The Caribbean Development Bank (CDB) has secured an additional US$50 million in financing through a credit facility established with Agence Française de Développement (AFD), the French development agency.
Originally created in 2016, this line of credit has now been replenished to support eligible Caribbean governments in implementing climate-resilient and gender-responsive initiatives. So far, over US$8 million from the new line of credit has been allocated to projects in Saint Vincent and the Grenadines and Grenada.
Therese Turner Jones, Acting Vice President of Operations at CDB, highlighted the importance of this partnership with AFD in tackling the region’s climate challenges. “All our client countries are highly vulnerable and actively experiencing the impacts of climate change.
“This alliance with the French Government through the AFD has further diversified the Bank’s funding sources and provided much-needed support for critical infrastructure projects with environmental, climate change mitigation, adaptation, and gender mainstreaming benefits,” she said.
The funding aims to eliminate financial and technical barriers faced by Caribbean countries, offering a blend of technical assistance, loans, and grants to aid governments in their adaptation and mitigation efforts. Priority areas include renewable energy, water and wastewater management, agriculture, forestry, land use, infrastructure, and transportation. These initiatives focus on reducing greenhouse gas emissions, enhancing climate resilience, and lowering social vulnerabilities.
Onika Miller, CDB’s Chief Strategy and Accountability Officer, underscored the importance of this intervention, stating, “There is an urgent need to strengthen the region’s capacity to address climate change and increase Caribbean resilience. These partnerships are the cornerstone on which we enable and expand our capacity to assist governments in transitioning their economies through improved access to adequate and affordable financing.”
Since its inception, the AFD credit line has already delivered significant benefits to the Caribbean region. L. O’Reilly Lewis, Acting Director of the Projects Department at CDB, pointed out the positive impact of the AFD-funded Grenada Education Enhancement Project. Now in its second phase, the initiative focuses on rebuilding and strengthening education infrastructure, crucial in a region frequently hit by natural disasters like the recent Category 4 Hurricane Beryl.
