As the hurricane season officially commences, St. Vincent and the Grenadines has proactively set aside EC$120 million (One EC dollar=US$0.37 cents) to bolster its response capabilities in the event of a tropical cyclone, announced Prime Minister Dr. Ralph Gonsalves.
Speaking on the state-owned NBC Radio, Dr. Gonsalves emphasized the government’s consistent effort to prepare for such eventualities. “I always try for us to put aside some money,” he stated, while urging residents to finalize their hurricane preparations.
The Prime Minister detailed the funding mechanisms, noting the Contingency Fund, which receives one percentage point of the 16 percent value-added tax (VAT) and is governed by special laws for its expenditure.
“We have dipped into the fund because we have the disasters. We have had COVID, Hurricane Elsa, the volcanic eruptions, Hurricane Beryl and so forth,” Gonsalves explained, highlighting past uses of the fund. “I always try to see if we could have about EC$120 million put aside,” he added, specifying that this includes EC$50 million within the Contingency Fund.
Further bolstering the financial readiness, Dr. Gonsalves revealed the utilization of the Catastrophe Deferred Drawdown Option (Cat DDO) with the World Bank. “We use the instrument called the Catastrophe Deferred Drawdown Option at the World Bank. We have arranged, again, such a drawdown. We negotiate that in order to put that aside,” he said. This Cat DDO represents a loan of US$20 million (EC$54 million) accessible upon a natural hazard impact, with a repayment period of 45 years.
“We had to pass a number of laws, do a number of regulations to fit with the World Bank requisites. So, 50 from the Consolidated Fund, 54 from the Cat DDO, that’s 104. So, you see, almost reach 120. Then we will get a five million US dollar to borrow — that is EC$13.5 million — easy from the Caribbean Development Bank,” Gonsalves elaborated on the comprehensive financial strategy.
He further noted that with the Barbados-based Caribbean Development Bank (CDB), the country typically secures a loan after having spent money in response to a natural disaster. “But you know you have that for certain. So, you could always bridge it until you get that money. And then, a reliable friend like Taiwan will chip in with three, four, five million US, depending on the circumstances,” the Prime Minister stated.
Gonsalves differentiated these substantial preparations from smaller, more immediate aid. “I’m not talking about small amount of monies — a $200,000, a $50,000, which this or that agency or government may give when a disaster happens. Those monies, you hear about them, but they could hardly take care of the relief, much less any recovery.”
Recalling the significant impact of last year’s Hurricane Beryl, Dr. Gonsalves mentioned that the storm, which primarily affected the Southern Grenadines on July 1, left “a number close to one billion Eastern Caribbean dollars” in loss and damage.
In terms of physical preparedness, Prime Minister Gonsalves confirmed that the government has inspected emergency shelters. “We have 140 shelters listed for the 2025 season. And while we have a reduced number, it doesn’t mean that there would not be enough places for persons to go to,” he assured, following meetings with the director of the National Emergency Management Organisation (NEMO), Michelle Forbes, and the permanent secretary.
NEMO’s preparations for the hurricane season include extensive training in logistics, warehouse management, shelter management, forklift operation, and disaster planning with hoteliers and private sector organizations.
Regarding post-disaster recovery efforts, Gonsalves stated that houses repaired or rebuilt by his government are “generally speaking, in a much better condition than they would have been before.” However, he acknowledged receiving “some complaints that some of the contractors have short-changed in some of the repairs and some of it is not of the quality which we should have had. And that is a matter which I’ve raised with the Ministry of Housing, and they’re doing their double checks and their supervisions and the like to try and improve,” Gonsalves concluded.
