US$33 million to finance Climate Change-Resilient Infrastructure
Officials from the Caribbean Development Bank (CDB) and the Agence Française de Développement (AFD) have signed an agreement to provide US$33 million towards financing sustainable infrastructure projects in the Caribbean region. At least 50 percent of the funds will be used to fund climate change adaptation and mitigation projects.
The agreement was signed last month at the CDB headquarters in Barbados, by French ambassador to the Organisation of Eastern Caribbean States and Barbados, Eric de la Moussaye, in the presence of CDB vice-president (operations), Patricia McKenzie.
“Caribbean countries are particularly vulnerable to the impacts of climate change, with our geographical location leading to high exposure to natural hazards. Economic conditions also play a role, as there is a lack of access to long-term resources to finance sustainable climate-related infrastructure projects. We believe that these additional funds will go a long way towards building resilience and mitigating the impact of climate change in our region,” McKenzie said.
The funds are being provided by AFD under a credit facility agreement with CDB. AFD is the primary agency through which the government of France provides funding for sustainable development projects.
The facility will be used by CDB to augment financing for infrastructure projects in several areas: renewable energy, water and sanitation, waste management, adaptation of infrastructure to the effects of climate change, protection of coasts and rivers.
The facility is complemented by a EUR3 million technical assistance grant which will finance feasibility studies for projects eligible for financing under the credit facility.
The agreement supports the improvement of Caribbean economies’ resilience and vitality through the development of sustainable infrastructure projects with significant environmental or climate impacts. It is in alignment with the Bank’s corporate priority of promoting environmental sustainability.