The Caribbean Development Bank (CDB) has secured an additional USD50 million in financing through a groundbreaking credit facility established with the French development agency Agence Française de Développement (AFD). The line of credit, created in 2016 and now replenished, will assist eligible governments with climate resilient and gender-responsive initiatives. USD33mn was committed previously and over USD 8mn has been provided for projects in Saint Vincent and the Grenadines and Grenada under the new line to date.
Acting Vice President of Operations at CDB, Therese Turner Jones emphasised the importance of the ongoing partnership with the AFD in addressing the region’s climate related 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 noted.
The funding from AFD aims to remove both financial and technical barriers faced by countries offering a combination of technical assistance, loans, and grants to help governments invest in adaptation and mitigation initiatives. Priority sectors include renewable energy, water and wastewater management, agriculture, forestry, land use, infrastructure, and transportation, all with a focus on reducing greenhouse gas emissions, increasing climate resilience, and lowering social vulnerabilities.
CDB’s Chief Strategy and Accountability Officer, Onika Miller, underscored the importance of the intervention: “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 establishment, the AFD credit line has already yielded significant benefits for the region. Acting Director Projects Department, L. O’Reilly Lewis, highlighted the positive impact on education through the AFD-funded Grenada Education Enhancement Project. This initiative, currently in its second phase, has focused on rebuilding and strengthening education infrastructure in the face of increasing natural disasters, such as the recent Category 4 Hurricane Beryl.
Caribbean countries face a myriad of natural hazards, from hurricanes to flooding, with significant economic and social impacts. These challenges are expected to grow more severe as climate disasters become more frequent. CDB continues to explore opportunities to support Caribbean nations as they navigate fragile economic conditions, high levels of public debt, and the pressing need for climate adaptation. This CDB-AFD partnership represents a vital resource for the region’s sustainable development, providing the financial and technical support necessary to strengthen economies, safeguard infrastructure, and enhance climate resilience.