World Bank Supports the Strengthening of Mexico’s Social Resilience
1 March 2012: The World Bank has approved a US$300.75 million loan to strengthen Mexico's social resilience to extreme situations, in particular those caused by climate change. The development policy loan promotes state-level climate change action planning, disaster risk reduction (DRR), and the implementation of land development activities, especially at the municipal level, as well as community-level sustainable forest management (SFM). This is the first World Bank programme that focuses on reducing the social impact from climate change effects.
The project activities seek to enhance access to information and participation of civil society groups in the development of climate change adaptation policies. It also aims to improve infrastructure risk and service management, and restore forests, wetlands and other ecosystems that protect the poor from natural disasters and contribute to their well-being. Among its activities, the project will focus on: financing mechanisms and schemes to foster inter-government coordination and collaboration, with different players involved; financial structures for risk reduction, as well as urban and land development with social and environmental goals in at least 60 municipalities; and public policies and programmes that promote community-based forest management and include the participation of citizens in the establishment of public policies.
Three Mexican institutions are responsible for implementing the loan: the Secretary of Social Development (SEDESOL); the Secretary of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA); and the National Forest Commission (CONAFOR). The Secretary of Environment and Natural Resources (SEMARNAT) will have a coordination role, which in turn has designated Nacional Financiera (NAFIN) as financial agent. The loan has a variable interest rate and margin, and the maturity date is 15 August 2023. [World Bank Press Release]