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Hurricane Mitch and Hurricane Georges were among the most severe and powerful storms ever to hit Central America and the Caribbean in the history of the hemisphere. Hurricane Mitch, carrying 180-mph winds at its height on October 26 and 27, l998, produced massive flooding and destruction, engulfing entire villages and destroying homes, crops and infrastructure. The face of these countries was permanently changed by the devastation.

According to the United Nations, the loss of life and damage to infrastructure, agricultural, commercial and industrial assets has virtually wiped out the development gains of the last 20 years in some areas of the region. Preliminary damage estimates for the region indicated:

· Over 10,000 people dead, 9,000 missing, and 12,000 injured;

· Loss of housing, health facilities and schools estimated at $1.34 billion;

· Damage to water, sanitation and energy infrastructure, roads, bridges and railways estimated at $1.04 billion;

· Loss of productive assets in agricultural, manufacturing and service sectors estimated at $2.91 billion.