Montserrat Adds New Rainfall Protection Under Regional Risk Insurance Facility

Montserrat now has increased coverage under the Caribbean Catastrophic Risk Insurance Facility (CCRIF).

The CCRIF is the entity which recently made payouts to Jamaica totalling US$91.9 million (J$14.8 billion) following the devastation caused by Hurricane Melissa.

Premier and Minister for Finance, Reuben T. Meade confirmed that the government has expanded the products purchased from that facility to add protection for excessive rainfall, in addition to the coverage provided for tropical cyclones.

He says these funds will be within the remit of the government to utilize in post-disaster recovery.

In addition, the premier said that there are mechanisms within the government and legislation that allows for the re-prioritization of resources in event of a disaster or emergency.

He added that currently there is no need to establish a dedicated disaster relief and recovery fund in a time where resources must be allocated to ensure the many critical needs are met and effective service delivery across the government is ensured.

With respect to access to climate change funds, he noted that due to Montserrat’s status, most international financing options are not available, but the island fully participates in any international funding training that is made available through the Caribbean Community (CARICOM), Organization of Eastern Caribbean States (OECS), the Caribbean Regional Technical Assistance Centre (CARTAC), the Caribbean Development Bank (CDB), the Eastern Caribbean Central Bank (ECCB), and any other regional partners.

Premier Meade says it should also be noted that while grants geared towards climate adaptation exist, most of the financing mechanisms offered are geared towards debt, such as the contingent credit lines, catastrophe bonds or Cat Bonds, and Catastrophic Deferred Draw Down Option which are heavily conditional.

He says this is not an option that Montserrat is currently pursuing. The government has implemented a Green Energy Transition Project, in its pursuit of climate resilient infrastructure.

The project is completely grant funded through the UK and is a result of the efforts by the government to ensure that the island’s infrastructure, is both climate resilient and sustainable.