December 04, 2025
Following Hurricane Melissa, and at the request of Jamaican Prime Minister Andrew Holness, 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) have jointly assembled a comprehensive package of up to US$6.7 billion over three years to support Jamaica’s recovery and reconstruction efforts.
This coordinated initiative reflects a unified commitment to help Jamaica pursue a fiscally responsible and sustainable recovery through a mix of emergency preparedness financing, sovereign financing, grant support, and private sector investments. The announcement comes ahead of discussions Prime Minister Holness will hold with representatives from the international financial institutions regarding implementation plans.
Rapid early response enabled by Jamaica’s planning
Jamaica’s strong disaster risk financing framework enabled a rapid mobilisation of funds to meet urgent needs. This framework supported an immediate inflow of critical liquidity to supplement the government’s own contingency resources, amounting to a total of US$662 million from the following sources:
- 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 World Bank Group Catastrophe Bond.
- US$300 million available from the IDB Contingent Credit Facility (CCF).
- US$42 million, scalable to US$84 million, available upon request under the World Bank Group Catastrophe Deferred Drawdown Option (Cat DDO).
Recovery needs and institutional support
With damages estimated at US$8.8 billion, recovery will require significant resources and long-term investment. Comprehensive planning is underway, with a focus on national priorities and strengthened resilience. CAF, CDB, IDB Group, IMF, and WBG are working closely with the Government of Jamaica and development partners in support of this process.
A new financial support package of up to US$3.6 billion may be made available over the next three years to help finance the government’s recovery and reconstruction programme. The proposed support includes:
- CAF: Up to US$1 billion for priority areas identified by the Government of Jamaica.
- CDB: Up to US$200 million for priority areas including resilient national and community infrastructure, as well as small business support.
- IDB: Up to US$1 billion in sovereign financing in areas where the institution’s expertise can create long-term impact.
- IMF: Jamaica has requested access under the large natural disaster window of the Rapid Financing Instrument (RFI), which could provide up to US$415 million.
- World Bank: Up to US$1 billion in sovereign financing, including budget support, partial risk guarantees, and investment projects in critical sectors.
Technical assistance and grant support
To ensure the recovery is effective, resilient, and aligned with international best practices, the five institutions are also providing technical assistance and policy advisory services funded by grants. A total of US$12 million in grant resources has already been mobilised from the IDB, the World Bank Group, and CAF, with additional support expected.
Mobilising private investment for resilience
Engaging private capital will be essential to scale recovery efforts while preserving fiscal space. Both the IDB Group and the World Bank Group have regional platforms designed to bring together public and private solutions from the start of the recovery process. IDB Invest, the World Bank Group’s International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA) are working to attract and mobilise an initial estimate of US$2.4 billion in private investment to support Jamaica’s recovery. This amount is expected to be shared evenly between the IDB Group and the World Bank Group.
A shared commitment to build forward better
CAF, CDB, IDB Group, IMF, and the World Bank Group remain committed to supporting a recovery that is inclusive, coordinated, and designed to enhance long-term resilience. By combining financial resources, technical guidance, and strong partnerships, Jamaica is well positioned to restore affected areas and strengthen its ability to withstand future disasters. Continued collaboration and innovation will remain central as the country works toward a stronger and more resilient future for its citizens.
Source: (Caribbean News Global)
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