Caribbean nations are grappling with a significant challenge in securing the financial resources needed to invest in resilient infrastructure. For small island developing states where freshwater is already scarce and disruptions intensifying, finding innovative solutions for water security is no longer optional — it is essential for survival.
To address this challenge, the IDB has partnered with the Green Climate Fund (GCF) to give life to the “Barbados Resilient South Coast Water Reclamation Project”, an innovative financing model for $70 million that addresses two major issues in Barbados:
First, resilience: the country faces significant water challenges, with an estimated 285 m³ of fresh water available per capita per year. Projections indicate a decrease in rainfall, with a negative median, further stressing water resources. To enhance resilience, it is crucial to address the declining groundwater levels and the increasing saline intrusion caused by rising sea levels. Implementing adaptive strategies such as sustainable groundwater management with managed aquifer recharge, innovative water reclamation technologies, and robust water governance policies can mitigate these threats and secure the country’s primary freshwater supply for the future.
Ensuring water security is the main development impact outlined in the Funding Proposal as the Project aims to limit the forecasted decrease in water availability/per person/year, including the forecasted increasing temperatures and decreasing precipitation for the region.
The financing will allow for the construction of a new water reclamation and reuse facility in Barbados that will generate 3.05 Mm3/year of reclaimed water from the advanced treatment of wastewater.
In developing a new sustainable water source in Barbados, the project will contribute to improving resilience and diversifying water sources for agricultural irrigation and managed aquifer recharge. By 2050, the models estimate that water availability will be 98 m³ per person per year without the project and 238 m³ per person per year with the project.
Table 1: Predicted change in precipitation (Dmm) for 2041 – 2060 from an ensemble of Coupled Model Intercomparison Project (CMIP6) models with the Shared Socioeconomic Pathways SSP2-4.5 scenarios, relative to the climate normal period 1991 – 2020.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
| Pr | -4.3 | -3.7 | -3.9 | -0.7 | -10.2 | -30.6 | -18.7 | -13.9 | -6.3 | -9.7 | -4.3 | -13.4 | -119 |
Under the Coupled Model Intercomparison Project models with SSP 2-4.5, annual precipitation is projected to decrease by 119 mm (9%). The most severe drop is expected from May to July, coinciding with peak agricultural demand. By 2060, drought conditions will increase, reducing aquifer recharge and leading to saline intrusion, affecting groundwater quality and quantity.
- Rainfall Decrease: A study by the Caribbean Institute for Meteorology and Hydrology (CIMH) projects a 10-20% decrease in rainfall by 2050 under moderate emission scenarios.
- Drought Frequency: The frequency of droughts is expected to increase by 15-20% by 2050.
- Water Supply Impact: The Government of Barbados estimates that water availability could decline by up to 30% by 2050, considering both reduced rainfall and increased evaporation.
Second, sovereign debt: as the country slowly recovers from the pandemic, the debt-to-GDP ratio has shrunk and reached 110.8% in fiscal year 2023/24. To pursue this trend, the Government of Barbados via the Ministry of Finance continues efforts to reach fiscal sustainability by promoting structural reforms in public financial management, as well as innovative financial instruments such as the Debt for Nature Conversion in 2022 and the Debt for Climate Conversion announced in 2024.
The latter allows the Government to create fiscal space without increasing the debt burden. The Government, backed by matching guarantees of $150 million each from the IDB and the European Investment Bank (EIB) in the 2024 transaction, buys back expensive debt titles and emits cheaper debt with specific biodiversity and/or climate commitments. The savings generated from debt conversions are allocated for specific purposes. In the Barbados case, these savings have been prioritized for resilient investments such as the South Coast Water Reclamation Project.
In this innovative approach to building resilience in the Barbados water sector, it is important to underline that the project will increase the availability of water for irrigation and contribute to improving food security, as well as safeguarding public health and protecting the environment because of the increased sewage treatment levels.
The direct beneficiaries will be 48,825 people who will now be connected to the new South Coast Water Reclamation project, and 374 small farmers, of whom 41% are below the poverty line. Specifically, with the agricultural reuse of reclaimed water, some 114 small farmers leasing government land, mainly in the River Plantation farming district, will benefit from a sustainable source of water.
Additionally, farmers in two districts at Silver Hill and Gibbon’s Boggs will benefit from improved groundwater abstraction from the Christ Church aquifer, as the project will supplement groundwater resources by up to 1 Mm3 per year, resulting in the improved reliability of the water supply for irrigation.
The entire population of Barbados will benefit as the project will enhance the resilience of the potable water services infrastructure and improve the quality of the effluent discharged, thus reducing impacts on the marine ecosystems. The Funding Proposal further allocates resources towards the construction and installation of a 7MW solar energy plant and associated battery storage system.
This alternative energy generation will allow the Barbados Water Authority, the country’s provider of water and sanitation services, to enhance the resilience of its services and improve energy efficiency, ultimately reducing operation and maintenance costs and boosting operational efficiency.
Building on the Bank’s experience, knowledge, and strong presence in the region, IDB sought accreditation to the Green Climate Fund to catalyze the regional impact of its projects and programs, paying particular attention to vulnerable communities. In addition, IDB seeks to strengthen the institutional capacities of national entities in the region to enable them to access climate finance directly.
Leave a Reply