Prime Minister Perry Christie said yesterday the estimate for the damage caused by Hurricane Matthew earlier this month is over half a billion dollars.

The government yesterday brought a resolution to Parliament to borrow up to $150 million to help cover the cost of relief efforts related to Matthew and Joaquin, which hit a year ago.

Speaking in the House of Assembly, Christie said Matthew caused "unmeasured personal loss" and great damage to government buildings, airport facilities and roads.

"In fact, we have a running debate between the financial secretary and myself," Christie said.

"He is projecting that the loss to the country; the combined loss of Matthew and Joaquin, would be some $800 million."

Christie said the Ministry of Finance has advised him that Joaquin, which decimated the central and southern islands last October, could cost up to $200 million.

Hurricane Matthew is estimated to have caused $500 million in damage, but could cost up to $600 million, Christie said.
The prime minister noted that the final damage assessments have not been completed.
Joaquin was originally pegged to have caused $100 million in damage.

Noting that the reconstruction efforts since Joaquin are ongoing, Christie explained that the Ministry of Works has awarded around $68 million in road and bridge repair contracts.

He said another $6.8 million in contracts is ready to be awarded, which would bring the cost of Joaquin to more than $70 million, without taking into account the cost of home repairs and reconstruction, repairs to seawalls, assisting the agricultural and fisheries industries, and recent tax reductions.

Matthew impacted The Bahamas between October 3-7, causing widespread destruction on several islands, including New Providence, Andros, Grand Bahama and the Berry Islands.

It remains unclear just how many people were impacted by the storm.

Addressing criticisms that the government did not prepare sufficiently for Matthew, Christie said the government was well prepared and took steps to protect The Bahamas.

To this end, he said, the government engaged financial experts to complete a study on the country's ability to finance the potential disaster prior to the storm.

He said the government made this decision so it would be in a position where it would not "panic over an issue of this kind".

According to the study, which has not been released to the public, "With a more structured compliance program, the revenue base could grow by 10 percent in the short term and up to 20 percent in the medium term of up to three to five years."

In addition to implementing an exigency order, suspending duty on items needed for rebuilding and restoration efforts, Christie said the government intends to "create some more efficient and effective ways to bring relief to our people".

As it relates to the bond issue, Christie said the Ministry of Finance designed a two tranche financing, a structured financing model - a tranche for commercial banks up to $120 million and a tranche for the public of $30 million.

He said the government accepted the Central Bank's recommendation that non-residents with a nexus to The Bahamas be allowed to participate in the offering.

The prime minister also said that all of the commercial banks the government approached for funding agreed to the mechanism for financing that the government presented to Parliament.

Complex issue
Christie said he visited residents who lost everything and was faced with the question of how these people "fit into this criteria of assistance".

During a tour of southern New Providence on Monday, Christie said that when Cabinet next met it would consider a special tax to help finance the restoration efforts associated with Matthew.

He said that, if implemented, it would be done in a way that has "minimal impact".

Yesterday, Christie backtracked from the suggestion, saying he made the comment in conversation with journalists.

But Christie said the reality is the government must take special steps to mitigate against the impact of hurricanes in the future given the "complexity of what we face".

"Looking at single mothers in New Providence, and you come across those who have lost their homes in the recession; acquired an apartment for themselves and the children; somehow borrowed additional money to furnish their apartments, and for Hurricane Matthew to take it from them, and they ask, 'Prime Minister, what do I do?'," Christie said.

"A mother with a son with stage four cancer, whose home has been taken from her, and all of the furniture and the furnishings taken from her because the water came up three or four feet high and [she asks], 'Prime Minister, what do I do?'"

Royston Jones Jr., Guardian Staff Reporter

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