CDB announces new partnership strategy for Anguilla

KINGSTON, Jamaica – The Board of Directors of the Caribbean Development Bank (CDB) on Monday approved a country partnership strategy for Anguilla for the next four years. The partnership supports the Government of Anguilla in confronting the pressing development challenges the country faces.

CDB has proposed a resource envelope of approximately USD35.3 million for the implementation of the strategy, which aims to achieve four key outcomes: improved banking system stability; a better environment for business and investment; upgrades to transport infrastructure; and increased renewable energy capacity.

“This strategy will address the development constraints which stand between Anguilla and its long-term economic growth. Through this programme, CDB will support the Government of Anguilla in restoring the soundness and stability of the country’s financial services sector, and making its private sector more competitive,” said Dr. Justin Ram, Director of Economics, CDB.

The Anguillan economy, vulnerable to the global economic and financial crisis, experienced a slump in economic performance between 2008 and 2012. Since 2013, the economy has averaged 3.1 percent real economic growth in the midst of continuing improvement of fiscal performance.  Although the growth outlook has improved, the Government of Anguilla faces severe challenges and risks to sustaining growth recovery and economic stability. These include obstacles to business development; lack of access to the island by air and sea; and climate change.

CDB, through the country partnership strategy, proposes to

  • provide financial resources to support financial sector reforms;
  • promote a more enabling environment for private sector development, particularly of small and medium enterprises that currently face problems in accessing finance;
  • help the Government of Anguilla assess the viability of upgrading the Blowing Point Ferry Terminal through public-private partnership support; and
  • promote the development of renewable energy options, including assisting in funding a 1 megawatt solar photovoltaic plant to increase renewable energy output in the country’s electricity mix.

CDB has supported Anguilla’s development over the years in several areas, including transportation and communication; education; power and energy. Over the period 1970 to 2014, the Bank approved USD112.1 million in loans, contingency loans, equity and grants to Anguilla.