Tomoyuki Kimura, director general of ADB’s strategy, policy and partnerships department, said the contingent disaster financing (CDF) will be “a quick and flexible source of funds for developing member countries affected by disasters until funds from other sources become available”.

Countries in Asia and the Pacific region are the most disaster-prone in the world.

Between 2014 and 2017, there were 55 earthquakes, 217 storms and cyclones and 236 severe floods, killing about 33,000 people and affecting 650 million, according to the UN.

Once CDF is approved for a country, it remains active until a disaster occurs.

The country will then be able to access the financing for urgent relief and recovery efforts – minimising disruptive reallocations from other budgets.

Kimura said the scheme will also “help promote greater preparedness and risk management” in disaster-prone countries through supporting pre-disaster policy reforms.

He also pointed out that other ADB emergency or regular lending instruments will still be available to support recovery and reconstruction efforts.