CDB signs new funding agreement with AFD

Caribbean Development Bank says it will roll out a new multimillion-dollar initiative that will help its borrowing member countries implement climate-smart, gender-responsive, and agriculture-focused development initiatives.

The regional financing institution said the €4-million grant facility is being financed by the Agence Française de Development.

The bank said the latest phase of the CDB-AFD collaboration is designed to unlock targeted investments, while addressing the technical and financial constraints that often hinder critical projects. It forms part of the French agency’s broader Latin America and Caribbean Investment Facility and builds on the two institutions’ shared commitment to sustainable development in the region.

Structured over five years, the grant will support a regional gender research fund and gender mainstreaming activities, provide investment grants focused on the agriculture sector, as well as the development of a biodiversity finance-tracking approach.

It will also provide for sectoral studies and capacity-building initiatives and project coordination and oversight, including the placement of a dedicated project coordinator.

“The past few years of collaboration with AFD have been nothing but harmonious and highly productive,” said CDB Vice-President of Operations Dr Isaac Solomon.

“We guarantee that this new facility will help countries significantly in advancing climate change adaptation and a low-carbon transition. From producing important gender-related research and sector studies to supporting agricultural investments and tracking biodiversity finance, this is the kind of solidarity that goes a long way in helping our borrowing member countries,” Solomon added.

AFD Director for the Brazil-Southern Cone region, Dominique Hautbergue, said the Caribbean region is highly exposed to climate change and faces increasing natural hazards like hurricanes and flooding.

“At the same time, deep-rooted gender inequality continues to restrict equal access to resources and opportunities. These challenges require united action to build a fairer and safer future.

“AFD is pleased to work with CDB to create a greener, more resilient region, to reduce social inequalities, arrest biodiversity decline, and improve climate resilience,” he said.

The CDB said that the grant facility complements a US$50-million AFD-funded credit facility signed in August 2023.

It said this financing line supports public-sector projects with positive climate outcomes and mandatory gender mainstreaming, in line with CDB’s Gender Policy and Operational Strategy. The financing is currently supporting key regional infrastructure and education projects in St Vincent and the Grenadines, Grenada, and St Lucia.

The new arrangements also build on the successful implementation of the 2016 AFD-Caribbean Investment Facility Programme, which included a US$33-million credit facility and a €3-million technical assistance grant, said the regional development bank, which is based in Barbados.

Completed initiatives under the earlier programme include US$10-million streetlighting retrofits in Jamaica and Suriname, a US$8.1-million sea defence project in St Vincent and the Grenadines, and a US$5-million water security project in St Lucia.

CMC