Tonga will receive US$1.27 million or TP$2,362,351.27 from the World Bank to help its recovery after Cyclone Ian.
The World Bank says Tonga will be the first country to benefit from a payout under its Pacific Catastrophe Risk Insurance Pilot.
Tonga is one of 6 Pacific island countries – together with Cook Islands, Marshall Islands, Samoa, Solomon Islands and Vanuatu – currently participating in the Pacific Catastrophe Risk Insurance Pilot, a statement from World Bank says.
Launched in January 2013, the pilot tests a risk transfer arrangement modelled on an insurance plan, and uses ‘parametric triggers’, such as cyclone intensity or earthquake magnitude to determine payouts, which allows for quick disbursements.
Franz Drees-Gross, World Bank Country Director for the Pacific Islands said, “Cyclone Ian has affected hundreds of families in several communities, destroying people’s homes and critical infrastructure such as health centres and schools,”
Funds received under the scheme will allow the government to meet some of those urgent needs as they look to repair and rebuild in the days and weeks ahead,” Drees-Gross said.
Tonga’s Minister for Finance and National Planning, Hon. Dr. ‘Aisake Valu Eke said, "The cash received from the catastrophe risk insurance pilot makes an important financial contribution for carrying out the government strategy for mitigating natural disasters, to ensure that response efforts to help the people of Ha'apai recover and return to their normal everyday lives can continue without interruption or delay,"