EIB and the European Union agrees USD 70 million support for climate change resilience and adaption in Dominican Republic

The European Investment Bank (EIB) is backing a post-disaster and climate change resilience and adaptation programme in the Dominican Republic, to finance the rebuilding of infrastructure and housing damaged by natural disasters.

In addition to the USD 50 million EIB loan, USD 20 million will be provided through grants from the EU-Caribbean Investment Facility (CIF), which will support the reconstruction of housing in the affected provinces and provide technical assistance support for the government and local authorities.

The financing partnership with the Dominican Republic government will support the reconstruction of damaged roads and housing, helping to re-build better climate-resilient infrastructure. The support targets infrastructure damaged by Hurricane Matthew in October 2016 and flash floods in November 2017 in the four provinces mainly affected by these catastrophic events – Monte Cristi, Puerto Plata, Espaillat and Duarte.

The programme will help to build 1,100 new affordable houses, 55km of new and upgraded roads, over 4km of new and rehabilitated dykes. These new projects will create around 2,400 jobs.

Partnership with the Dominican Republic and the European Union

The agreement signed in the presence of the Minister of Finance for the Dominican Republic, Donald Guerrero Ortiz and the Vice President of the European Investment Bank, responsible for activity in Latin America and the Caribbean, Emma Navarro, will contribute to achieving Sustainable Development Goals (SDG). It will target poverty eradication, gender equality (including support for single-parent households), clean water and sanitation, sustainable cities and climate action. It will also contribute to achieving objectives identified in the Cotonou Agreement and the Dominican Republic’s National Development Strategy 2030.

Commenting on the new agreement during a signature ceremony in Santo Domingo, EIB Vice President, Emma Navarro said: “We are pleased via this flagship project to be helping the Dominican Republic in its efforts to rebuild its infrastructure and housing damaged by natural disasters, improving its resilience and adaptation to the effects of climate change. This agreement demonstrates EIB’s and EU’s commitment to foster sustainable and inclusive growth in the Dominican Republic and to face the challenges of global warming, helping to improve livelihoods in the region.”

The EIB and climate action

The EIB, as the world’s largest multilateral provider of climate finance, aims to dedicate at least 25% (35% outside of the EU) of its investments to climate change mitigation and adaptation, supporting low-carbon growth with climate resilience. Outside of the EU, it aims to dedicate at least 35% of its investments to these targets.

Original source: EIB
Published on 25 July 2019