Tonga - Pacific Resilience Project Under Pacific Resilience Program : restructuring (English)

The development objective of the Pacific Resilience Project Under Pacific Resilience Program for Tonga is to strengthen early warning, resilient investments, and financial protection of Tonga. The restructuring will bring the following changes: (i) the... See More + The development objective of the Pacific Resilience Project Under Pacific Resilience Program for Tonga is to strengthen early warning, resilient investments, and financial protection of Tonga. The restructuring will bring the following changes: (i) the World Bank treasury will no longer act on behalf of Tonga and will not enter into contracts with re-insurance companies; (ii) under the arrangements, the premia will be paid by the direct payment method by the implementing entity; (iii) disaster insurance coverage is treated as a non-consulting service from a procurement perspective. The direct contracting of Pacific Catastrophe Risk Insurance Company (PCRIC) will be done on an exceptional circumstance listed under paragraph 3.7(e) of the procurement guidelines as the provision of catastrophe risk insurance is a form of ex ante contract that provides support in the event of a natural disaster. The remaining procurement transactions for Tonga for non-consulting services will be subject to the Bank’s post review; and (iv) the financing agreement for the project will be amended to include a covenant which requires Tonga to enter into an insurance contract with PCRIC or other catastrophe risk insurance provider, under terms and conditions acceptable to International Development Association (IDA), to obtain insurance coverage of the disaster and climate-related events.  See Less -