Peru Second Disaster Risk Management Development Policy Loan with a Catastrophe Deferred Drawdown Option

The Second Disaster Risk Management Development Policy Loan with a Catastrophe Drawdown Option (Cat DDO) aimed to strengthen Peru’s institutional and legal framework to reduce the country’s fiscal and physical vulnerability to disasters. This operation supported three pillars of policy reform. The first was to improve efficiency in public resource allocations for disaster risk management; the second was to strengthen policies to reduce vulnerabilities in infrastructure in the education and housing sectors and to implement flood protection measures; and the third was to increase the government’s capacity for post-disaster recovery and reconstruction.  

In the education sector, the Ministry of Education advanced policy reforms to create the National Program for School Infrastructure in 2014, which created the legal and institutional framework to initiate a short-term intervention in the Lima region.  

Within the framework of this operation, the target of 10 percent of seismic risk reduction in school infrastructure was achieved.  Furthermore, the Ministry of Education continued to prioritize investments in school infrastructure and, in 2017, approved the first National School Infrastructure Plan 2025, which included a seismic vulnerability reduction program and became a key instrument guiding policy actions and investments in safer schools.