CDB approves USD12 million line of credit to support education, housing in Dominica
The Board of Directors of the Caribbean Development Bank (CDB) today approved a USD12 million line of credit to the Dominica Agricultural Industrial and Development Bank (DAIDB) to enhance socioeconomic development in the Commonwealth of Dominica. The loan, under the guarantee of the Government of the Commonwealth of Dominica, will assist in providing finance for student loans, and low and lower-middle income housing that, combined, is expected to benefit 400 people.
“We know that quality education and housing are key to advancing the social and economic growth agenda of Dominica. Through this financial support from CDB, the housing stock will be increased and improved; and human capital development enhanced to further advance the country’s progress in achieving the Sustainable Development Goals,” said Daniel Best, Director of Projects, CDB.
Through the line of credit, CDB in partnership with the DAIDB, will improve access to education financing for students, including those from financially disadvantaged and vulnerable households, who wish to access post-secondary and tertiary-level training and upgrade their skills at the technical, vocational and professional levels. DAIDB is the principal mechanism through which the Government provides access to tertiary education loan financing.
In addition, the line of credit will provide financing for mortgages and home improvement to low and lower middle-income groups in Dominica, through DAIDB, which includes the targeting of first-time homeowners, on affordable terms.
The expected outcomes of the project are:
- an increased number of student loan recipients graduating from post-secondary and tertiary level training programmes;
- improved housing for low and lower middle-income households to comprise home improvement and retrofitting, including the use of energy efficiency solutions especially for water heating and lighting; and
- improved institutional capacity of DAIDB to assess and manage climate risk and gender equality in its project appraisal processes.
To complement the line of credit, CDB will also provide a grant for technical assistance to improve the institutional capacity of DAIDB to assess and manage climate risk in its project appraisal processes.
The project supports the Government of Dominica as it continues to focus on infrastructure rehabilitation and social relief following the passage of Tropical Storm Erika, while addressing fiscal sustainability. Significant effort and resources have since been allocated to the reconstruction of public infrastructure and provision of support to the affected population. In addition, the Government has embarked on a number of housing-related projects to restore stability to the livelihoods of residents.
DAIDB most recent line of credit from CDB was in 2009. The USD8 million loan was used to provide resources for the expansion of the productive sector, for human resource development at the professional, technical and vocational levels, and for improved housing and living conditions.