Jamaica Secures Multi-Billion-Dollar Aid Package

WASHINGTON, DC – Jamaica has secured a comprehensive package of up to US$6.7 billion over a three-year period to strengthen the country’s recovery and reconstruction efforts following the passage of Hurricane Melissa in October.

Hurricane Melissa slammed into Jamaica on October 28, leaving 45 people dead and damage estimated at nine billion US dollars.In a statement on Monday, the World Bank said Monday that at the request of Jamaican Prime Minister Andrew Holness, the Development Bank of Latin America and the Caribbean (CAF), the Caribbean Development Bank (CDB), the Inter-American Development Bank Group (IDB Group), the International Monetary Fund (IMF), and the World Bank Group (WBG) have jointly assembled a comprehensive package for the island.

It said that this coordinated effort reflects a unified commitment to help Jamaica pursue a fiscally responsible, long-term recovery through a combination of emergency preparedness financing, sovereign financing, grant support and private sector investments.

The announcement by the banks come as Prime Minister Holness is due to hold meet with representatives from the international financial institutions to discuss implementation plans.

According to the World Bank, Jamaica’s robust disaster risk financing framework enabled a rapid flow of funds to meet urgent response needs.

It said that this framework facilitated an immediate inflow of critical liquidity to supplement the government’s own contingency resources, for a total of US$662 million, with US$37 million from the government of Jamaica’s Contingency Fund and National Natural Disaster Reserve Fund, US$91 million from the Caribbean Catastrophe Risk Insurance Facility (CCRIF), US$150 million from the WBG Catastrophe Bond, US$300 million available from the IDB’s Contingent Credit Facility (CCF). and US$42 million, scalable to US$84 million available upon request under the World Bank Group’s Catastrophe Deferred Drawdown Option.

The statement said that under the recovery needs and institutional support, 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. CAF, CDB, IDB Group, IMF and WBG are working closely with the Government of Jamaica and other partners to support this process.”

It said 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 programme over the next three years, comprising up to one billion US dollars from CAF for priority areas identified by the government.

In addition, the CDB will provide up  to US$200 million in financing in priority areas also identified by the government, including resilient national and community infrastructure, and small business support, while the IDB will provide up to one billion US dollars in sovereign financing in priority areas where its technical expertise and long-standing engagement can have sustained impact.

Jamaica has requested from the IMF, access under the large natural disaster window of the Rapid Financing Instrument (RFI) which could amount to a loan of up to US$415 million,  while  the World Bank is providing up to one billion US dollars in sovereign financing, including budget support, partial risk guarantees and investment projects in critical sectors.

“To ensure Jamaica’s recovery is effective, resilient, and informed by global best practices, the five institutions are also providing technical assistance and policy advisory services, funded by grants, that draw on global experience and best practices in disaster response. So far, US$12 million in grants has already been mobilized from the IDB, the WBG and CAF, with more to come,” the statement noted.

It said that engaging private capital will be essential not only to scale up recovery efforts, but also to preserve fiscal space.

The IDB Group’s and World Bank Group’s regional platforms are designed to blend public and private solutions from the outset.

“Together, IDB Invest and the World Bank Group’s International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) are actively working to attract and mobilize an initial estimate of US$2.4 billion in private investment to support Jamaica’s recovery and reconstruction—split equally between the IDB Group and the World Bank Group.”

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.

The statement said that 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.

It said continued partnership and innovation will remain central as Jamaica charts a stronger, more resilient future for all its citizens.