The attached Staff Report appraises a proposal for a loan to the Government of St. Vincent and the Grenadines (GOSVG) to finance a project to reduce the vulnerability of the Sandy Bay community and other North Windward communities in St. Vincent and the Grenadines to aggressive coastal erosion caused by wave action and storm surges associated with the passing of tropical storms, hurricanes and winter swells. This is to be achieved through the construction of sea defences in sections along the Sandy Bay coastline.