Jamaica is set to receive up to US$6.7 billion in international support over three years to drive recovery and reconstruction following the devastation caused by Hurricane Melissa. The comprehensive package, assembled at the request of Prime Minister Andrew Holness, involves the 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 coordinated effort combines emergency preparedness financing, sovereign funding, grant support, and private-sector investment, reflecting a shared commitment to a fiscally responsible, long-term recovery. Prime Minister Holness is expected to discuss implementation plans with the international financial institutions in an upcoming call.
Jamaica’s existing disaster risk financing framework allowed for rapid early response, ensuring an immediate inflow of US$662 million to address urgent needs. This included 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) from the World Bank Group’s Catastrophe Deferred Drawdown Option.
With Hurricane Melissa causing estimated damages of US$8.8 billion, long-term recovery will require substantial resources. A new financial support package of up to US$3.6 billion has been earmarked for Jamaica’s reconstruction program over the next three years. This includes up to US$1 billion from CAF, US$200 million from CDB, up to US$1 billion in sovereign financing from the IDB, up to US$415 million from the IMF’s Rapid Financing Instrument, and up to US$1 billion from the World Bank Group for budget support, partial risk guarantees, and critical sector investments.
Technical assistance and policy advisory services, funded by grants, will guide Jamaica’s recovery to ensure resilience and alignment with global best practices. So far, US$12 million in grants have been mobilized from IDB, WBG, and CAF.
Private investment will also play a key role in the recovery. IDB Invest and the World Bank Group’s IFC and MIGA are working to mobilize an initial US$2.4 billion in private capital to support reconstruction efforts, equally split between the IDB Group and WBG.
The collaboration underscores a shared commitment to building back better, leveraging international partnerships and private sector engagement to restore what was lost while strengthening Jamaica’s resilience to future disasters. By combining robust financial tools, technical guidance, and coordinated action, Jamaica is positioned to recover, rebuild, and emerge stronger for the future.
