Jamaica secures US$6.7 billion in international support for Hurricane Melissa recovery

A coalition of international financial institutions has assembled a coordinated support package of up to US$6.7 billion over three years to aid Jamaica’s recovery and reconstruction following Hurricane Melissa.

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The package was assembled 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).

The initiative combines emergency financing, sovereign loans, grants, and private sector investments to support a fiscally responsible, long-term recovery. Prime Minister Andrew Holness is scheduled to meet with representatives from the international financial institutions to discuss implementation plans.

Jamaica’s existing disaster risk financing framework enabled a rapid early response, allowing the government to access US$662 million in immediate funds. This includes US$37 million from national contingency funds, US$91 million from the Caribbean Catastrophe Risk Insurance Facility (CCRIF), US$150 million from a World Bank catastrophe bond, US$300 million from the IDB’s Contingent Credit Facility, and US$42 million (scalable to US$84 million) under the World Bank’s Catastrophe Deferred Drawdown Option.

With damages estimated at US$8.8 billion, recovery will require significant resources and long-term investments. Comprehensive recovery planning is already underway, focusing on critical priorities and reinforcing Jamaica’s resilience.

To that end, a new financial support package of up to US$3.6 billion could be made available to finance the Government’s recovery and reconstruction program over the next three years, comprising:

• CAF: Up to US$1 billion for government-priority areas.

• CDB: Up to US$200 million for resilient infrastructure and small business support.

• IDB: Up to US$1 billion in sovereign financing.

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• IMF: Up to US$415 million under the Rapid Financing Instrument (RFI) large natural disaster window.

• World Bank: Up to US$1 billion for budget support, partial risk guarantees, and investment projects.

The institutions are also providing technical assistance and grant support, with US$12 million already mobilized to strengthen recovery planning and disaster resilience.

Private investment will play a central role in rebuilding. IDB Invest and the World Bank Group’s International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) aim to mobilize an estimated US$2.4 billion in private capital to complement public resources and preserve fiscal space.