Wed | Jun 29, 2022

Jamaica gets $500M Tropical Cyclone Zeta/Eta payout from CCRIF policy

Published:Tuesday | January 26, 2021 | 8:51 AM
Finance Minister Nigel Clarke (file photo)

Finance Minister Nigel Clarke has announced that the Government of Jamaica (GOJ) received a payment of J$500 Million in December 2020 in respect of the GOJ’s 2020/21 Excess Rainfall policy, held with the Caribbean Catastrophe Risk Insurance Facility (CCRIF) Segregated Portfolio Company. 

Clarke said the  payout was related to the intense and persistent rainfall associated with Tropical Cyclones Zeta and Eta, in October and November respectively, which caused loss of lives and significant damage, particularly to the country’s road network.

Clarke said the CCRIF payout will be used primarily to cover the costs of repairs to the most damaged sections of our road network.

“We know from experience of Jamaica’s susceptibility to natural disaster events including flooding, and the significant damage it can cause to our infrastructure, which is why we have implemented a multi-layer strategy with a menu of financial instruments to manage the financing of disaster risk," Clarke said in a statement.

He continued: "As we continue to simultaneously respond to the COVID-19 pandemic, this payout, and certainly our participation in CCRIF generally, as well as other similar facilities, reduces the need for the shifting of fiscal resources from other priority areas to respond to disasters.”

The Minister said the country's subscription to CCRIF, forms part of the government's larger, multi-year framework developed to manage the financing of disaster risk.

Clarke noted that other elements of the GOJ’s Disaster Risk Financing Framework include a Contingency Credit Facility with the IDB and the capitalising of our own Contingencies Fund.

The release stated that the Government continues to work on Catastrophe Bond through the World Bank, the placement of which has been delayed due to the COVID-19 pandemic.

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