When Hurricane Melissa struck Jamaica on October 28, the country faced significant destruction from heavy rain, landslides, and winds exceeding 252 miles per hour. Despite the scale of damage, Jamaican authorities were able to respond immediately, having financial resources in place before the disaster.
The government announced access to up to US $1.5 billion through a combination of savings, credit lines, and insurance payouts. This preparedness was the result of long-term investment and collaboration with the World Bank.
Over the past ten years, Jamaica worked closely with the World Bank to develop fiscal buffers and specialized financial instruments for disaster response. These systems were activated after Hurricane Melissa made landfall.
Within days, the Caribbean Catastrophe Risk Insurance Facility (CCRIF), which received initial support from the World Bank, provided a record payout of US$70.8 million on Jamaica’s cyclone policy. A second payment of US$21.1 million for rainfall followed soon after. The combined total reached nearly US$92 million—the largest payout in CCRIF history—helping meet immediate recovery needs while broader assessments continued.
Jamaica also benefited from a US$150 million catastrophe bond arranged by the World Bank Treasury and renewed in 2024; this bond paid out in full with funds disbursed on December 1.
In addition to these mechanisms, Jamaica accessed its Catastrophe Deferred Drawdown Option (Cat DDO), a pre-arranged credit line providing up to US$84 million for emergency response and early recovery.
All World Bank projects in Jamaica include Contingent Emergency Response Components (CERCs), allowing project funds to be quickly redirected toward emergency response when needed.
These measures enabled one of the fastest financial responses seen after a major hurricane in the region.
Beyond finance, Jamaica has invested in resilience through infrastructure improvements supported by World Bank initiatives such as the Disaster Vulnerability Reduction Project (DVRP). The DVRP has strengthened key infrastructure like coastal defenses and drainage systems across the island. When Hurricane Melissa hit, facilities upgraded under this project played critical roles—for example, Montego Bay Fire Station coordinated emergency operations over long distances while improved drainage protected flood-prone communities like Old Harbour.
A resident from Old Harbour shared: “The people of Old Harbour were spared from the deluge of the Big Pond. You had a vision and saw it through. On behalf of my too many relatives, a big thank you.”
Future projects will continue this work. The Kingston Waterfront Improvement (KIWI) Project aims to integrate climate adaptation features into urban development by designing parks and community spaces that improve resilience against storms.
"With KIWI, we are building resilience into the heart of the city. The series of projects integrate nature-based solutions, improved drainage, and coastal protection features so that communities and businesses are better prepared for future storms," said Rafeef Abdelrazek, Senior Urban Development Specialist and Co-Task Team Leader for KIWI.
“Jamaica's experience underscores why financial and physical preparedness matters,” said Lilia Burunciuc, World Bank Division Director for the Caribbean. “Jamaica’s ability to mobilize resources within hours of the hurricane is a result of years of partnership paying off. Our task now is to build on that foundation so every country in the region can respond this fast when the next storm comes.”
As reconstruction efforts begin, new tools—including potential emergency financing options and access to international loss-and-damage funds—are expected to strengthen Jamaica’s safety net further.
The World Bank supports similar climate resilience initiatives globally through its financing programs, technical knowledge sharing efforts with developing nations worldwide, as well as partnerships with governments like Jamaica’s.