Extra US$10M towards Tonga’s Cyclone Gita Recovery [1]
Friday, June 22, 2018 - 21:03
An additional US$10 million has been approved by the World Bank’s Board of Executive Directors to help Tonga continue recovering from Tropical Cyclone Gita that struck Tongatapu and ‘Eua causing widespread damage in February. TC Gita, a category 4 storm, is the strongest to severely impact Tonga since 1982.
The funds for Tonga’s Second Inclusive Growth Development Policy Operation will come through a grant from the World Bank’s International Development Association (IDA), Crisis Response Window [2], which was established in 2011 to help recipients recover from severe disasters and crises.
Michel Kerf, Country Director for Papua New Guinea and Pacific Islands, said the supplemental financing strengthens Tonga’s government efforts for cyclone recovery needs, ensuring its finances are sustainable.
“The World Bank stands by the government of Tonga as it continues to deliver on its reform agenda while facing the impacts of the worst natural disaster to hit the Kingdom in decades.”
In addition to recovering from TC Gita, the World Bank said in a statement that Tonga’s government will advance its longer-term economic reform agenda which includes increasing revenue collection, better manage spending on public sector salaries, and adopting a rule-based fiscal strategy.
It also plans to adopt more streamlined rules for foreign investment, increase private sector participation in public enterprises, put in place employment relations legislation, and regulate the energy sector more efficiently.
Tonga’s government is currently giving cash handouts to those whose homes were damaged or flattened by TC Gita.
The cost of damage inflicted by Gita is estimated to be $356 million pa’anga.