Gov’t and World Bank Sign US$20Mn SPIRO Project Loan Agreement

• The government entered a US$20Mn loan agreement with the World Bank, for the Social Protection for Increased Resilience and Opportunities (SPIRO) Project. This initiative seeks to enhance social protection coverage in Jamaica by creating a national unemployment insurance program and fortifying the social protection delivery system.
• The government and the World Bank made a $20Mn deal for the SPIRO Project in Jamaica, aiming to improve social protection by setting up an unemployment insurance program and strengthening delivery systems.
• In his remarks during the SPIRO Visibility Ceremony, Minister of Finance, Dr. the Hon. Nigel Clarke emphasised that Jamaica must create an unemployment insurance plan. Dr Clarke cited the COVID-19 crisis and job losses as reasons. He noted that such a scheme would enhance social stability by offering support during economic downturns caused by unemployment.
• Lilia Burunciuc, the World Bank Country Director, stated that SPIRO will drive significant changes in Jamaica's social protection system, includes five parts and will run until January 2030.
• Component 1: Creating unemployment insurance in Jamaica, costing approximately US$1.34Mn, to build resilience. Component 2: Investing US$8.75Mn to improve employment services for employers, job seekers, including those on unemployment insurance, and vulnerable groups. Component 3: Allocating US$7.96Mn to develop and implement comprehensive information systems, offer technical support to modernise key programs, gather evidence for ongoing improvements, and provide capacity building to the Ministry of Labour and Social Security (MLSS) and other social protection stakeholders. Component 4: Covers project management at an estimated cost of US$1.9Mn, while component 5 will have a zero-fund allocation for rapid access to World Bank financing for response and immediate recovery needs during and immediately after a crisis.

(Source: JIS)