Jamaica has received a historic aid package that should go a long way in rebuilding after Hurricane Melissa.

So five international financial institutions have put together a US$6.7 billion aid package for Jamaica, to help the country rebuild after Hurricane Melissa. 

That’s well over 1 trillion Jamaican dollars.  It would cover about 75% of the World Bank’s damage estimate.

It’s a major win for the country in securing the funds needed to rebuild.  And it’s also a MASSIVE international show of confidence in the country’s recovery.

The package pulls together support from the Development Bank of Latin America and the Caribbean (CAF), the Caribbean Development Bank, the Inter-American Development Bank, the International Monetary Fund, and the World Bank. 

It includes sovereign financing, which is access to loans, bonds, etc, grants and private investment that will be disbursed over three years. 

CAF is offering up to US$1 billion for priority projects chosen by the Government. US$200 million from the Caribbean Development Bank will focus on building climate-resilient infrastructure and support for small businesses. 

The IDB Group is lining up as much as US$1 billion in sovereign loans. The IMF could provide up to US$415 million through its Rapid Financing Instrument.  And the World Bank Group is matching CAF and the IDB with up to US$1 billion, combining budget support, guarantees and investment projects in key sectors. 

All of this is on top of the US$662 million that Jamaica has already secured from its own disaster-risk financing tools.  That includes payouts from the Caribbean Catastrophe Risk Insurance Facility, the catastrophe bond, an IDB contingent credit line, and the World Bank’s Catastrophe Deferred Drawdown Option.

Then there’s another US$12 million in grants the agencies have mobilised so far, along with promises of technical support to help design projects and strengthen institutions.

So, all in all, money a run. It should genuinely help Jamaica recover from this devastating storm. But it also brings up another issue that was already simmering – transparency.

There’ve been growing calls for the Government to clearly show how relief funds are being spent and where the money is going. 

The Auditor General has launched a real-time audit to track how funds and supplies are received and used.  But the Opposition is insisting that the system be fully transparent and has warned against vague assurances.

On the bright side, with these big international agencies now involved, there’s an added layer of accountability. They require paperwork for everything.  US$6.7 billion is a lot of money for any one country, even spread over three years, so you can bet they’ll be watching every cent.

All eyes will be on the Government and the recovery efforts.

And that’s the bottom line.