AMCDRR DISCUSSES INVESTMENT IN DISASTER RISK REDUCTION

Ulaanbaatar /MONTSAME/ The AMCDRR 2018 featured event ‘Increasing public-private partnership and investment for disaster risk reduction’ was hosted by the Government of Mongolia. The panelists of the session shared their experience in improving public-private partnership in disaster risk reduction. In his opening remarks Foreign Minister of Mongolia D.Tsogtbaatar emphasized the importance of public-private partnership (PPP) in disaster risk reduction. He mentioned the Memorandum of Understanding concluded between the NEMA and Mongolian National Chamber of Commerce and Industry (MNCCI) in 2016, which made a significant shift from dialogue to action. As in a number of other Asian region countries, the Government of Mongolia has institutionally built the capacity of public and private partnership in DRR by establishing the National Platform on DRR by the decree of the Government on 8 March 2018. The Platform consist of members and representatives from various stakeholders include NGOs and private entities. Deputy Minister of Finance of Mongolia Kh.Bulgantuya introduced the economic issues caused by disaster, particularly dzud (harsh winter), including poverty and urban settlement leading to inadequate infrastructure. Due to IMF’s Extended Fund Facility program being implemented in Mongolia various expenditures have been cut. Thus, she mentioned the importance of developing PPP and microfinancial tools such as insurance in order to invest in disaster risk reduction. Ms. Kh.Bulgantuya said that some works have been done in this regard, but there’s plenty of work to be done. Minister of Social Welfare and Resettlement of Myanmar Win Myat Aye highlighted the importance of cooperation between public and private sectors and regional initiatives and cited several practices of Myanmar. He mentioned that the private companies in Myanmar are actively engaged in disaster risk reduction and rehabilitation actions, closely collaborating with government. Not all Governments are capable of investing in DRR, thus regional or local initiatives are needed to bring together experiences and resources of private and public sector. Myanmar developed financial resilience and disaster insurance to meet people’s need. As a result of it total expenditure on disaster prevention and assistance has doubled. Principal Disaster Risk Management Specialist of the Asian Development Bank (ADB) Dr. Charlotte Benson said that the need for a change in practise is particularly urgent in view of the huge scale of investment in infrastructure required over the next decade or so. Developing Asia needs to invest USD 26 trillion in infrastructure between 2016 and 2030 to maintain its growth momentum, eradicate poverty and respond to climate change. Private sector financing is critical in meeting this scale of investment and PPP will be an important modality for attracting private investment in infrastructure. PPP projects in developing Asia grew by 11 percent annually from 1991 to 2015. Other panelists including Mr. Ajit Chaudhuri, Assistant Vice President of the Tata Sustainability Group and Dr. Giriraj Amarnath, Research Group Leader: Water Risks and Disasters, International Water Management Institute (IWMI) introduced the examples of successful PPP and microfinancial tools. Mr. Ajit Chaudhuri said “DRR is not a philanthropic action anymore, it has become a matter of our future well being. Businesses must be involved in order to build national disaster management.” Dr. Giriraj Amarnath introduced the Index based Flood Insurance system successfully implemented last year. The system provides insurance services based on the collected data estimating the risk level and validating the transactions. B.Misheel