A powerful alliance of international financial institutions has committed up to US$6.1 billion in comprehensive support for Jamaica’s reconstruction efforts following the devastation of Hurricane Melissa. The coordinated financial package, announced jointly on Monday, represents a strategic response to Prime Minister Andrew Holness’s appeal for international assistance.
The consortium brings together five major development banks: CAF–Development Bank of Latin America and the Caribbean, the Caribbean Development Bank (CDB), the Inter-American Development Bank (IDB), the International Monetary Fund (IMF), and the World Bank Group (WBG). This unprecedented collaboration demonstrates a unified approach to supporting Jamaica’s sustainable recovery while maintaining fiscal responsibility through a blend of emergency liquidity provisions, sovereign financing mechanisms, grant allocations, and private investment facilitation.
Initial disaster-response mechanisms already activated include US$662 million in immediate relief funding. This comprised US$37 million from Jamaica’s national contingency reserves, US$91 million from the Caribbean Catastrophe Risk Insurance Facility, US$150 million from a World Bank catastrophe bond, US$300 million through the IDB’s Contingent Credit Facility, and up to US$84 million from the World Bank’s Catastrophe Deferred Drawdown Option.
With total hurricane damage estimated at US$8.8 billion, the institutions have structured a three-year recovery package worth US$3.6 billion. The allocation breakdown includes: US$1 billion from CAF for government-prioritized projects; US$200 million from CDB for resilient infrastructure and small business rehabilitation; US$1 billion in sovereign financing from the IDB; US$415 million from the IMF’s Rapid Financing Instrument for natural disasters; and US$1 billion from the World Bank for budgetary support, risk guarantees, and critical sector development.
Additionally, the coalition has mobilized US$12 million in technical assistance grants for recovery planning, with expectations of further funding. Recognizing the essential role of private capital, the institutions are targeting US$1.9 billion in private-sector investments through IDB Invest, the International Finance Corporation, and the Multilateral Investment Guarantee Agency.
The participating organizations emphasized their commitment to helping Jamaica ‘build forward better,’ incorporating resilience principles, innovative approaches, and long-term sustainability into the reconstruction process. This comprehensive support framework aims to not only restore damaged infrastructure but to position Jamaica with enhanced capabilities to withstand future climate-related disasters.