18th July

Published on
CDB Secures USD10 Million Loan From IDB for ReConstruction, Recovery and Development in GrenadaThe Board of Directors of the Caribbean Development Bank (CDB) has given its approval for the Bank to borrow a sum up to the equivalent of USD10 million from the Inter-American Development Bank (IDB) for the proposed ReConstruction, Recovery and Development Programme for Grenada, which suffered extensive damage from Hurricane Ivan on September 7, 2004.The Board gave the go-ahead during a meeting which was held at CDB headquarters in Barbados on Thursday, July 14, 2005. The meeting was chaired by President, Dr. Compton Bourne.At the end of June this year, the IDB's Board of Directors approved a request from CDB for a loan to support the long-term recovery and reConstruction of Grenada's economic, social and environmental assets, including housing infrastructure and private sector credit. The loan will provide support to Grenada in three component areas: housing infrastructure, business revitalisation, and environmental and public infrastructure reConstruction.The initiative is consistent with the IDB Charter, which gives it authority to finance the development of Borrowing Member Countries of CDB which are not members of IDB, by channelling loans and technical cooperation resources through CDB.Community Services Enhancement Project in Guyana to get CDB FinancingA project which will seek to raise the socio-economic profile of four communities in Guyana is to receive financial assistance from CDB. The project will provide social and economic infrastructure and technical assistance in policy reform and institutional strengthening to the communities of Bartica, Charity, Parika and Supenaam. CDB's Board of Directors approved a loan up to the equivalent of approximately USD13.6 million and a technical assistance grant up to the equivalent of USD200,000 to the Government of Guyana. The civil works component of the project will see, among other things, improvements to stellings and markets; the operations of which are expected to lead to increased revenues, which, in turn, will provide indirect benefits to agriculture, commerce and the rest of the country. The communities are also expected to benefit through improved access to essential social and economic infrastructure, and improved governance through increased public consultation and participation. The project accords with the strategy by the Government of Guyana to improve governance and services in communities with the aim of making them more financially self-supporting.Notifications by the PresidentThe President notified the Board of his prior approval of financing for the following sub-projects. Short-Term Advisor to the Sugar Industry Transition Management Team in St. Kitts and NevisThe President approved a grant of up to the equivalent of USD69,850 to assist the Government of St. Kitts and Nevis in developing a Strategic Transition Plan for diversifying from the production and export of sugar to other economic activities.The more than three-hundred-year-old sugar industry in St. Kitts and Nevis has been experiencing serious difficulties since the mid 1980s, and the Strategic Transition Plan is expected to outline a detailed budget for moving the country away from sugar production for export. This Plan will then be used to coordinate and manage the transition process. CDB Grant Approved for Nevis Water Resource Management StudyThe President also approved the use of funds up to the equivalent of USD42, 000 to assist the Government of St. Kitts and Nevis in the development of a comprehensive strategy and action programme for water resources management in Nevis. Nevis, which is dependent on groundwater resources for its public supply, has been moving towards a serious water crisis over the past five years, prompting the Government of St. Kitts and Nevis to request assistance from CDB.The Preparation of a Strategy and Plan for CDB's Operations in HaitiAn amount equivalent to USD30,000 from CDB's Special Funds Resources has been approved by the President to finance the engagement of a consultant to prepare a strategy and plan for CDB's operations in Haiti.CDB's Board of Governors approved Haiti's accession to membership of the Bank at its Annual Meeting in St. Kitts and Nevis in May 2003. Since then the Bank has been preparing for work in Haiti and developing an appropriate approach to initial programming that would reflect both the special needs and constraints in Haiti and the Bank's comparative advantage in contributing to poverty reduction.

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