Global Partners Mobilize $6.7B to Support Jamaica’s Post-Hurricane Recovery

Thanks to Jamaica’s strong disaster risk financing system, over $662 million was immediately mobilized to support emergency response efforts.

 

An unprecedented coalition of global development partners has pledged up to $6.7 billion over the next three years to support Jamaica’s recovery and resilience-building following the devastation of Hurricane Melissa. The financial package was assembled in response to a formal request from Prime Minister Andrew Holness and involves 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 aims to ensure a fiscally responsible, long-term recovery focused on restoring critical infrastructure, protecting vulnerable communities, and building a more resilient economy capable of withstanding future climate shocks. Implementation plans will be discussed during an upcoming high-level call between Prime Minister Holness and the heads of participating financial institutions.

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Fast Action Enabled by Jamaica’s Preparedness

Thanks to Jamaica’s strong disaster risk financing system, over $662 million was immediately mobilized to support emergency response efforts. This included:

• $37M from Jamaica’s Contingency and Disaster Reserve Funds

• $91M from the Caribbean Catastrophe Risk Insurance Facility (CCRIF)

• $150M triggered from the World Bank catastrophe bond

• $300M from the IDB’s Contingent Credit Facility

• $42M, expandable to $84M, under the World Bank Catastrophe Drawdown Option (Cat-DDO)

These early funds helped restore power, provide temporary shelter, repair damaged roads, and support social assistance programs for affected families.

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Long-Term Recovery Financing

With damage estimates reaching $8.8 billion, Jamaica’s reconstruction will require sustained investment. A new package of up to $3.6 billion will support national rebuilding priorities, including resilient housing, transportation infrastructure, climate-smart energy systems, and disaster-resistant public facilities.

Breakdown of the sovereign financing package:

• CAF: up to $1B for government-identified priorities

• CDB: up to $200M for resilient infrastructure and small business support

• IDB Group: up to $1B in sovereign financing

• IMF: access to up to $415M via the Rapid Financing Instrument disaster window

• World Bank Group: up to $1B, including budget support, sectoral investments, and guarantees

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Technical Expertise, Grants, and Innovation Support

To ensure recovery aligns with global best practices, the partners have mobilized $12 million in grants for technical assistance, policy guidance, and institutional capacity building. Additional grant support is expected through climate and resilience funds.

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Mobilizing Private Capital for Resilient Growth

Private-sector investment will play a crucial role in scaling Jamaica’s reconstruction. The IDB Group and the World Bank Group’s private-sector arms — IDB Invest, IFC, and MIGA — are preparing mechanisms to attract at least $2.4 billion in private investment, targeting:

• Renewable energy

• Climate-resilient housing

• Telecommunications and digital infrastructure

• Tourism revival

• Transportation and logistics

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A Shared Vision: Build Back Better

All participating institutions emphasized that Jamaica’s recovery will not only rebuild damaged infrastructure but also catalyze future climate resilience, social protection, economic diversification, and disaster-preparedness modernization.

A joint statement underscored the collective mission:

“This partnership is built on shared responsibility. Together, we are helping Jamaica build forward better — stronger, safer, and more climate-resilient.”

With substantial financing, strong governance, and global support, Jamaica is positioned to emerge from this crisis stronger and better prepared for a climate-impacted future.