Jamaica gets trillion-dollar aid package to rebuild after Hurricane Melissa

Five major international financial institutions have assembled a US$6.7 billion package, just over J$1 trillion, to support Jamaica’s recovery and reconstruction following Hurricane Melissa.

The support, which will be over three years, was announced on Monday.

The institutions involved are the Development Bank of Latin America and the Caribbean (CAF), 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 World Bank, in coordination with the IDB, estimates that Hurricane Melissa caused US$8.8 billion (about J$1.42 trillion) in physical damage to Jamaica. That's equivalent to 41 percent of the country’s 2024 GDP, making it the costliest hurricane in the nation’s recorded history.

The newly announced support package combines emergency financing, sovereign loans (funds borrowed by a country's government from other countries, international organisations or private institutions), grant support, and private sector investment.

"This coordinated effort reflects a unified commitment to help Jamaica pursue a fiscally responsible, long-term recovery," said a joint statement on Monday.

It said the package follows a request from Prime Minister Dr Andrew Holness. The announcement comes ahead of a call that Holmess will hold with representatives from the international financial institutions to discuss implementation plans.

The institutions said Jamaica’s "robust disaster risk financing framework" enabled a rapid flow of funds to meet urgent response needs.

Hurricane Melissa struck Jamaica on October 28 as a category 5 storm, the strongest to hit the island, killing at least 45 persons and devastating western Jamaica.

Holness has announced that a body, the National Reconstruction and Resilience Authority, will be established under law to lead the reconstruction.

FULL STATMENT (December 1):

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 strengthen Jamaica’s recovery and reconstruction efforts.

This coordinated effort reflects a unified commitment to help Jamaica pursue a fiscally responsible, long-term recovery through a combination of emergency preparedness financing, sovereign financing, grant support and private sector investments. The announcement comes ahead of the call Prime Minister Holness will hold with representatives from the international financial institutions to discuss implementation plans.

Rapid Early Response Enabled by Jamaica’s Planning

Jamaica’s robust disaster risk financing framework enabled a rapid flow of funds to meet urgent response needs. This framework facilitated an immediate inflow of critical liquidity to supplement the Government’s own contingency resources, for a total of US$662 million as follows:

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 WBG Catastrophe Bond.

US$300 million available from the IDB’s Contingent Credit Facility (CCF).

US$42 million (scalable to US$84 million) available upon request under the World Bank Group’s 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 investments. Comprehensive recovery planning is already underway, focusing on critical priorities and reinforcing Jamaica’s resilience. CAF, CDB, IDB Group, IMF and WBG are working closely with the Government of Jamaica and other partners to support this process.

To that end, a new financial support package of up to US$3.6 billion could be made available to finance the Government’s recovery and reconstruction program over the next three years, comprising:

CAF: up to US$1 billion for priority areas identified by the Government of Jamaica.

CDB: up to US$200 million in financing in priority areas identified by the Government, including resilient national and community infrastructure, and small business support.

IDB: up to US$1 billion in sovereign financing in priority areas where its technical expertise and long-standing engagement can have sustained impact.

IMF: Jamaica has requested access under the large natural disaster window of the Rapid Financing Instrument (RFI) which could amount to a loan of 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 Jamaica’s recovery is effective, resilient, and informed by global best practices, the five institutions are also providing technical assistance and policy advisory services —funded by grants—that draw on global experience and best practices in disaster response. So far, US$12 million in grants has already been mobilized from the IDB, the WBG and CAF, with more to come.

Mobilizing Private Investment for Resilience

Engaging private capital will be essential not only to scale up recovery efforts, but also to preserve fiscal space. The IDB Group’s and World Bank Group’s regional platforms are designed to blend public and private solutions from the outset. Together, IDB Invest and the World Bank Group’s International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) are actively working to attract and mobilize an initial estimate of US$2.4 billion in private investment to support Jamaica’s recovery and reconstruction—split equally between the IDB Group and the World Bank Group.

A Shared Commitment to Build Forward Better

The World Bank Group, CAF, CDB, IDB Group, and IMF remain committed to ensuring that Jamaica's recovery is grounded in a comprehensive and collaborative approach that leverages both international partnership and private sector engagement. By combining robust financial instruments, technical guidance, and a shared commitment to building forward better, Jamaica is well-positioned not only to restore what was lost but also to strengthen its resilience to future disasters. Continued partnership and innovation will remain central as Jamaica charts a stronger, more resilient future for all its citizens.

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