PORT VILA, December 24, 2024 – The World Bank has fast-tracked US$12 million to the Government of Vanuatu for emergency response and recovery, following a devastating 7.3 magnitude earthquake on December 17.
This support comes through a Rapid Response Option (RRO), which is a new form of flexible, fast access to financing for crisis response introduced by the World Bank.
“The Government is assessing the damage from the earthquake and is continuing to work to deliver more support, shelter, and assistance to those in need,” said Vanuatu’s Caretaker Minister for Finance and Economic Management, Hon. Johnny Koanapo. “This support from the World Bank, along with support from other partners, will be vital in ensuring we have the resources required to assist those most impacted.”
The RRO - part of the World Bank’s expanded Crisis Preparedness and Response Toolkit introduced in June 2023 - enables countries to repurpose a portion of unused World Bank financing already approved to address emergency needs. Eight other Pacific Island countries have signed up to take advantage of RROs in the event of a disaster.
“The scale and traumatic nature of this disaster alongside the loss of life and widespread damage has been devastating to see and we stand with the people of Vanuatu as they work to recover and reconstruct in the days and weeks to come,” said Stephen N. Ndegwa, World Bank Country Director for the Pacific and Papua New Guinea. “This disaster will also hit Vanuatu’s economy hard with damage to infrastructure and commerce in Port Vila during peak tourism season. We hope this assistance will contribute to Vanuatu’s fast recovery, restore jobs, and provide vital assistance to those who need it most.”
In addition to the RRO, the World Bank is also carrying out a Global Rapid post-disaster Damage Estimation (GRADE) that will help estimate the economic damage caused by the earthquake. These estimates have been used in response to previous disasters in Vanuatu and across the world to inform recovery planning and finance mobilization.
The World Bank’s other ongoing support for Vanuatu is strengthening disaster resilience in the country with a focus on preparedness, standby financing, and more resilient infrastructure, including in Port Vila and in areas outside the capital such as South Santo. The World Bank previously provided emergency financing for Vanuatu following Severe Tropical Cyclones Judy and Kevin and a 6.5 Mw earthquake in Vanuatu’s north in February and March 2023.
The World Bank is also in the process of discussing a broader package of support with the government including emergency budget support.
The US$12 million grant comes from the International Development Association (IDA), the World Bank’s fund for the most in-need countries. The RRO will carry no repayments, ensuring Vanuatu can focus resources on immediate relief and rebuilding efforts without any debt obligations.
