CDB Welcomes GCF Approval of Major Climate Resilience Investment for The Bahamas’ Water Sector
BRIDGETOWN, Barbados: The Bahamas is set to benefit from more reliable and climate-resilient water services through a comprehensive national initiative with support from the Caribbean Development Bank (CDB / the Bank) to protect its vulnerable freshwater resources and modernise critical infrastructure. These improvements will be made possible following the Green Climate Fund (GCF) approval of the Climate Resilience of the Water Sector in The Bahamas project, a major investment designed to confront the country’s escalating climate-related water challenges.
As the Accredited Entity for the project, CDB led the project’s design and will oversee its implementation in partnership with The Bahamas’ Water and Sewerage Corporation (WSC) and the Government of The Bahamas.
Funding for the initiative totals US$65.2 million, comprising a GCF grant of US$37.506 million, a GCF concessional loan of US$12.546 million, a CDB loan of US$12.546 million and an in-kind contribution of US$2.602 million from The Bahamas’ WSC.
Speaking on the approval, Mr. L. O’Reilly Lewis, CDB’s Director of Projects, stated, “This investment represents a transformational opportunity for The Bahamas. By combining robust climate-resilient infrastructure with strengthened governance and data-driven management, we are helping to safeguard the country’s water security for generations to come. CDB is proud to partner with the GCF, WSC and the Government of The Bahamas on this vital initiative.”
Ms. Kristin Lang, Director of the Green Climate Fund’s Department of the Latin America and the Caribbean Region, added, “This climate-resilient water sector project is GCF’s first single-country project in The Bahamas. Through this investment we are strengthening country-owned solutions in small island developing states where climate risks are highest. The project will strengthen climate-resilient water systems, build long-term resilience and protect essential services in the face of intensifying storms and climate stress. The investment reflects GCF’s commitment to strengthen country ownership and be The Bahamas’ climate partner of choice.”
As one of the world’s most climate-vulnerable Small Island Developing States, The Bahamas faces recurring threats to its fragile water supply systems from hurricanes, storm surges reaching up to seven metres, prolonged droughts and rising sea levels. With 83% of its landmass less than five metres above sea level and a heavy dependence on costly desalination, the national utility faces rising operational costs, frequent damage to water supply systems, and repeated service disruptions. Groundwater lenses, the country’s only natural freshwater source, are also increasingly at risk due to reduced recharge, higher temperatures and saltwater intrusion.
The newly approved project will address these vulnerabilities by strengthening water governance, enhancing national water resource monitoring and delivering major infrastructure upgrades across six islands—New Providence, South Andros, Mangrove Cay, North and Central Andros, Abaco and Acklins. Key interventions include climate resilient wellfields, storm and floodproof pumping stations, expanded storage, improved intersystem connectivity and targeted water loss reduction. Together, these measures will support resilient water security for more than 215,000 direct beneficiaries and bolster national climate resilience for another 199,000 people.
This project closely aligns with the CDB’s Strategic Plan 2026–2035, which places climate action, resilient infrastructure, and strengthened institutions at the centre of the Region’s long‑term transformation.
CDB looks forward to supporting the successful implementation of this landmark project and to helping build a more climate-resilient future for The Bahamas.
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