CARICOM countries to benefit from CDB loans, grants

The Barbados-based Caribbean Development Bank (CDB) says it will provide more than US$14 million in loans and grants for projects in a number of Caribbean countries.

In a statement, the CDB said that St Vincent and the Grenadines will receive a US$12.62 million loan for a project to reduce the risks associated with landslide and flood hazards.

Last October, Hurricane Tomas caused widespread damage to the island, which was also affected by heavy rains in April, and the CDB said it responded to both events by providing a grant and loans for emergency relief supplies, cleaning and clearing of debris, as well as restoring essential services.

"This latest financing will enable the government to rehabilitate and reconstruct critical infrastructure to better than pre-Tomas conditions, and upgrade and improve the affected emergency shelters to internationally accepted standards."

It said that the project also provides for technical assistance to the government to undertake a hydraulic assessment study of the major watersheds in the central and north windward region of the island, develop standard operating procedures for disaster responses and for undertaking a coastal study as well as medium to long-term sea defence designs for capital works.

Barbados will receive US$250,000 to undertake a feasibility and design study for an irrigation and drainage system. The project is to be underta-ken on approximately 525 acres of agricultural lands in the parish of St Philip.

"Barbados' agriculture sector has been identified as being critical for development in the government's medium-term development strategy. Sustainable growth in the sector requires investment in irrigation and drainage systems, farmers' adoption of improved production technologies and stronger linkages between production and marketing," the CDB said.

Haiti, which is recovering from a devastating earthquake in January last year, will receive assistance from the CDB to meet part of its premium payments to the Caribbean Catastrophe Risk Insurance Fund (CCRIF) for the period June 1, 2011 to May 31, 2012.

CDB said that a US$500,000 grant has been approved for this purpose.

Financial impact

CCRIF is the world's first regional insurance fund owned, operated and registered in the Caribbean for the region's governments. It insures government risk, and is designed to limit the financial impact of catastrophic hurricanes and earthquakes to Caribbean governments, by quickly providing short-term liquidity when a policy is triggered.

The CDB said it will also establish a multi-donor trust fund to support the establishment of a micro-insurance catastrophe risk facility, which aims to provide parametric insurance to protect micro-credit borrowers in Haiti against losses resulting from natural disasters.

The Barbados-based bank will act as trustee and administrator of the fund, Micro Insurance Catastrophe Risk Organisation Fund.

The CDB said that the United Kingdom will make an initial contribution of £955,000 (US$1.5 million) to the fund. The bank said it is anticipated that other donors will contribute over the short to medium term.

Belize will also benefit from a country strategy which outlines the proposed CDB assistance to that county over the period 2011-15.

"This strategy was arrived at after discussion with various stakeholders, including officials of the Government of Belize, selected private sector bodies, non-governmental organisations and the country's other development partners."

CDB said it will assist Belize to strengthen the environment and the institutional framework for sustainable growth, given the need to enhance growth as an anchor for poverty reduction.

- CMC