Caribbean states are set to benefit from a US$3.5 billion regional recovery programme that will also include significant technological advancement for future development.
The Inter-American Development Bank (IDB) in a release yesterday announced that its Caribbean Governors have thrown their weight behind a recovery programme, dubbed Build Forward. It is described as a US$3.5 billion multi-year programme to help Caribbean countries sustainably recover while making “technological leaps that will bring about a transformational future.” Governors are the top decision-makers at the IDB.
According to the release, many Caribbean economies have been devastated by a tourism collapse caused by COVID-19, as well as a series of natural disasters. A key part of helping countries grow in ways that benefit all citizens is overcoming large infrastructure investment deficits, estimated at 5 per cent of GDP for Latin America and the Caribbean. The multi-donor facility and other financing mechanisms will help governments finance key resilient investments at a time of limited fiscal space.
This initiative, the Bank says, includes a multi-donor facility to provide targeted grant and concessional financing for smart and resilient projects. The facility is expected to mobilise US$1.5 billion in resources for a series of activities that include advisory services, project preparation and “catalyzing private capital” for investments in resilient infrastructure, nature and disaster-risk based solutions.
The Caribbean Governors were briefed by Bank management about the Build Forward project which will take place on March 17-21 in Barranquilla, Colombia, in a virtual format.
IDB General Manager of the Department of the Caribbean Region, Therese Turner-Jones, stated, “We are thrilled to have donors join our Build Forward initiative, which will prepare the people and places of the Caribbean for the future we create together.” She explained, “Build forward is focused on giving citizens of the Caribbean the opportunity to thrive in the more digital future. It will provide better infrastructure services for all citizens, creating jobs, reducing poverty, and bringing much-needed advanced technology into the region.”
At the briefing, IDB President Mauricio Claver-Carone also presented his strategic vision for the Bank in the 2021-2025 period. Governors were briefed on the human and infrastructure potential of the Caribbean, and on the importance of reforming economic institutions to ensure a sustainable foundation for growth.
Build Forward
Besides the multi-donor facility, Build Forward has several other components. The project will provide advisory services and work with countries to implement national investment plans, project banks and project prototypes. It will also provide advanced digital-based solutions in areas such as schools and hospitals, grid systems, highways and foster partnerships that link private sector investors to smart resilient investments that will yield returns and solve a development challenge.
Depending on the need or specific project, Build Forward will dispatch experts in the field to provide training, supply equipment, and provide financial assistance.
Build Forward is also aiming to coordinate financing from multiple donors, including those taking part in the Governors briefing. It will leverage partnerships with organisations such as the Caribbean Climate Smart Accelerator (CCSA) which is already supporting initiatives to build resilience in the region.
Build Forward will provide the requisite preparation countries need to better withstand the effects of natural disasters and will facilitate a smoother recovery process with reduced expenses for repairs and rebuilding after those disasters. Overall, this initiative intends to minimise related consequences as a direct result of investing in smart and resilient solutions, the release added.
