Board Approval of Early Warning, Early Finance and Early Action Project in Afghanistan
On February 16th, the World Bank Board approved the $226.5 million Early Warning, Early Finance and Early Action Project (P173387). This project is co-led by SP&J, GPURL, and FCI. The project benefits from a $25 million grant from the Global Risk Financing Facility (GRiF), a MDTF co-managed by FCI, which invests in piloting new and scaling up existing pre-arranged crisis and disaster risk financing instruments, including market-based instruments, and the systems that enable better response.
This project aims to improve food security and nutrition outcomes for the most vulnerable households living in drought-prone rural areas, establish early-warning systems, pre-arrange financing mechanisms for drought protection. The Early Finance component, led by FCI, will help establish financing arrangements that ensure timely support to food and nutritionally insecure households affected by climate-induced droughts. A risk layering approach has been developed to leverage different financial instruments to release finance when needed, including contingencies fund and CRW. In addition, the project will also provide funding for Technical Assistance to help the government explore the feasibility of market-based instruments to mitigate very severe drought events that are less frequent. Read more.
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