Following an adverse natural or man-made event that causes a major disaster, the Government may request the Bank to re-allocate project funds to this component (which presently carries a zero allocation) to support response and reconstruction*. This component would allow the Government to request the Bank to reallocate project funds and designate them as Immediate Response Mechanism funds to be engaged to partially cover emergency response and recovery costs. This component could also be used to channel additional funds should they become available as a result of the emergency.

* Such a reallocation would not constitute a formal Project restructuring, as permitted under the particular arrangements available for contingent emergency response components