The World Bank has expedited a grant of $12 million to aid Vanuatu in the aftermath of a severe earthquake that struck on December 17. This funding is provided through a Rapid Response Option (RRO), which offers quick financial assistance for crisis situations, as recently introduced by the World Bank.
"The Government is assessing the damage from the earthquake and is continuing to work to deliver more support, shelter, and assistance to those in need," stated Vanuatu's Caretaker Minister for Finance and Economic Management, Hon. Johnny Koanapo. He emphasized that the support from the World Bank, alongside other partners, is crucial for helping those most affected.
The RRO allows countries to reallocate unused funds from previously approved financing to meet emergency needs. Eight other Pacific Island nations have also signed up for this option in case of future disasters.
Stephen N. Ndegwa, World Bank Country Director for the Pacific and Papua New Guinea, remarked on the disaster's impact: "The scale and traumatic nature of this disaster alongside the loss of life and widespread damage has been devastating to see and we stand with the people of Vanuatu as they work to recover and reconstruct in the days and weeks to come." He noted that Vanuatu's economy would suffer significantly due to infrastructure damage during peak tourism season.
To further assess the situation, the World Bank will conduct a Global Rapid post-disaster Damage Estimation (GRADE) to evaluate economic damages caused by the earthquake. These assessments have been instrumental in past recovery efforts globally.
In addition to immediate relief efforts, ongoing support aims at enhancing Vanuatu’s disaster resilience with improved preparedness measures, standby financing options, and resilient infrastructure development. The World Bank has previously extended emergency financing following cyclones Judy and Kevin as well as an earlier earthquake in 2023.
Discussions are underway regarding additional support packages for Vanuatu’s government, including emergency budget assistance. The current $12 million grant originates from the International Development Association (IDA), targeting countries most in need without imposing repayment obligations on Vanuatu.