News and Press Release Source World Bank Posted 23 Jan 2021 Originally published 22 Jan 2021
WASHINGTON, D.C., January 22, 2021 –The World Bank Board of Directors approved today a $80 million credit to support Nicaragua’s emergency response and recovery needs after the devastation caused by hurricanes Eta and Iota. The Nicaragua Hurricanes Eta and Iota Emergency Response Project will help the country’s disaster-relief response and restoration of services and economic activities in critical sectors in the most affected communities.
The Project will prioritize the country’s efforts in the Caribbean Coast Autonomous Regions which were impacted by the compound effects of the two hurricanes. The Autonomous Regions have the highest incidence of extreme poverty in the country, making their population—which includes a large number of indigenous people and Afro-descendants—especially vulnerable to external shocks. The Project will also finance the rehabilitation and resilient reconstruction of prioritized public and community infrastructure and housing.
“The hurricanes compounded the economic and health challenges of the COVID-19 Pandemic. As such, we need to continue to provide the affected population with timely emergency relief, as well as help them rebuild their communities in a resilient manner,” said Iván Acosta, Nicaragua’s Minister of Finance and Public Credit.
The Project will also focus on restoring the income of affected populations in critical economic activities, with a focus on the small-scale fisheries sector. Affected communities and their representatives will be involved in prioritizing project activities and ensuring that activities are tailored to their needs and cultural preferences.
“The hurricanes affected some of the most vulnerable communities in Nicaragua and the resulting interruption of access to basic services and livelihoods is of particular concern,” said Kinnon Scott, World Bank Resident Representative for Nicaragua. “We will work closely with Nicaragua to help these communities recover.”
The $80 million credit for the Nicaragua Hurricanes Eta and Iota Emergency Response Project will be financed by the International Development Agency (IDA), the World Bank’s fund for the poorest countries, and will be implemented in collaboration with the United Nations Office of Project Services (UNOPS). Strict fiduciary requirements are in place to guarantee that all resources are used in the most efficient manner to benefit the people of Nicaragua.
The project has a maturity of 30 years which includes a grace period of five years.