Gov’t creates NARA to lead multibillion-dollar Melissa recovery
Prime Minister Dr Andrew Holness has announced the establishment of the National Reconstruction and Resilience Authority (NARA), assessing that a fragmented approach by ministries will not meet the magnitude of Jamaica’s reconstruction challenge.
Preliminary figures from the World Bank indicate that the physical damage to the western end of the island in the wake of Hurricane Melissa stands at US$8.8 billion, or 41 per cent of gross domestic product (2024). The figure does not take into account economic loss.
Speaking at a press briefing on Wednesday, Holness said the statutory body is being established with special powers to lead, coordinate, fast-track and oversee national reconstruction. It will report directly to the Office of the Prime Minister.
“NARA will focus on building back better – safer homes, climate-resilient infrastructure, better land use and planning, relocation from high-risk zones, taking the opportunity to introduce new industries and new areas that previously had no economic base,” Holness said, noting that similar bodies have been previously set up.
Holness said NARA will be much larger in scope and established under special-purpose legislation through an act of Parliament.
He said the authority will be set up with a “sunset” date of five years and may be renewed by Parliament.
“So we’re not seeking to have this established forever. It is a time-bound exercise and it has to be time-bound, so that we can actually meet the recovery and reconstruction date. If you leave it unbounded, people will believe that they have forever to achieve the target,” said Holness.
He said the authority’s administrative expenses will be financed from the national Budget, but recovery and reconstruction activities will be financed initially from the National Natural Disaster Recovery Fund, which includes payments from the catastrophe bond.
World Bank Country Director Lilia Burunciuc noted that the economic cost of Hurricane Melissa is yet to be determined, but indicated that it is likely greater than the cost of the physical.
She said St Elizabeth, St James, and Westmoreland experienced the worst damage and account for US$5.5 billion, or 63 per cent of the total damage.
She said residential building damage accounts for US$3.7 billion (41 per cent of total estimated damage).
Burunciuc said non-residential buildings account for 20 per cent of total damage, or US$1.8 billion.
Infrastructure damage is estimated at US$2.9 billion, or 33 per cent of total damage, while agricultural damage is estimated at US$389 million.
“This is only physical damage. Economic damage from lost sales, lost tourism arrivals and so on are likely to be at the same level or even of higher magnitude … ,” she said, adding that the figures represent the current snapshot and is 90 per cent accurate.
“The total estimated damage exceeds any recent historical event. This means that the recovery will be an enormous and long-term task. It will require a well-coordinated, strategic approach to ensure speed, efficiency and transparency, and a whole-of-society approach from local institutions, the private sector and from communities,” said Burunciuc, who was also speaking at the briefing.
