The Parliament of Dominica has consented to establish a fund specifically to deal with the costs associated with natural disasters.
Recent incidents have proven that the island is prone to natural hazards including destructive rainfall events and earthquakes.
The bills for clean-up and restoration following both Tropical Storm Erika and the 2013 Christmas Eve trough were crippling.
Hence the reason for the vulnerability, risk and resilience fund.
“The cost associated with rehabilitation and reconstruction is significant. While friendly countries and regional and international institutions make available, emergency assistance in the form of cash, technical assistance or emergency response personnel, funding of the more long term rehabilitation will always be a major challenge for Government. It is in this context, and with the aim of building greater resilience in self-financing, rehabilitation and recovery, after disasters and external shocks that the Government of Dominica proposes to establish a Vulnerability Risk and Resilience Fund. For such a facility to be sustainable, it must be appropriately designed and managed. The IMF is now providing technical assistance to the Government, to establish the Fund.”
Tax revenues and resources from the Citizenship by Investment Programme will be allocated to establish the fund which will be managed by the Eastern Caribbean Central Bank.
“It is our hope that the Fund will be further capitalized with resources from specially established facilities by the United Nations and other international partners, aimed at reducing vulnerabilities and building resilience to the impacts of climate change.
It is also expected that proceeds from green projects developed by the Government and with a revenue stream will also contribute to the Fund. Two projects already identified are the Geothermal Energy Development Project and the National Waste to Energy initiatives.”
This fund could mean less financial shocks after sudden disaster and quicker response and recovery times.