and preparedness (74010) (10.00%)

Policy marker 

• Gender equality (significant objective)
• Environmental sustainability (cross-cutting) (significant objective)
• Participatory development and good governance (not targeted)
• Trade development (not targeted)
• Biodiversity (not targeted)
• Climate change mitigation (not targeted)
• Climate Change Adaptation (principal objective)
• Urban issues (not targeted)
• Desertification (not targeted)
• Children's issues (not targeted)
• Youth Issues (not targeted)
• Indigenous Issues (not targeted)
• Disability (not targeted)
• ICT as a tool for development (not targeted)

Description 

The Catastrophe Risk Insurance Facility for Central America (CRIFCA) provides natural disaster risk insurance coverage for Central American countries - this project focuses on Honduras. Central America is highly vulnerable to natural disasters, such as earthquakes, hurricanes, and excess rainfall. Natural disasters typically disrupt economies, threaten the ability of a country to maintain essential services such as education, health and security, and jeopardize timely debt repayments. Natural disaster risk insurance is an essential tool to minimise the impact of natural disasters on a country's economy. The insurance provides countries with access to immediate financial payouts that are key to recovery and reconstruction efforts and that lessen the impact on ongoing poverty reduction efforts and the hard-won development gains of Central American countries. This project builds on the Caribbean Catastrophe Risk Insurance Facility (CCRIF), a multi-country, pooled disaster risk insurance facility established by the World Bank with the support of Canada and other donors in 2007. The Catastrophe Risk Insurance Facility for Central America project aims to provide disaster insurance coverage to the seven member countries of the Council of Ministers of Finance of Central America (COSEFIN): Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, and the Dominican Republic at the request of their governments. Canada’s funds, provided through the World Bank, support the capitalization of the insurance pool for Central American countries. The funds also provide technical assistance to help Honduras develop disaster risk management strategies and, when necessary, pay Honduras’ initial entry fees and premiums.

Expected results 

The expected outcomes for this project include: (i) earthquake and hurricane/cyclone insurance products for Council of Ministers of Finance of Central America (COSEFIN) countries (in particular Honduras) sustainably established as part of the existing Caribbean Catastrophe Risk Insurance Facility; (ii) Honduras has access to affordable excess rainfall insurance; and (iii) improved capacity of COSEFIN countries (in particular, Honduras) to respond to and recover from natural disasters, allowing them to better address the needs of affected populations and environments.

Results achieved 

N/A

Budget and spending 


Original budget $0
Planned disbursement $0
Transactions
Country percentages by sector
Type of finance Aid grant excluding debt reorganisation
Collaboration type Bilateral
Type of aid Contributions to specific-purpose programmes and funds managed by implementing partners
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