Mozambique Climate Insurance Tender

Project SummaryApproval Date 08 Jul 2021Planned Completion Date 31 Dec 2026Sovereign Non-Sovereign SovereignSector Agriculture and Rural DevelopmentDAC Sector Code 32161Commitment U.A 30000000Status ImplementationProject General DescriptionThe Climate Insurance Finance and Resilience Project CLINFIREP seeks to promote the development of climate-resilient infrastructure and agricultural diversification using climate-smart agriculture practices to enhance Climate Resilience for sustained economic growth in Mozambique. The project also supports the Government national preparedness plan to reduce social vulnerability to drought through adoption of preventive insurance policies and programs and helping strengthen national capacity to respond to climate disasters. This is an important intervention as the effects and impacts of climate change are already being felt in the form of erratic and inadequate rainfall patterns and declining on-farm productivity. The total project cost is 33.94 million Units of Account 47.78 million dollars and will be implemented over 5 years 2021-2026 in the 10 drought prone districts of the Maputo Province Gaza and Inhambane Province. It builds on past investments by the Bank on drought resilience and is well aligned with the Government of Mozambique GoMs priorities particularly the Disaster Risk Reduction Emergency Fund the National Adaptation Plans and the overall policy framework on climate change adaptation and mitigation. It is anticipated that the outcomes of the Project will increase GoMs institutional capacity to develop climate proof integrated development programs and devise adequate climate insurance products in the targeted areas in Mozambique. The CLINFIREP will also facilitate the participation of the country in the sovereign insurance pool of the African Risk Capacity ARC or other insurance mechanisms which supports countries that experience climate shocks including droughts and tropical cyclones.Project ObjectivesThe CLINFIREP proposes to reduce the impact of climate events and strengthen the resilience capacity of communities and production systems to better cope with the effects of drought which are exacerbated by rural poverty food insecurity and land degradation. The specific objectives of the project are i to improve climate resilient infrastructure ii to promote climate-resilient income-generating activities and strengthen food security and nutrition and iiito enhance insurance mechanisms against climate-related disasters.BeneficiariesThe Project will benefit the communities of the selected districts displaced people in the Cabo Delgado Province the Government at large particularly the National Institute of Disaster Management INGD including the Disaster Management Fund DMF Food Security and Nutrition Secretariate SETSAN and Ministry of Public Works Housing and Internal Waters MOPH Ministry of Economy and Finance