By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

THE Bahamas has available back-up disaster funding worth $251m, the Prime Minister asserted yesterday, as he led debate on a Parliamentary resolution to permit the transfer of $17m in dormant account monies to further strengthen the nation’s resilience.

Speaking on a resolution to permit the Treasurer to transfer these monies from the Government’s consolidated fund to the national Disaster Emergency Fund , Philip Davis KC said the transfer marks a decisive step towards ensuring the Government has immediate access to critical funding when disasters such as hurricanes strike.

Mr Davis added that the Fund, when combined with existing financial instruments such as insurance coverage, pre-arranged credit lines and the Disaster Risk Management Authority’s (DRM) annual budget allocation, forms a comprehensive approach to disaster financing that enhances resilience and sustainability.

“The Government faces potential losses of up to $700m from major hurricane and flood events. That is the scale of damage the Government must be prepared to face from a disaster. 

“In response, the strategy recommends a layered approach: A blend of investments, insurance and reserves to diversify risk and reduce fiscal pressure,” said Mr Davis.

“There is the Caribbean Catastrophic Risk Insurance Facility valued at $50m. There is the national credit line valued at $150m and a contingent credit facility valued at $100m. There is risk reduction through the Disaster Prevention Fund for $6m, as well as DRM’s annual budget allocation of $60m. 

“And, of course, there is the $17m Disaster Emergency Fund, which this resolution addresses. For risk that exceeds these layers, loans and other ex-post instruments cover a total value of $251m. Each dollar has been allocated with a purpose. This comprehensive system ensures that every dollar invested strengthens our national capacity to anticipate, respond to, and recover from disasters.”

Mr Davis said the Fund must be maintained and used to finance disaster response, rehabilitation, recovery and financial protection instruments. The resources in dormant accounts will now be used to fund the country’s defence against natural disasters instead of “sitting idle”.

“The experts have determined that this Fund should hold a minimum of $17m to ensure adequate liquidity following a severe natural disaster. This resolution authorises the transfer of $17m from the dormant account proceeds held by the Treasurer, which are now part of the consolidated fund, into the Disaster Emergency Fund,” said Mr Davis.

“These dormant accounts are, essentially, unclaimed resources that can now serve a national purpose. Resources that were sitting idle can now be used to invest in our future and serve as the first line of defence when disaster strikes.”

Mr Davis said regulations and operating procedures are being developed to ensure the efficient management and investment of the Fund, providing clear guidance on how resources will be allocated, monitored and replenished.

He added that the framework will establish standards for transparency, governance and financial oversight to guarantee that every dollar in the Fund is used responsibly and effectively. 

The rules will also specify how the Fund’s resources can be invested during non-emergency periods to maintain liquidity while generating sustainable growth.

“Currently, regulations and operating procedures are being developed to ensure the efficient and effective management of these funds. 

“The regulations will clearly outline what the funds can be used for, how unused funds can be invested to grow the fund, what will activate their use and the appropriate steps that must be taken to ensure accountability,” said Mr Davis.

“These funds ensure that, when disaster strikes, the Government can mobilise immediate assistance without delays or dependence on external financing.”

Mr Davis said the Government faces potential losses of up to $700m from natural disasters, highlighting the scale of fiscal exposure the country must be prepared to manage.

He explained that, in recent years, the increasing frequency and intensity of hurricanes and flooding has demonstrated the urgent need for a structured financial framework to support national recovery and protect public finances from severe shocks.