New study reveals deficiencies in Caribbean infrastructure

A comprehensive study conducted across 15 Caribbean territories by CAF – Development Bank of Latin America and the Caribbean has revealed significant deficiencies in the region’s infrastructure, emphasising the need for climate resilient investments. With Caribbean countries disproportionately vulnerable to the impacts of climate change, these gaps hinder efforts at building resilience against environmental shocks.

The preliminary findings were presented to senior Caribbean and Commonwealth Secretariat officials in London, during a symposium organised by CAF, in partnership with the Commonwealth Secretariat and the Antigua and Barbuda High Commission to the United Kingdom titled Accelerating Collective Action in Support of Caribbean SIDS.

CAF’s study – Sustainable Pathways: Addressing Infrastructure Needs in the Caribbean – the first of its kind for the Caribbean, was done to help tackle the deficiency of data. The findings will support leaders, policymakers and development partners in making decisions about climate resilience initiatives, understanding resource scarcity constraints, economic diversification opportunities and unlocking critical financing. CAF was deliberate in extending the scope of the study beyond its shareholder countries, recognising that these issues affect all Caribbean countries. The study focused on five areas – transportation, energy, water, sanitation, and telecommunications.

According to the report, presented by Veronica Frisancho, manager of knowledge at CAF, the consequences of climate change for the region are “severe”. It compared the impact of natural disasters on the Caribbean to the impact on South America and Central America between the period 2010 and 2024. The Caribbean lost 260 times the number of people (loss of life) during that period, although it experienced fewer natural disasters. The number of people left homeless was also staggering at 471, 407. Total damage in the Caribbean was also 12 times that of the comparative regions at USD 126.5 billion. For a relatively small region, it cost US$17.8 billion to rebuild after disasters during the same period, a similar cost to that of South America. Restrictive access to financial markets was found to be a key contributor to the infrastructure deficiencies in the Caribbean.

In some of the categories examined in the report, consistent and worrying gaps were discovered. In energy, there was a high reliance on fossil fuels, with only 15 per cent coming from renewable sources. Across the 15 territories, barring Trinidad and Tobago and Suriname, citizens faced high energy costs as a result with unreliable service and frequent interruptions.

In the area of transportation, the findings show the region is facing deteriorating road infrastructure, which is directly linked to higher numbers of road fatalities when compared to Latin America as well as increased congestion. The region’s roads are also deteriorating at an accelerated pace due to the impact of climate shocks and insufficient standards. There is some good news, as the report found that Barbados, Jamaica and Trinidad and Tobago are incorporating resilience in the road infrastructure, investing in climate resilient design drainage systems or coastal protection measures.

Access to water across the region was relatively good. However, the percentage of non-revenue water (water that is lost in the process of delivery to households) is 45 per cent. “That is huge,” according to Frisancho, because there is a high cost associated with this and it speaks to inefficiency in the water distribution systems in the region. Successful examples from the Bahamas and Jamaica in reducing water losses demonstrate the potential for significant cost savings and improved efficiency.

The report has four main recommendations: mitigation as a development opportunity, resilient infrastructure (adaptation), investing in institutions and regional cooperation and integration. It encourages Caribbean SIDS make an urgent shift towards renewable energy and resilient infrastructure to mitigate the impacts of climate change and economic vulnerabilities. Recommendations include leveraging the region’s high solar and wind potential to reduce energy costs and reliance on imports, and investing in resilient infrastructure despite higher initial costs, as it offers long-term economic benefits and cost savings. Strengthening regulatory frameworks and promoting digital literacy are also crucial to ensure efficient service delivery and the promotion of innovation.

The complete report will be published in the first quarter of 2025.