Financing Risk Prevention Activities in Mexico: The Fund for ...

Financing Risk Prevention Activities in Mexico:

The Fund for Disaster Prevention (FOPREDEN)

Financing Risk Prevention Activities in Mexico:

The Fund for Disaster Prevention (FOPREDEN)

Coordinación General de Protección Civil Sistema Nacional de Protección Civil CENAPRED

Enrique Guevara OrtízNational Center for Disaster Prevention (CENAPRED)


Mexico Risk Profile

• Because of its geographic situation, Mexico is highly susceptible both to hydrometeorological and geological events.

• Mexico is particularly vulnerable to flooding due to its complex topography and the existence of urban settlements in risky areas, socioeconomic conditions, etc.

• According to socio‐economic assessment of the impact of disasters carried out by CENAPED, almost 90% of disasters related to natural phenomena correspond to extreme hydrometeorological events, mostly droughts and flood.


The Future

• The number of the so called natural disasters in Mexico has increased in recent years, not only because of changes in the weather regimes, but also because of the increased infrastructure and vulnerability of some sectors of the society.

• Climate change scenarios suggest more severe weather events as storms and tropical cyclones

Examples of prevention actions in Mexico

• National Risk Atlas• Early Warning System for Tropical

Cyclones (SIAT‐CT)

• Loss and damage assessment

• Financial and risk transfer instruments



FOPREDEN is a federal fund that supports disasterprevention by funneling resources to publicinstances at federal level , states and municipalities,for activities related to risk assessment, riskreduction, and capacity building on disasterprevention.

One important aspect of FOPREDEN is that itpromotes informed decision making aboutinvestment in risk reduction by requiring states tocomplete a risk assessment (including thedevelopment of a risk atlas) before being eligible forfinancing other projects.

FOPREDEN is sustained in an integrated riskmanagement vision, it promotes and replicate modelprevention projects. Its resources are included in theannual budget and approved by the Congress

FOPREDEN


Preventive actions financed by FOPREDEN include:

Actions focused on the identification and evaluation ofhazards, vulnerabilities and risks;

Actions focused on risk reduction and mitigation of thedamages caused by the impact of natural phenomena, aswell as actions to avoid social construction of risks;

Actions to strength the preventive capacities of thepopulation and self protection before risk situationsdevelop.

Examples of preventive projects financed by FOPREDEN: Risk Atlas, Early Warning Systems, Studies for Risk Reduction and Adaptation to Climate Change, Socio‐economic studies on the impact of disasters (loss and damage assessment)


Diagram of Operation

FOPREDEN contributes with 55‐90% of the project cost, and the applicant pays the rest (10‐45%)


Research Fund and Strategic Projects

The research fund is intended to promote the development of studies for Integrated Risk Management to encourage and support applied research and technology development for disaster prevention and mitigation of risks derived from natural phenomena.

Strategic projects submitted by or through Civil Protection Coordination, are considered a national priority and comply with any of the following assumptions:

• In the event that a risk threaten the national security• A risk affects more than one state;• Preventive projects that serve as prototypes;• Research on issues related to Integrated Risk Management;• Projects contributing to greater effectiveness and usefulness of FOPREDEN,

Those proposed by two or more public agencies or states

FOPREDEN contributes with 100% of the project cost


Conclusions

FOPREDEN finances risk assessment and risk reduction actions, which are clearly policy measures that reduce risk of extreme hydro‐meteorological phenomena. Such is the case of early warning systems, integrations of systems and infrastructure to mitigate the impact of disasters, actions to reduce vulnerability, loss and damage estimation.

The attention currently given by authorities to climate change, represents an opportunity for FOPREDEN to promote the development and implementations of projects oriented to reduce vulnerability, particularly in sectors under high risk.

Still, there is a wide gap between the total disbursement in reconstruction against the investment in prevention.

Not investing in prevention lead to excessive material and social costs which also compromise the sustainable development of our country

The prevention, understood as an investment, will represent in the near future substantial savings, which could be used in the development and economic growth of the country


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Financing Risk Prevention Activities in Mexico: The Fund for ...

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