Holness welcomes multilateral support package of up to US$6.7 billion to boost Jamaica’s recovery and reconstruction

Jamaica Gleaner | 2025-12-01 | Original Article

Prime Minister Dr Andrew Holness has welcomed the announcement of a major recovery and reconstruction package of up to US$6.7 billion from Jamaica’s international development partners, following the widespread devastation caused by Hurricane Melissa.

 

The package, assembled by CAF-Development Bank of Latin America and the Caribbean, the Caribbean Development Bank (CDB), the Inter-American Development Bank Group (IDB), the International Monetary Fund (IMF), and the World Bank Group (WBG), includes emergency response financing, sovereign loans, grants, and private sector investments over the next three years.

 

Holness expressed appreciation for this demonstration of international partnership, noting, “This coordinated support will allow Jamaica to recover stronger, rebuild smarter, and accelerate relief to our people. Jamaica has a strong recovery plan, and the commitment of these institutions to stand with us at this critical moment will significantly advance and expedite our recovery.”

 

The announcement precedes a high-level call Holness will hold with representatives from the international financial institutions to discuss implementation of the package.

 

Jamaica’s strong disaster risk financing framework enabled an immediate flow of liquidity to address urgent response needs.

 

Combined with the Government’s own contingency resources, the country secured US$662 million shortly after the hurricane, comprising: 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 triggered from the WBG Catastrophe Bond; US$300 million accessible from the IDB’s Contingent Credit Facility (CCF); and US$42 million, scalable to US$84 million, available upon request under the WBG Catastrophe Deferred Drawdown Option (Cat DDO).

 

The Prime Minister noted that this rapid financing underscores the value of Jamaica’s proactive approach to disaster planning and fiscal responsibility.

 

To address estimated damages of US$8.8 billion, multilateral partners have indicated the availability of up to US$3.6 billion in sovereign and emergency financing over the next three years: CAF - up to US$1 billion for Government-identified priority areas; CDB - up to US$200 million for resilient national and community infrastructure and small business support; IDB Group - up to US$1 billion in sovereign financing aligned to areas where the IDB has strong technical expertise; IMF - Jamaica has requested support under the natural disaster window of the Rapid Financing Instrument (RFI), which could provide up to US$415 million, and World Bank Group - up to US$1billion in sovereign financing, including budget support, guarantees, and investments in priority sectors.

 

The institutions are also providing extensive technical assistance, policy advisory support, and grant funding to ensure Jamaica’s recovery is well-coordinated and grounded in global best practices.

 

To date, US$12 million in grants has already been mobilised from the IDB, WBG, and CAF, with additional support expected.

 

Furthermore, the IDB Group and the World Bank Group are working to mobilise approximately US$2.4 billion in private investment to support resilient rebuilding, critical infrastructure, and private-sector-led recovery initiatives.

 

The Government of Jamaica has extended its gratitude to its international partners for standing firmly with the Jamaican people during this time and supporting the country’s journey toward a stronger, more resilient future.

 

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