A woman surveys the damage wrought by Hurricane Ivan to a house in Caribbean Terrace, Harbour View. - Rudolph Brown/Chief Photographer

Government is paying out $25.5 million to homeowners at Caribbean Terrace in eastern St. Andrew who lost their property when Hurricane Ivan devastated at least 17 houses in 2004.

Information Minister Colin Campbell said the Government will be acquiring the 17 homes that were extensively damaged, paying out $1.5 million each to the property owners.

He said the National Environment and Planning Agency has recommended the adoption and maintenance of a development setback of 50 metres from the high water mark in the region of the coastline.

Speaking on Monday at the weekly post-Cabinet press briefing at Jamaica House, Mr. Campbell said the acquisition of the homes would provide the space for the setback and the creation of a buffer zone.

A comprehensive river training and dredging of the lower section of Hope River will also be carried out.