Kingston, Jamaica: January 25, 2021
Minister of Finance and the Public Service, Dr the Hon. Nigel Clarke announced today 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. 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.
Jamaica’s subscription to CCRIF, forms part of the GOJ’s larger, multi-year framework developed to manage the financing of disaster risk.
Minister Clarke noted “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. 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.”
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 GOJ continues to work on Catastrophe Bond through the World Bank, the placement of which has been delayed due to the COVID-19 pandemic.
The CCRIF payout will be used primarily to cover the costs of repairs to the most damaged sections of our road network.