CDB and GCF sign agreement to boost climate resilience in The Bahamas' water sector

The Caribbean Development Bank (CDB) and the Green Climate Fund (GCF) have signed a Funded Activity Agreement (FAA) for the Climate Resilience of the Water Sector in The Bahamas project, unlocking a US$65.2 million initiative to safeguard the country’s freshwater supply against intensifying climate threats, according to a press release issued by CDB on November 4, 2026. The agreement was signed by Dr. Isaac Solomon, Vice President (Operations), CDB, and Ms. Kristin Lang, Director, Department of the Latin America and the Caribbean Region, GCF. The project is expected to deliver direct benefits to over 215,000 people while providing indirect benefits to the entire country.

The Bahamas is frequently exposed to extreme weather events, making it one of the world’s most climate-vulnerable nations. According to the feasibility study prepared for the project, 83 percent of the country’s land area lies less than five metres above sea level. The study also notes that 81 percent of the country’s water production comes from energy-intensive desalination, increasing both costs and vulnerability. As a result, the country’s water supply infrastructure faces growing threats from hurricanes, storm surges, overland flooding, and sea level rise. CDB serves as the Accredited Entity, working with The Bahamas Water and Sewerage Corporation (WSC), the Office of the Prime Minister, and other key water sector stakeholders.

The project will address national water infrastructure challenges by strengthening governance, institutional capacity, and climate-resilient infrastructure across six vulnerable islands: South Andros, North and Central Andros, Mangrove Cay, Abaco, Acklins, and New Providence. It is expected to strengthen water sector policies, legislation, and regulations, along with improved water resources data and planning. Investments will also target water supply infrastructure and operations. Collectively, these interventions aim to support a system-wide transition to integrated, climate-resilient water resource management. The initiative moves an entire water sector toward integrated management while reducing dependence on vulnerable desalination.

Highlighting the potential impact of the project, Dr. Solomon said, “This agreement marks an important step in strengthening climate resilience across the Caribbean. Water security is vital to every Bahamian community, and this project will help protect critical resources from growing climate threats. We thank the GCF and the people of The Bahamas for their partnership in delivering transformational outcomes.”

Ms. Lang added that the project represents a paradigm shift for small island developing states on the front lines of climate change. Ms. Rochelle Newbold, Special Advisor for Climate Change and Environmental Matters, Office of the Prime Minister of The Bahamas, described water security as “a matter of national survival.”

The project is supported by US$50.05 million in financing from the GCF, comprising a grant of around US$37.51 million and a concessional loan of about US$12.54 million. CDB and partners are contributing a further US$15.15 million in loan and in-kind co-financing. Implementation is expected to begin in 2027 and continue over seven years. Mr. Robert C. Deal, Jr., General Manager, WSC, confirmed the corporation’s role as Executing Agency of the initiative. The investment builds on CDB’s enhanced GCF accreditation, which allows the Bank to develop and deliver individual GCF-financed initiatives of up to US$250 million.