Cyclone Sidr, a category 4 storm, hit Bangladesh coast on November 15th, 2007.  It was accompanied by tidal waves up to five meters high and surges up to 6 meters in some areas, breaching coastal and river embankments, flooding low lying areas and causing extensive physical destruction. High winds and floods also caused damage to housing, roads, bridges, electricity and communication. Drinking water was contaminated by debris and many sources were inundated with saline water from tidal surges, and sanitation infrastructure was destroyed. About 3,447 deaths were reported with over 55,000 people sustaining physical injuries. Of the 2.3 million households affected to some degree by the effects of Cyclone Sidr, about one million were seriously affected.

Four of Bangladesh’s thirty districts were classified as “severely affected” and a further eight were classified as “moderately affected”. A Joint Damage, Loss, and Needs Assessment (JDLNA) was conducted to ascertain the extent of the damage caused by the storm and to define a comprehensive and feasible recovery plan. The team comprised of staff from the Government of Bangladesh and members of the International Community, including The World Bank, European Commission (EC), International Labour Organization (ILO), International Federation of Red Cross and Red Crescent Societies (IFRC), Asian Development Bank (ADB), United Nations Development Program (UNDP), Japan Bank for International Cooperation (JBIC), Japan International Cooperation Agency (JICA), Islamic Development Bank (IDB), Food and Agriculture Organization (FAO), World Food Program (WFP), World Health Organization (WHO), UK Department for International Development (DFID), United States Agency for International Development (USAID), and United Nations Children's Fund (UNICEF).

 The JDNLA estimated total damage and losses caused by the cyclone at US$ 1.7 billion. Damage and losses were concentrated in the housing sector (50 percent of the total), productive sectors (30 percent), and on public sector infrastructure (14 percent). More than two-thirds of the disaster effects were physical damages and one third were economic losses. Financial requirements for recovery and reconstruction were assessed at US$ 1.3 billion. A total of US$ 360 million was estimated for immediate recovery activities aiming at social protection, infrastructure repairs and income recovery, while US$ 953 million was estimated for medium- to long-term recovery and reconstruction phases focusing on sustainable production in agriculture industry and commerce, restoration of livelihoods, and reconstruction of disaster-proof infrastructure. A rough estimate of US$ 4 billion was suggested to improve disaster risk management over a 15-year period, with five strategic priorities: (a) risk identification and assessment; (b) strengthening and enhancing emergency preparedness; (c) institutional and community capacity building; (d) risk mitigation investments; and (e) introducing catastrophe risk financing in the longer term.