Jamaica will receive up to US$6.7 billion over the next three years from a coalition of international financial institutions to support recovery and reconstruction efforts following Hurricane Melissa. The funding package is being coordinated by CAF – Development Bank of Latin America and the Caribbean, the Caribbean Development Bank (CDB), the Inter-American Development Bank Group (IDB Group), the International Monetary Fund (IMF), and the World Bank Group (WBG).
This initiative was developed in response to a request from Jamaican Prime Minister Andrew Holness. It aims to help Jamaica achieve a fiscally responsible, long-term recovery through emergency preparedness financing, sovereign financing, grant support, and private sector investments. The announcement precedes an upcoming call between Prime Minister Holness and representatives from these organizations to discuss implementation plans.
Jamaica’s disaster risk financing framework enabled quick access to funds for immediate needs after Hurricane Melissa. The country received US$662 million in liquidity through various sources: US$37 million from government reserves, US$91 million from the Caribbean Catastrophe Risk Insurance Facility (CCRIF), US$150 million via a WBG catastrophe bond, US$300 million from the IDB’s Contingent Credit Facility, and up to US$84 million under the World Bank Group’s Catastrophe Deferred Drawdown Option.
The estimated damages from Hurricane Melissa are about US$8.8 billion. To address this, planning for comprehensive recovery is underway with input from international partners. A new financial support package of up to US$3.6 billion may be made available for government-led recovery programs over three years: CAF could provide up to US$1 billion; CDB up to US$200 million for infrastructure and small business support; IDB up to US$1 billion in sovereign financing; IMF loans of up to US$415 million under its Rapid Financing Instrument; and World Bank sovereign financing of up to US$1 billion.
In addition, technical assistance and policy advisory services are being offered by these institutions using grant funding totaling at least US$12 million so far.
Private investment is also seen as crucial for scaling recovery efforts while maintaining fiscal stability. Regional platforms led by IDB Invest and the World Bank Group’s International Finance Corporation (IFC) along with Multilateral Investment Guarantee Agency (MIGA) aim to mobilize approximately US$2.4 billion in private capital—split equally between IDB Group and World Bank Group—to aid Jamaica’s reconstruction.
According to a joint statement: “The World Bank Group, CAF, CDB, IDB Group, and IMF remain committed to ensuring that Jamaica’s recovery is grounded in a comprehensive and collaborative approach that leverages both international partnership and private sector engagement. By combining robust financial instruments, technical guidance, and a shared commitment to building forward better, Jamaica is well-positioned not only to restore what was lost but also to strengthen its resilience to future disasters.”
The organizations emphasize that ongoing collaboration will be key as Jamaica works toward greater resilience against future natural disasters.
