The Development Bank of Latin America and the Caribbean (CAF) has conducted its first study into the infrastructure needs of the Caribbean.
A preview of the report titled “Sustainable Pathways Addressing Infrastructure Needs in the Caribbean” was presented on January 29 at the CAF’s inaugural International Economic Forum in Panama City, Panama by Walter Cont, the Director of Socioeconomic Research.
The report diagnoses infrastructure gaps across15 CARICOM member states, focusing on energy, transport (road and marine), water/sanitation, and ICT sectors.
It uses a “traffic light” system to highlight areas needing attention, ranging from minor improvements to significant opportunities for investment.
The report also identifies opportunities, such as climate change mitigation and resilient infrastructure development, recommending improved regional cooperation and institutional frameworks.
Electricity prices across the Caribbean is found to be high when compared to Latin America and the United States.
This is due to many states being highly dependent on fossil fuel to power their grids.
The highest costs can be found in Grenada, where islanders pay over US$0.45 kilowatt per hour for electricity, while in Trinidad and Tobago it’s the cheapest at just under US$0.05 per kilowatt hour.
Cont said the report found that despite the price, access to the power grid across CARICOM member states is high and the service is reliable.
He noted the report found there is a major opportunity for Caribbean countries to invest in resilient power generation systems that could withstand challenges posed by natural disasters and external shocks.
Water rates across the Caribbean are affordable but it’s mainly due to subsidies.
Access to water is generally high, however, there are concerns about water scarcity.
Cont said the report makes several recommendations.
“The first one is mitigation as a development opportunity, not only as a decarbonisation opportunity, but as a development opportunity. Second, resilient infrastructure, the focus on investing for the future and not covering the problem from the past. The third message is modernising frameworks, not only in governance, but also regulatory frameworks. The fourth one is coordination and cooperation for infrastructure development,” he said.
Cont said CAF is ready to help Caribbean countries to develop their infrastructure to face future threats.
He noted CAF has experience with projects across Latin America and they can be replicated here.
The full report, offering detailed analysis and policy actions, will be released in March.