Component 4: Contingency emergency response component.

This is a mechanism for financing eligible expenditure in the event of an emergency caused by a natural disaster. By activating this component, funds can be released quickly to reduce damage to infrastructure, ensure business continuity and recover more quickly from the disaster. Following a major disaster, the affected country can ask the World Bank to channel resources from other components of the PRSF to the CERC. As a condition for the release of funds, an Emergency Response Manual (ERM) will be prepared for each country, stipulating fiduciary, safeguard, monitoring and reporting requirements on the use of CERC and other key provisions on coordination and implementation.