The World Bank Implementation Status & Results Report PCRAFI : Furthering Disaster Risk Finance in the Pacific (P161533) PCRAFI : Furthering Disaster Risk Finance in the Pacific (P161533) EAST ASIA AND PACIFIC | Pacific Islands | Finance, Competitiveness and Innovation Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2017 | Seq No: 7 | ARCHIVED on 29-Jun-2020 | ISR42357 | Implementing Agencies: Pacific Catastrophe Risk Insurance Company, Pacific Catastrophe Risk Insurance Foundation, Pacific Catastrophe Risk Insurance Foundation Key Dates Key Project Dates Bank Approval Date: 14-Feb-2017 Effectiveness Date: 16-Feb-2017 Planned Mid Term Review Date: 31-Oct-2019 Actual Mid-Term Review Date: 26-Jul-2019 Original Closing Date: 30-Jun-2021 Revised Closing Date: 30-Jun-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to improve access to post-disaster rapid response finance to Pacific Island Countries. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Establishment and Operations of PCRIC and PCRIF:(Cost $1300000.00 M) Capitalization of PCRIC:(Cost $20100000.00 M) Institutional Capacity Building on Disaster Risk Finance and Insurance:(Cost $2300000.00 M) Development of Disaster Risk Insurance Products:(Cost $5500000.00 M) Monitoring and Evaluation:(Cost $530000.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Pacific Catastrophe Risk Insurance Foundation (PCRIF) and PCRIC have both been established albeit with some management and operational challenges. PCRIC has fully achieved the PDO indicators on payouts and claims paying capacity as set out in the project results framework. PCRIC made a payout of US$4.5 million to Tonga on May 12, 2020 due to TC Harold which passed Tonga on April 10, 2020. This was PCRIC’s record payment to date, and much welcomed by the Government of Tonga. Under the PCRAFI initiative, Tonga has received a total of US$9.2 million in payouts since 2014, for premium payments of US$2.24 million to date. Tonga has paid roughly 10 percent of premium payments out of their own budget, with PCRAFI financing the rest. PCRIC has appointed a full Board of Directors but implementation challenges remain, including the recruitment of CEO; finalization of project audits; development of new products; and limited outreach to client countries. The recruitment of a CEO is an important step which should 6/29/2020 Page 1 of 5 The World Bank Implementation Status & Results Report PCRAFI : Furthering Disaster Risk Finance in the Pacific (P161533) significantly enhance PCRIC’s capacity, particularly in terms of client outreach. However, since the mid-term review, progress has been made and PCRIC’s capacity has slowly increased. The Development Objective of the project remains relevant and can reasonably be expected to be achieved. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Substantial High High Sustainability Fiduciary Substantial High High Environment and Social Low Low Low Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Pacific Catastrophe Risk Insurance Company (PCRIC) operationalized IN00859267 ►Pacific Catastrophe Risk Insurance Company (PCRIC) operationalized (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 22-Sep-2016 20-Mar-2018 22-Jun-2020 30-Jun-2021 PCRIC makes full insurnace payout withing 30 days of the occurence of a covered (insured) event IN00859286 ►PCRIC makes full insurance payout within a 30 days of the occurence of a covered (insured) event (Yes/No, Custom) 6/29/2020 Page 2 of 5 The World Bank Implementation Status & Results Report PCRAFI : Furthering Disaster Risk Finance in the Pacific (P161533) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 14-Feb-2017 20-Mar-2019 22-Jun-2020 30-Jun-2021 The PCRIC made a payout to Tonga within 8 days of TC Gita making landfall in Tonga. Following TC Harold, PCRIC took 32 days to make a payout,due to Covid-19 related delays from the calculation agent and, more importantly, processing delays by the banks used by PCRIC to process the Comments: payment. Given that all other payments were made within 30 days and that the delay of the payout following TC Harold is minor and explained in part by the impact of Covid-19 on a key stakeholder, this indicator is still considered to be a "yes" The claims paying capacity of the PCRIC is enough to sustain a 1-in-200 year insured loss IN00859287 ►The claims paying capacity of the PCRIC is enough to sustain a 1-in-200 year insured loss (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 14-Feb-2017 20-Mar-2019 22-Jun-2020 30-Jun-2021 Intermediate Results Indicators by Components Establishment and Operations of PCRIC and PCRIF IN00859288 ►PCRC Operationalized (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 14-Feb-2017 16-Dec-2019 22-Jun-2020 30-Jun-2021 Capitalization of PCRIC IN00859289 ►PCRIC Capitalization (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 18,100,000.00 18,100,000.00 20,100,000.00 Date 14-Feb-2017 16-Dec-2019 22-Jun-2020 30-Jun-2021 Development of Disaster Risk Insurance Products IN00859292 6/29/2020 Page 3 of 5 The World Bank Implementation Status & Results Report PCRAFI : Furthering Disaster Risk Finance in the Pacific (P161533) ►Number of Insurance Products Developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 14-Feb-2017 16-Dec-2019 22-Jun-2020 30-Jun-2021 Monitoring and Evaluation IN00859291 ►Monitoring and Evaluation (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 14-Feb-2017 16-Dec-2019 22-Jun-2020 30-Jun-2021 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P161533 TF-A4171 Effective USD 25.33 25.33 0.00 19.71 5.62 78% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P161533 TF-A4171 Effective 14-Feb-2017 16-Feb-2017 16-Feb-2017 30-Jun-2021 30-Jun-2021 Cumulative Disbursements 6/29/2020 Page 4 of 5 The World Bank Implementation Status & Results Report PCRAFI : Furthering Disaster Risk Finance in the Pacific (P161533) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/29/2020 Page 5 of 5