The Asian Development Bank (ADB) has approved a $56.4 million program to help the Kyrgyz Republic and Tajikistan boost their capacity to respond to disasters.
Both countries are vulnerable to disasters, such as earthquakes and floods, but lack the fiscal capacity and risk transfer mechanisms to effectively respond to hazards. The Risk-Layered Disaster Relief Finance Program will enhance their financial preparedness through a combination of two pre- arranged ADB financing instruments targeting different layers of disaster risks.
The program combines the Contingent Disaster Financing (CDF), a budgetary support financing in the event of medium-severity natural hazards and health emergencies; with the Disaster Relief Bond (DRB), a catastrophe bond issued into the international capital market to provide quick liquidity to the countries should high-severity disasters occur.
“The program will help reduce fiscal strain for both countries in the aftermath of disasters, which include geophysical hazards, extreme weather events, and health emergencies,” said ADB Director General for Central and West Asia Leah Gutierrez. “By integrating policy reforms and institutional strengthening with innovative risk-layered financial solutions, the program enables a shift from reactive disaster response to proactive disaster risk financing to build the financial resilience of both countries.”
The program prioritizes implementation of policy reforms, institutional capacity strengthening, and governance structure enhancement to support a more coordinated, transparent, and effective approach to disaster risk management and financing.
The program was prepared with support from ADB’s Technical Assistance for Developing a Disaster Risk Transfer Facility in the Central Asia Regional Economic Cooperation (CAREC) Region. The CAREC Program, supported by ADB, is a partnership between countries and development partners promoting sustainable development and accelerating economic growth across the region.
The program will be funded with a $53.1 million grant through the Asian Development Fund (ADF), complemented by $3.3 million cofinancing from the Asia-Pacific Climate Finance Fund. The ADF provides grants to the poorest and most vulnerable countries in Asia and the Pacific. During 2021–2024, the fund helped 384,000 people emerge from poverty and generated around 500,000 jobs.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
