Jamaica: Macro-Socio-Economic and Environmental Assessment of ...

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Based on information furnished by private entrepreneurs, the total impact of the hurricane on the sector amounts to $1590.7 million, or its equivalent of US$25.7 million. Of this, $466.3 million represent direct damage, and expected losses of revenue would amount to $1124.4 million. The impact on the external sector will be significant since most of the earnings of tourism are derived from foreign visitor expenditures. (See Table 3-4). Component Table 3-4 Estimated Impact of the Hurricane on the Tourism sector of Jamaica ($Million) Damage and losses Sector Total Damage Losses Public Private Effect on external sector Total 1,590.7 466.3 1,124.4 1,590.7 1,054 Infrastructure 466.3 Revenue loss 1,124.4 Source: Estimates made by ECLAC on the basis of preliminary private sector information. IV. INFRASTRUCTURE Infrastructure was one of the main areas that sustained significant direct damage caused by wind, rainfall and runoff from the hurricane. Destruction and damage to infrastructure, however, was minor compared to the indirect effects arising from the temporary absence of the services that the population draws from the infrastructure. The damages and losses sustained by electricity, water supply and telecommunications systems, and by the transport sectors, are described below. A word of caution is needed here. Contrary to the case of the social and productive sectors, information to evaluate damage and losses in the infrastructure sectors was not fully available at the time of the assessment. Some of the entities that provide some of these services were still facing the pressing needs of restoring their systems and facilities, and were thus unable to provide the information that was required. In addition, private enterprises in some sectors have engaged consultants to appraise their damage and losses with a view to submitting insurance claims, and were also unable to provide information that was in the process of being completed. Therefore, and contrary to what normally happens in other countries, the estimation of damage and losses in infrastructure presented herewith will be less comprehensive and will necessarily be of more limited accuracy than those of the sectors that have been described in the previous chapters. 1. Electricity and Water According to recent data, real GDP for the electricity and water subsector grew by 3.8 percent in the second quarter of 2004, in comparison with the corresponding period for the previous year. This was due to increased production of both electricity and water. Total 31
electricity generation rose in the quarter to 962.5 million KWh, and the production of water reached a total of 71240 megaliters. 6 The hurricane is expected to affect the sector’s performance for the third and fourth quarters. a) Electricity sector The Electricity sector has sustained damages and losses that, while small in comparison to other sectors, have a very significant impact on the functioning of the entire Jamaican economy. Power generation plants were not significantly affected. Just before the hurricane reached the island, power generation was suspended as a precautionary measure. The hurricane’s strong winds affected lower voltage transmission lines through the breaking of poles especially those made out of wood, as well as urban distribution grids. Electricity supply was interrupted throughout the island. The Jamaica Public Service Company Limited (JPSCo.), the private entity entrusted with the provision of electricity in the island, began efforts to restore the transmission and distribution service on a staged basis. Priority was assigned to the reconnection of essential public buildings such as hospitals and water purification, production and pumping plants. Depending on the availability of road access, JPSCo. began the process of replacing broken poles and restoring service. Thirty eight days after the disaster, there remained 5 percent of users still without service, especially those located in far away areas where roads were still inaccessible or under repair. (See figure 4-1). Figure 4-1 Recovery performance of electrical services after the hurricane 100 Service recovery, % 80 60 40 20 0 0 1 6 8 Days after the disaster 14 17 38 The JPSCo. is expected or will sustain a decline in revenues due to the interruption of the power supply. In the absence of detailed information, an attempt was made to estimate these losses and use was made of the average value of revenues in the past year 6 in combination with the information on service recovery performance described above. In addition, the utility company incurred unforeseen expenditures – including both overtime salary for employees as well as 32
Page 1 and 2: JAMAICA Macro-Socio-Economic and En
Page 3 and 4: I. INTRODUCTION The Meteorological
Page 5 and 6: Significant storm surges also impac
Page 7 and 8: Table 2: Comparison of Highest One-
Page 9 and 10: the total population or some 369 68
Page 11 and 12: unable to make the most of the stre
Page 13: The housing stock is relatively stu
Page 19 and 20: damage. Eight of the parishes had 3
Page 21 and 22: Table 2-6 Damage and losses sustain
Page 23 and 24: Table 2-9 Damage and Losses Sustain
Page 25 and 26: 8,000 persons will be out of work f
Page 27 and 28: It is estimated that the coffee pro
Page 29 and 30: each the processing plants and dome
Page 31: 4. Commerce sector The Food, Bevera
Page 35 and 36: critical facilities. The high sedim
Page 37 and 38: National Works Agency (NWA) and by
Page 39 and 40: 3. Telecommunications The Telecommu
Page 41 and 42: Erosion within the coastal zone of
Page 43 and 44: Portland Cottage experienced the mo
Page 45 and 46: Table 5-2 Summary of damages to the
Page 47 and 48: TABLE 5-1: Recovery Time and Cost E
Page 49 and 50: VI. SUMMARY OF OVERALL DAMAGE AND L
Page 51 and 52: 50 Based on the above information i
Page 53 and 54: 52 VII. MACROECONOMIC EFFECTS OF TH
Page 55 and 56: 54 2. Economic policy a) Fiscal pol
Page 57 and 58: 56 The performance of Agriculture (
Page 59 and 60: 58 bond loan, which caused a reduct
Page 61 and 62: 60 The performance of Manufacturing
Page 63 and 64: 62 Part of the wage-controlled grow
Page 65 and 66: 64 3.2 Prices, wages and employment
Page 67 and 68: 66 However the two most important i
Page 69 and 70: 68 likely as it stands the increase
Page 71 and 72: 70 also have an impact on employmen
Page 73 and 74: 72 accommodations will recover and
Page 75 and 76: 74 The rehabilitation programme foc

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