European Investment Bank (EIB) Vice President Ambroise Fayolle (left) and Caribbean Development Bank (CDB) President (Ag.) Isaac Solomon display the signed agreement for a new joint initiative between the two institutions, announced in Washington, D.C., on Thursday, October 24, 2024.
Water supply and management and the ocean ecosystem across the Caribbean will receive much-needed support thanks to a new joint initiative announced by the European Investment Bank (EIB) and the Caribbean Development Bank (CDB).
A €100 million (USD109.4 million) loan from the EIB will boost CDB support to projects that secure the supply of clean water, improve collection and treatment of wastewater and solid waste and upgrade flood prevention.
The investments will help countries adapt to more frequent periods of drought or intense rain caused by climate change and contribute to environmental sustainability through reduced ocean pollution.
The eligible countries for the EIB-supported investments are Antigua & Barbuda, the Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Saint Kitts & Nevis, Saint Lucia, Saint Vincent & the Grenadines, Suriname and Trinidad & Tobago.
“CDB and the EIB continue to enjoy a mutually beneficial collaboration, with this latest initiative providing access to additional concessional resources to 14 states, representing almost three-quarters of CDB’s Borrowing Member Countries. More importantly, those countries represent over 19 million people. Resources such as these are therefore deeply appreciated, as adequate water and sanitation services, and the prevention of water-related disasters, are key to achieving and maintaining development in our region,” said Acting CDB President Isaac Solomon.
“The vulnerability of small island states on the frontline of climate change is at the centre of discussions here in Washington. Working together we can achieve a far greater impact in tackling these challenges than working alone. Partnerships, like the European Investment Bank’s longstanding relationship with the Caribbean Development Bank, mean that we can contribute to projects and initiatives such as the one we have signed today, that support communities and our precious ocean ecosystems as well,” said EIB Vice President Ambroise Fayolle, speaking from Washington DC. “Investing in sustainable water management is vital for the Caribbean small island developing states on the frontline of extreme weather and climate change.”
“Caribbean states emit a fraction of the global greenhouse gasses, yet they are facing the most devastating effects of climate change. The EU is committed to supporting its Caribbean partners in the face of climate change and extreme weather through Global Gateway investment strategy. Resilient infrastructure is at the heart of this,” said Jutta Urpilainen, European Commissioner for International Partnerships.
The EIB and the CDB have successfully worked together to support projects benefitting the Caribbean region since the EIB’s first loan to the CDB in 1978. The EIB’s Board of Directors last week approved the allocation of a further €24.4 million (USD26.7 million) to support water supply services in four regions of Guyana, under a previous joint operation with the CDB.
The project in Guyana will improve the supply of clean water to 5 communities through the construction of five new water treatment plants, replacing old pipes and installing water meters. The new water treatment plants will remove the high iron content in the water and provide water 24 hours a day to all of the households supplied. The project is expected to have a significant impact both in terms of sustainable water management and on the health and quality of life of the communities benefitting.
The Caribbean is vulnerable to climate-change-related extreme weather events and sea-level rise. More violent storms, rising temperatures and unpredictable rainfall are increasing the pressure on both water infrastructure and the surrounding seas. The water sector in the Caribbean is challenged by aging equipment and pipes, leaks, inadequate wastewater treatment capacity and lack of storage capacity.
Meanwhile, the marine ecosystem and coastal economy and communities are threatened by warmer seas, ocean acidification and storm surges. Many countries in the Caribbean are small island developing states which are highly vulnerable to climate change while also facing unique economic and social challenges due to their geography. These economies and communities depend on the biodiversity and health of the ocean surrounding them.