The Asian Development Bank (ADB) has approved a $56.4 million programme to help the Kyrgyz Republic and Tajikistan strengthen their ability to respond to disasters, as both countries face high exposure to earthquakes, floods, and other natural hazards but lack sufficient fiscal buffers and risk transfer mechanisms.
The Risk-Layered Disaster Relief Finance Program will enhance financial preparedness by combining two pre-arranged ADB instruments designed to cover different layers of disaster risk.
The programme integrates Contingent Disaster Financing (CDF), which provides budgetary support in the event of medium-severity natural hazards or health emergencies, with a Disaster Relief Bond (DRB), a catastrophe bond issued on international capital markets that delivers rapid liquidity following high-severity disasters.
“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 Leah Gutierrez, ADB Director General for Central and West Asia. “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 initiative prioritises policy reforms, stronger institutional capacity, and improved governance to support a more coordinated, transparent, and effective approach to disaster risk management and financing.
Programme preparation was supported by ADB’s technical assistance for developing a Disaster Risk Transfer Facility under the Central Asia Regional Economic Cooperation (CAREC) Program, a partnership that promotes sustainable development and economic growth across the region.
Funding includes a $53.1 million grant from the Asian Development Fund (ADF), alongside $3.3 million from the Asia-Pacific Climate Finance Fund. The ADF provides grants to the poorest and most vulnerable countries in Asia and the Pacific, helping hundreds of thousands of people out of poverty and supporting job creation.
Founded in 1966, the Asian Development Bank works with 69 member countries to advance inclusive, resilient, and sustainable growth across Asia and the Pacific through innovative financing tools and strategic partnerships.
