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CAF and Barbados Sign USD 700,000 Grant Agreement to Advance Water Security Programme

CAF and Barbados Sign USD 700,000 Grant Agreement to Advance Water Security Programme

Bridgetown, Barbados. May 14, 2025 – CAF -Development Bank of Latin America and the Caribbean- has approved a USD 700,000 grant to support the reduction of water losses in Barbados’ drinking water system and modernise existing infrastructure. The non-reimbursable technical cooperation agreement will support execution of technical studies, engineering designs, and tender documentation aimed at improving water delivery to meet the growing needs of the people of Barbados.

The agreement was formally signed at the Barbados Water Authority’s Head Office in Bridgetown by Barbados Prime Minister the Honourable Mia Mottley, CAF’s Regional Manager for the Caribbean and Country Representative for Barbados Dr. Stacy Richards-Kennedy and Acting CEO of the Barbados Water Authority Mr. Christopher Mapp. The funding for this initiative comes from CAF’s Water Sector Pre-Investment Program (PPSA), which supports governments with identifying, designing, and structuring infrastructure investments to strengthen water security and service delivery.

Investments in water security have consistently been a priority for the Government of Barbados. Under the leadership of Prime Minister Hon. Mia Mottley, the country has championed initiatives that seek to ensure reliable access to clean water, reduce system losses, modernise outdated infrastructure and mitigate the effects of climate change. Recognizing the vital importance of water security to Barbados, CAF has placed strategic emphasis on supporting this sector and has proudly partnered with the Government through a range of financing mechanisms to accelerate its national water security agenda.

Prime Minister Hon. Mia Mottley, who has been a steadfast advocate for improving water access to all Barbadians, stressed the critical importance of tackling non-revenue water as a key component of Barbados’ climate resilience efforts. She thanked CAF for its ongoing support through both financing and technical assistance, noting the unique value of the bank’s partnership model.

“We have made it clear that the first place where the rubber hits the road for the climate crisis in Barbados is with respect to water,” Prime Minister Mottley stated. It is estimated that Barbados loses 42% of the water that it produces. “Non-revenue water, the water we lose through leaks and other inefficiencies, remains a major challenge as a result of our aging infrastructure. This grant from CAF will support the Barbados Water Authority to better manage the network and help reduce those losses. CAF has not only provided financial support but has also delivered critical technical studies for the water sector. What sets CAF apart is the willingness to go beyond lending and provide grant resources and technical support that can make a real difference.”

CAF’s Regional Manager for the Caribbean and Country Representative for Barbados Dr. Stacy Richards-Kennedy said CAF was proud to approve yet another grant that will serve to enhance water security in Barbados and directly impact the quality of lives of citizens. “Water is one of the most essential resources. CAF has been a proud partner in supporting Barbados’ efforts to strengthen its water sector and improve service delivery to its citizens. This new technical cooperation is another demonstration of our commitment to helping the country build a more efficient and resilient water system, one that can meet the growing demands of today while, at the same time, preparing for the needs of tomorrow.”

The signing of this agreement follows CAF’s High-Level Technical Workshop on Water and Sanitation in the Caribbean where CAF presented the findings of a comprehensive Regional Water Diagnostic Study, which highlighted challenges in the region’s water supply as well as the need for innovative solutions.   

CAF has been a long-standing partner in Barbados’ efforts to build resilience in the water sector. In addition to this new grant, CAF also financed the USD 10 million Barbados Water Rehabilitation Project, which is now 90% complete and aims to upgrade existing infrastructure like pipelines, reservoirs and pump stations, and improve water supply for more than 80,000 residents. CAF also supported the development of a long-term master plan to guide Barbados’ water and sanitation service provision over the next 30 years.

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