In a first for the Asian Development Bank (ADB), the bank has set up a new financing partnership facility focusing on disaster risk finance.
Established with the Government of Japan, the Pre-Arranged Resources for Enhancing Preparedness and Resilience financing partnership facility (PREPARE) will be administered by ADB. It will include a Pacific Trust Fund (P-PREPARE) with an initial contribution of US$2.9 million from Japan.
The new financial facility will act as an overarching platform to enable collective action while accommodating diverse risk profiles and institutional capacities across DMCs and amplifying subregional efforts.
“As part of the PREPARE facility, P-PREPARE will provide crucial support for Pacific countries to proactively manage disaster risk and build financial preparedness, helping ensure timely, reliable, and sustainable funding for disaster response and recovery,” said ADB Director General for the Pacific Emma Veve.
“It will help strengthen regional cooperation by building shared systems that advance resilience, economic growth, and regional security.”
P-PREPARE will fund capacity-building activities in data analytics, improve affordability and alignment of DRF instruments, and support the development of DRF strategies and innovative financing solutions across Pacific countries.
The fund will also provide targeted support for the Pacific Catastrophe Risk Insurance Company, a regional disaster risk insurance provider owned by Pacific countries, to boost financial resilience by enabling rapid insurance payouts during disasters.
Disaster risk profiles vary across subregions, reflecting differences in exposure, vulnerability, and fiscal capacity.
Pacific DMCs are acutely vulnerable to shocks due to climate impacts and natural hazards. In 2024, a 7.3 magnitude earthquake in Vanuatu left more than 80,000 people in urgent need and caused an estimated US$197 million in damage.
ADB’s DRF support to Pacific DMCs includes loans, grants, and technical assistance, including contingent disaster financing and the Asia Pacific Disaster Response Fund.
ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
