Mexico is ready to invest $3.4 billion into rebuilding its coastal resort of Acapulco after it was devastated by Hurricane Otis.
The hurricane made landfall in Acapulco on October 25. According to the National Oceanic and Atmospheric Administration (NOAA), there was “catastrophic damage to structures, including many hotels and high-rise buildings, as well as downed trees, severe flooding, and mudslides.”
NOAA also reports damage to 120 hospitals and clinics, more than 10,000 utility poles, and numerous transmission lines, electrical substations, and a power plant.
During a press conference, Mexico’s Deputy Finance Minister Gabriel Yorio said the country expects to receive $30-$60 million in aid from a catastrophe bond package and an extra $285 million in insurance for reconstruction.
According to Reuters, Mexico’s multi-billion recovery plan will include “tax breaks, humanitarian aid and reconstruction of infrastructure” and will “bring forward social welfare payments by two months, waive electricity charges until February, and provide household necessities for families whose houses were flooded.”
The government is also working with major retailers like Walmart de Mexico to provide food to approximately 250,000 families for three months. Taxes will also be exempt for residents of Acapulco and Coyuca de Benitez until early next year.
Mexican President Andres Manuel Lopez Obrador added: “Fortunately, we have healthy public finances and unlimited resources when it comes to benefiting the people.”
There are more than 100 people dead or missing in Acapulco after Hurricane Otis hit.