Multilateral financing institutions (MFIs) accounted for more than half of Jamaica’s Official Development Assistance (ODA) in 2025, as development financing rebounded sharply to support disaster resilience and recovery efforts after Hurricane Melissa.

According to data in the Planning Institute of Jamaica’s Economic and Social Survey Jamaica, new and ongoing development projects financed through ODA and Government counterpart funding totalled US$2.1 billion ($335.6 billion) during the year. International development partners accounted for US$1.8 billion ($287.7 billion) with multilateral financing institutions supplying the largest share.

“MFIs emerged as the largest providers at 57.2 per cent, while bilateral partners accounted for 39.3 per cent; Multilateral Technical Cooperation (MTC) agencies, 1.7 per cent; multi-donor funds, 1.2 per cent; and environment and climate change partners, 0.7 per cent,” the report noted.

ODA refers to concessional loans, grants and technical assistance provided to developing countries to promote economic development and welfare. Jamaica’s principal multilateral partners include the Inter-American Development Bank (IDB), Caribbean Development Bank (CDB), World Bank and the European Union (EU).

Multilateral technical cooperation (MTC) agencies include partners that provide technical assistance and grants such as United Nations agencies, the International Atomic Energy Agency (IAEA), the Commonwealth Secretariat and the Organisation of American States (OAS).

Of the total funds to Jamaica last year, loans continued to dominate development financing, accounting for US$1.3 billion of total ODA, while grants amounted to US$553.6 million. Actual disbursements during the year reached US$320.6 million or $51.2 billion.

The IDB remained Jamaica’s largest development partner, with a cooperation programme valued at US$585.8 million ($93.6 billion). It was followed by the People’s Republic of China with US$413.9 million ($66.2 billion) and the World Bank with US$309 million ($49.4 billion).

The survey attributed the IDB’s expanded portfolio primarily to a new US$400-million Contingent Loan for Natural Disasters and Public Health Emergencies.

“The IDB’s total financing registered an increase of US$333.4 million due primarily to a new contingent loan… developed to alleviate the impact of a severe or catastrophic natural disaster or public health event on the country’s public finances,” the report said.

The World Bank’s portfolio expanded to six loan-funded projects valued at US$309 million, representing a 46 per cent increase over 2024. Growth was primarily driven by the approval of the Sustainable and Resilient Recovery Development Policy Financing and a Catastrophe Deferred Drawdown Option, both activated after the Category 5 hurricane.

The CDB maintained a portfolio of five projects worth US$65 million or $10.4 billion. Its loan financing of US$56.2 million supported economic infrastructure and the productive sector, while grants were directed to social development programmes.

The report also noted that the EU supported 35 grant-funded programmes valued at €83.3 million ($15 billion), with almost half directed to the administrative sector. Following Hurricane Melissa, the EU provided an additional $449.8 million in humanitarian assistance for transport, logistics and relief supplies.

The annual document in highlighting a sharp rebound in new development financing during the year, said these funds climbed to US$721.0 million or approximately $115.2 billion, up from US$87.0 million or $13.9 billion a year earlier. Loan approvals totalled US$592 million, while newly approved grants reached US$129 million, reflecting increased financing from the IDB and the World Bank.

“The sharp increase to US$721.0 million represented loan financing secured from MFIs to advance the country’s disaster risk financing strategy… as well as new grants in the wake of Hurricane Melissa,” the report said.

Although new ODA commitments declined between 2021 and 2024 because of prudent debt management and constrained grant funding, the report said 2025 marked a decisive turnaround as development partners mobilised emergency financing following the hurricane.

“IDPs provided grants totalling US$67.6 million ($10.8 billion) to support emergency response and relief efforts,” the report added.