MELISSA LEAVES BILLIONS IN DAMAGE ACROSS JAMAICA

Photo shows devastation in the Parish of St. Elizabeth

Jamaica is reeling from the catastrophic impact of Hurricane Melissa, which has left a trail of devastation across the island, with recovery costs expected to run into the billions of dollars.

The storm made landfall along the southwestern coast between Manchester and St. Elizabeth before exiting between Trelawny and St. Ann on the northwestern side. However, Melissa’s massive reach caused widespread destruction far beyond its entry and exit points, severely affecting northeastern parishes such as St. Mary and south-central regions including Clarendon.

Emergency crew clearing a roadway which was blocked by a fallen tree

A resident of St. James told NewslineTCI that Melissa was significantly more destructive than Hurricane Gilbert, the Category 3 hurricane that ravaged Jamaica in 1988 and left parts of the country without electricity for more than six months.

“It is total destruction,” the resident said. “Gilbert was a baby to this storm.”

Hospitals in western Jamaica suffered heavy structural damage, while downed power lines, collapsed utility poles, widespread flooding, and major landslides crippled infrastructure. Publicly shared images show vehicles washed away by raging floodwaters and entire hillsides collapsing. Communications across the island remain unstable.

An amateur photographer captured the intensity of the wind

The government is set to receive J$24 billion (US$150 million) from its catastrophe bond, the first time the World Bank–facilitated parametric insurance instrument has been triggered, providing critical support as the country faces billions in recovery costs.

Disaster analyst Chuck Watson of Enki Research estimates total damage between US$5 billion and US$16 billion. Watson, who previously contributed to an OAS disaster-mitigation initiative in the region and to Jamaica’s hurricane-damage mapping, told Bloomberg that Melissa represents a worst-case scenario.

“Hurricane Melissa is just about the worst scenario you can imagine,” he said, noting that Hurricane Gilbert caused an estimated US$7 billion in losses. “Melissa will probably cause twice that.”

This photo shows the driver of a utility vehicle about to exit his vehicle before it was swept away by raging floodwaters.

International catastrophe-risk service Artemis reported Monday that Jamaica’s parametric catastrophe bond and other risk-transfer instruments are likely to provide significant financial relief.

“Given the intensity of Hurricane Melissa, it still appears that Jamaica’s US$150-million 2024 parametric World Bank catastrophe bond could be triggered and a payout come due to the nation to aid in its recovery,” the outlet stated.

Investors in the bond, already trading at steep discounts as Melissa approached, now face substantial losses, a known risk within the catastrophe-bond market.

“Based on current models, there is a high chance that there will be at least a partial payout,” said Florian Steiger, CEO of Switzerland-based Icosa Investments AG. “These funds will be put to good use and can make a huge difference to the people of Jamaica.”

However, ongoing corruption allegations involving the Andrew Holness Administration have fueled calls from diaspora members, including online commentators, demanding strict international oversight of how recovery funds are spent.

Holness’ former Minister of Education is currently before the courts on charges of financial misconduct involving millions of dollars. Meanwhile, Health Minister Christopher Tufton was recently cleared by the Integrity Commission regarding a multimillion-dollar public-relations contract awarded to a company whose owner he has been accused of having a close relationship with. The report said Tufton ‘indirectly influenced’ the awarding of the contract.

The administration has also been criticized for a massive cost overrun at the Cornwall Regional Hospital in Montego Bay. The original repair estimate was J$3.4 billion; costs have since ballooned to J$21 billion.

Additionally, the Prime Minister has yet to be certified by the Integrity Commission, which has cited indications of illicit enrichment that he has allegedly failed to satisfactorily explain. The matter is now before the Supreme Court.

Holness is seeking to have portions of an affidavit from the Commission’s Director of Information struck out on the grounds that it is scandalous, irrelevant, and an abuse of process. The court, however, dismissed the application, and the matter remains ongoing.