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FIJI Post-Disaster Needs Assessment Mainstreaming disaster and climate risk within the national (and sub-national) development planning and budgetary system varies between sectors and levels of government, and needs to be consistent and enforced to ensure sustainable development, more resilient systems and safer communities to reduce future damage and loss from disasters. 4.5.1 Identifying Increased Risks as a Result of TC Winston Following TC Winston, the damage incurred on some communities may have increased future risks from hazards. For example, where coastal defences were destroyed by storm surges, the risk from future storm surges, king tides and high tides to the community will have increased. Similarly, damage to vegetation on slopes has increased the future risk from landslides. As such, detailed surveys should be conducted to identify new risks in affected communities. Identification of new risks should be prioritized in areas where schools, health centres and critical infrastructure will be reconstructed. 4.5.2 Promoting Risk Awareness at the Community Level Resilience at the community level is a critical component and outcome of an effective DRM system. Investment in community-based DRM (CBDRM) and climate change adaptation (CCA) activities can enhance community understanding of the risks to which the community is exposed and support the implementation of effective prevention, mitigation and preparedness activities. CBDRM initiatives are implemented by many agencies and government departments in Fiji. For example, Nawaqarua village in Ba Province constructed a community evacuation centre and conducted evacuation drills following participation in CBDRM training, which contributed to the fact that no lives were lost during TC Winston despite Ba being one of the most affected areas. Common methodologies for CBDRM and CCA initiatives with clear links to sub-national government processes should be encouraged. For instance, in the Western Division, CBDRM and CCA activities are already being integrated into the community and divisional development process, thereby ensuring that root causes of disaster risk are being addressed. This also provides an opportunity for investment in community infrastructure to be informed by an understanding of current and future risks to ensure resilience. 4.6 Funding and Finance Mechanisms 4.6.1 Building Fiscal Resilience While improving the resilience of the citizens of Fiji is paramount, the Government of Fiji should also aim to improve the country’s fiscal resilience to natural and climatic disasters. The first step to building fiscal resilience is to understand the country’s disaster risk profile as mentioned above. Once the hazard exposure is understood, actuarial analysis can be undertaken to provide indicative financial losses to these disasters. This analysis was undertaken for tropical cyclones and earthquakes/tsunamis in the PCRAFI, which noted that Fiji faced average annual losses of F$158 million (US$85 million) due to earthquakes and tropical cyclones. Furthermore, in the next 50 years, Fiji has a 50 percent chance of experiencing a loss exceeding F$1.5 billion (US$806 million) and a 10 percent chance of a loss exceeding F$3 billion (US$1.6 billion). 132 This PDNA provides an actual calculation of damage and losses which, when combined with past expenditures from disasters, help the government to better understand the contingent liabilities placed on the national budget from disasters. This will enable the government to develop an informed disaster risk finance and insurance strategy to build fiscal resilience against disasters. 4.6.2 Disaster Risk Finance Tools in Fiji Fiji has approximately F$3 million (US$1.6 million) available in contingent disaster risk finance and insurance (DRFI) instruments to facilitate disaster response. The National Disaster Relief and Rehabilitation Fund, also known as the Prime Minister’s Fund, can release up to F$1 million (US$0.5 million), and the recently established Rehabilitation Fund receives an annual appropriation of F$2 million (US$1 million). That said, in any given year, there is a 57 percent chance that Fiji will experience government emergency losses that exceed the F$3 million (US$1.6 million) contingency provision. 133 132 PCRAFI (Pacific Catastrophe Risk Assessment and Financing Initiative) (2011) Country Risk Profile: Fiji, September 2011. 133 PCRAFI (2014) Disaster Risk Finance and Insurance Note: Fiji, https://www.gfdrr.org/sites/gfdrr/files/publication/Country-Note-Fiji.pdf 116 Tropical Cyclone Winston, February 20, 2016
FIJI Post-Disaster Needs Assessment 4.6.3 Developing a Disaster Risk Finance and Insurance (DRFI) Strategy Options for consideration for the development of a DRFI Strategy include: Identify the level of contingent liabilities from natural disasters. This is the first step to understanding which financial tools will be most effective to reduce the burden on the fiscal purse. Develop an overarching disaster risk financing strategy aligned to existing processes. Fiji has taken a proactive ex-ante approach to DRFI by establishing dedicated domestic reserves. Available funds are limited, however, and options for risk transfer should be considered. Thus, an overarching DRFI strategy should be developed and endorsed by the cabinet, which would create a single document to articulate available financing options and the associated policies behind these tools. An action plan for implementation activities is also recommended. Consider additional financial tools beyond domestic reserves. Additional financial tools, such as contingent credit and risk transfer, will help reduce the level of contingent liabilities faced by the Government of Fiji. Build capacity within the domestic insurance industry to provide catastrophe risk insurance for buildings. This will help to reduce the rebuilding cost faced by the government and private households while providing incentives to ensure that building codes are followed and assets are maintained to an insurable quality. 4.7 Recovery and Reconstruction needs for DRM In addition to the recovery and reconstruction needs identified in Table 75, there is also a need for the identification of safe relocation areas within the worst hit provinces (e.g., Lomaiviti and Ba), with existing social infrastructure. The social infrastructure and relocation costs are not adequately captured in this assessment due to unknown parameters such as scale, availability of safe relocation sites and relocation distances. These factors are not yet known and need to be further studied. A comprehensive multi-hazard risk assessment will be required to inform the resettlement planning and decision making process for both residential as well as public infrastructure, such as hospitals and schools. Priority also needs to be given to zoning of at risk areas for the various types of natural hazard risks, to enable application of appropriate engineering design solutions. Relocation of settlements must be resorted to only when no other solution is feasible. Communities requiring relocation on account of high risk areas should be consulted with a view to building a consensus on the issue, particularly with regard to livelihoods as well as socio-cultural sensitivities. Table 75: Recovery, Reconstruction and Resilience Needs in the DRM Sector (F$ million) Reconstruction, replacement and repair of priority assets and buildings Recovery Reconstruction Resilience Total 2.7 2.7 Strengthen governance and institutional arrangements 0.9 0.9 Understand risk 2.1 2.1 Strengthen community resilience 4.7 4.7 Develop a comprehensive DRM communications strategy 0.2 0.2 Develop a monitoring and evaluation framework and system to track the development and implementation of DRM across government agencies and publish a biennial state of DRM report 0.1 0.1 Invest in catastrophe risk insurance, including regional schemes 4.0 4.0 Total 2.7 12.0 14.7 Source: Estimations by Assessment Team. Note: A detailed breakdown of recovery needs by sector is included in Annex 2. Tropical Cyclone Winston, February 20, 2016 117
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