Second Costa Rica Disaster Risk Management Development Policy Loan with a CAT DDO

The development objective of the Second Costa Rica Disaster Risk Management Development Policy Loan with a Catastrophe Deferred Drawdown Option (Cat DDO) for Costa Rica is to enhance the Government of Costa Rica’s capacity to manage disaster risk resulting from the occurrence of natural and health related hazards and the impacts of climate change. The operation builds on the successful implementation and achievements of the first Cat DDO and reflects the ongoing policy dialogue and collaboration between the World Bank and the Government of Costa Rica on disaster risk management (DRM) and climate change adaptation. The operation is fully aligned with the government’s DRM program and its efforts to address identified institutional, financial, and policy gaps. It is closely aligned with the priorities under the 2023-2026 national development and public investment plan; the 2020-2025 national risk management plan; and the 2018-2030 national climate change adaptation policy (PNACC). The operation is structured around two policy areas and four prior actions that support strategic actions aimed at increasing financial resilience against shocks; integrating climate, natural hazard, and gender-responsive climate risk reduction considerations into the government’s investment planning processes; and promoting sustainable and risk-informed planning at the territorial level.