Acronyms and Abbreviations AAL Average Annual Loss ACAPS Insurance and Social Welfare Supervisory Authority (Autorité de Contrôle des Assurances et de la Prévoyance Sociale) ABH BCR CAS Agence du Bassin Hydraulique (Water Basin Agency) Benefit Cost Ratio Compte d’Affection Spéciale (Dedicated Budget Instrument) CfP Call for Proposals DAPS DLI Direction des Assurances et de la Prévoyance Sociale (Department of Insurance and Social Welfare) Disbursement Linked Indicator FLCN Fonds de Lutte contre les Catastrophes Naturelles (Fund for the Fight against Natural Disasters) FSEC Fonds de Solidarité Contre les Evenements Catastrophiques (Catastrophic Events Solidarity Fund) GDP GFDRR Gross Domestic Product Global Facility for Disaster Reduction and Recovery GOM Government of Morocco IGAT IRR Inspection Générale de l’Administration Territoriale (General Inspectorate of Territorial Administration) Internal Rate of Return MAGG Ministère des Affaires Générales et de la Gouvernance (Ministry of General Affairs and Governance) MnhPRA M&E MEF Morocco Natural Hazards Probabilistic Risk Assessment Monitoring and Evaluation Ministry of Finance MoI MoU MoI Memorandum of Understanding Mw PAP Magnitude of an earthquake (technically, moment magnitude) Program Action Plan PDO POM Program Development Objective Program Operations Manual SCR Société Centrale de Reassurance (Central Reinsurance Company) TABLE OF CONTENTS
disaster risk and resilience management strategy Lack of transparent management process, including in of M&E, of FLCN financed projects Actions to strengthen management process, including M&E, for FLCN projects Introduction of annual CfP and M&E system for the FLCN More transparent and results oriented approach to managing the FLCN DLI#1 & #2 Lack of citizen engagement in Morocco’s risk management Actions to improve a more systematic approach to citizens’ engagement Introduction of beneficiary feedback processes and GRM Systematic integration of citizens’ feedback in risk management DLI#1, #2, #4 & #5 Results Area 2: Scaling up Disaster Risk Reduction Activities Lack of strategic approach to funding disaster risk reduction investments for local governments and at the national level Annual allocation of FLCN funds to co-finance disaster risk reduction investments for local governments at the national level Disaster risk reduction investments implemented at local and national levels Protection of population and assets against natural hazards DLI# 2 (financing stage) DLI# 4 (selection stage) DLI# 5 (implementation stage) Lack of focus on risk reduction investments Minimum annual allocation of FLCN funds to co-finance risk reduction activities Non-structural risk reduction activities implemented Protection of population and assets against natural hazards, specifically through non-structural activities DLI#3 Results Area 3: Improving Disaster Risk Financing and Insurance Low insurance coverage against catastrophic events Actions to introduce Morocco’s national catastrophic risk insurance program in Morocco Adoption of catastrophic risk insurance law and implementation of implementation legal documents Insurance coverage of population and assets against catastrophic events DLI#7 Lack of financial protection of uninsured population Actions to establish FSEC in Morocco, as required by the draft catastrophic Legal establishment of FSEC in Morocco Financial protection of uninsured population and principal residences DLI#8 structural structural
First twelve months Task Team Leadership and Program supervision Project management 150,000 BB SDC financed international expert with MoI to support Program Management with a focus on One and Two (expert will start work before Program effectiveness) Technical support and capacity building Risk management M&E support and capacity building M&E Procurement support and capacity building Procurement FM support and capacity building FM Social development support and capacity building Social development Environmental support and capacity building Environmental management Technical support to risk financing agenda Risk Finance 12-48 months Task Team Leadership and Program Supervision Project management 100,000 BB per year Continued support by SDC financed international expert with MoI (financing agreed in principle with SDC as a continuation of year one activity) Technical support and capacity building Risk management Procurement supervision Procurement FM supervision FM Environmental supervision Environment management Social development supervision Social development Technical support to risk financing agenda Risk Finance
Annex 1: Results Framework Matrix Program Development Objective: To improve the institutional framework to finance disaster risk reduction activities and strengthen financial resilience to natural disasters for targeted population in the Program area. PDO Level Results Indicators Core DLI Unit of Baseline Target Values Frequency Data for Data CY2016 CY2017 CY2018 CY2019 CY2020 PDO Indicator 1: The FLCN strategic orientation and governance structure are redesigned with a focus on disaster risk reduction ☐ ☒ Text The FLCN focuses mainly on post disaster event risk response outside the context of a larger DRM strategy Preparation of: (i) draft provisions to be included in the Borrower’s 2017 budget law, regarding the establishment of the Steering Committee, and the inclusion of local governments (collectivités territoriales) among the beneficiaries of FLCN financing; and (ii) draft circulars (Circulaires) to be issued (i) the Borrower’s 2017 budget law includes provisions regarding the establishment of the Steering Committee, and the inclusion of local governments (collectivités territoriales) among the beneficiaries of FLCN financing; and (ii) circulars (Circulaires) regarding the establishment of the National Selection Commission and the Secretariat have The Steering committee, the National Selection Commission, the Secretariat and the FLCN website are maintained The Steering committee, the National Selection Commission, the Secretariat and the FLCN website are maintained. A national integrated natural DRM strategy is prepared by the Steering Committee. The Steering committee, the National Selection the Secretariat and the FLCN website are maintained. A national integrated natural DRM strategy is adopted by the Steering Committee. Program Progress Report with supporting documents MoI/
by the MoI regarding the establishment of the National Selection Commission and the Secretariat. The Minister of Interior has decided on the annual allocation from the FLCN for the financing of Eligible been issued by the MoI. An interactive FLCN website that provides public access to information, handles grievances, and reports on the M&E system, has been created PDO Indicator 2: Cumulative number of from eligible risk reduction subprojects (% women) ☐ ☐ # 0 – – 1,000 (50) 4,000 (50) 40,000 (50) Program Progress Report with supporting data MI/ PDO Indicator 3: Minimum number of people in the Program Area ☐ ☒ # 0 – – - 5.85 million 5.85 million Program Progress Report with data on actual insurance coverage (from MEF/ACAPS) MEF/
insured for bodily injury against events PDO Indicator 4: and of the FSEC to protect the uninsured ☐ ☒ Text – The implementation legal documents referred to in Article 71 of the draft catastrophic risk insurance law regarding the establishment of the FSEC are prepared by the MEF and ACAPS The legal documents referred to in Article 71 of the draft catastrophic risk insurance law regarding the establishment of the FSEC are adopted by the Government FSEC received initial financial contributions as per the provisions of the catastrophic risk insurance law Program Progress Report and written evidence of legal documents referred to in Article 71 of draft law and financial contributions received by FSEC. and FSEC Intermediate Results Area 1: Promoting Institutional Reform and Capacity Building Results Indicator 1: Minimum percentage of entities responsible for the of eligible subprojects receiving technical ☐ ☒ % 0 0 50 50 50 50 Program Progress Report MI/
assistance and/or training Results Indicator 2: Improved risk assessment models developed and operational ☐ ☐ Text No – – Probabilistic catastrophe risk models for i) evaluation and assessment (MoI), and ii) catastrophic risk insurance program as per the law (MEF) are developed Probabilistic catastrophe risk models for i) evaluation and assessment (MoI), and ii) catastrophic risk insurance program as per the draft law (MEF) are operational – Program Progress Report and revised cat risk model MoI/ Intermediate Results Area 2: Scaling-up Disaster Risk Reduction Activities Results Indicator 3: Cumulative amount of FLCN funds allocated to eligible subprojects ☐ ☒ # 0 MAD 170 million MAD 340 million MAD 510 million MAD 680 million MAD 850 million Program Progress Report MI/ Results Indicator 4: ☐ ☒ % 0 0 10 10 10 10 Program Progress Report MI/
Minimum percentage of FLCN funds allocated to eligible subprojects Results Indicator 5: Minimum percentage of total funding of eligible subprojects provided by the entities responsible for and partners ☐ ☒ % 0 0 35 40 45 50 Program Progress Report MI/ Results Indicator 6: Cumulative value of total funding of completed eligible subprojects achieving disaster ☐ ☒ # 0 0 0 MAD 100 million MAD 350 million MAD 600 million Program Progress Report MI/ A
risk reduction targets Intermediate Results Area 3: Improving Disaster Risk Financing and Insurance Results Indicator 7: Adoption of the risk insurance legislative and regulatory framework ☐ ☒ Text The draft catastrophic risk insurance law is transmitted by the General Secretary of the Government (Secrétariat Général du to the relevant Ministries, and is adopted by the Government Cabinet (Conseil du The draft catastrophic risk insurance law is transmitted to the Parliament, and the implementation legal documents referred to in Article 71 of the draft catastrophic risk insurance law and providing for the effectiveness of the insurance scheme, are prepared by the MEF and ACAPS The implementation documents referred to in Article 71 of the draft catastrophic risk insurance law and providing for the effectiveness of the insurance scheme, are adopted by the Government - – Program Progress Report and written evidence of actual adoption of law and legal documents referred to in Article 71 of the draft law. MEF/ Annex 2: Disbursement Linked Indicators, Disbursement Arrangements and Verification Protocols 1. Disbursement Linked Indicator Matrix Total Financing Allocated to DLI As % of Total Financing Amount DLI Baseline Indicative timeline for DLI achievement CY2016 CY2017 CY2018 CY2019 CY2020 DLI 1: The FLCN strategic orientation and governance The FLCN focuses Preparation of: (i) provisions to be (i) the Borrower’s 2017 budget The Steering committee, the National The Steering committee, the National The Steering committee, the National A
du Gouvernement) the effectiveness of the insurance scheme, are prepared by MEF and ACAPS adopted by the Government Allocated amount (US$, millions): 34.5 17.25 14.5 7 5 8 0 DLI 8: Establishment and operationalization of the FSEC to protect the uninsured - - The implementation legal documents referred to in Article 71 of the draft catastrophic risk insurance law regarding the establishment of the FSEC are prepared by the MEF and ACAPS The implementation legal documents referred to in Article 71 of the draft catastrophic risk insurance law regarding the establishment of the FSEC are adopted by the Government FSEC received initial financial contributions as per the provisions of the catastrophic risk insurance law Allocated amount (US$, millions): 25 12.5 0 9 8 8 0 Capitalized front-end fee - - - - - - Allocated amount (US$, millions): 0.5 0.25 - 0.5 0 0 0 0
Total Financing Allocated (US$, millions): 35 49 36.67 47.67 31.66 2. DLI Verification Protocol Table # DLI Definition/ Description of achievement Scalability of Disbursements (Yes/No) Protocol to evaluate achievement of the DLI and data/result verification Data source/agency Verification Entity Procedure 1 The FLCN strategic orientation and governance structure are redesigned with a focus on disaster risk reduction DLI1 measures the evolution of the institutional arrangements and management of the FLCN as well as the progress of the development of the national integrated DRM strategy. Yr 1: All documents that are required for the preparation of: (i) the draft provisions to be included in the Borrower’s 2017 budget law, regarding the establishment of the Steering Committee, and the inclusion of local governments (collectivités territoriales) among the beneficiaries of FLCN financing; and (ii) draft circulars (Circulaires) to be issued by MoI regarding the establishment of the National Selection Commission and the Secretariat. These documents will reflect that new strategic orientation of No Program Progress Report/ Secretariat IGAT The Government of Morocco provides official documentation demonstrating that all agreed milestones have been reached each year. DLI results and accuracy of information will be independently verified.
insurance legislative and regulatory framework and minimum number of people in the Program Area insured for bodily injuries against catastrophic events transmitted by the General Secretary of the Government (Secrétariat Général du Gouvernement) to the relevant Ministries, and is adopted by the Government Cabinet (Conseil du Gouvernement) Yr 2: The draft catastrophic risk insurance law is transmitted to the Parliament, and the implementation legal documents referred to in Article 71 of the draft catastrophic risk insurance law are prepared by the MEF and ACAPS Yr 3: The implementation documents referred to in Article 71 of the draft catastrophic risk insurance law are adopted by the Government. Yr 4–5: Actual coverage of people by the catastrophic risk insurance achieved. The insurance program will provide coverage against property damage and bodily injury (permanent disability or death). Evidence shall rely on the number of people covered for bodily injury, and data on the current insurance market in including specific information on insurance aspects and copies of the law and copies of implementation legal documents referred to in Article 71 of the draft catastrophic risk insurance law. MEF/ACAPS. the draft law, and preparation and adoption of implementation legal documents referred to in Article 71 of the draft catastrophic risk insurance law. The Government also provides written detailed evidence on the coverage provided by the catastrophic risk insurance law, such as number of auto and property insurance policies sold. DLI results and accuracy of information will be independently verified.