Barbados will Improve its Climate-Resilient Water Infrastructure with IDB Support

July 30, 2024

Barbados will increase its resilience to climate change impacts by improving water security and supply with a US$40 million loan from the Inter-American Development Bank (IDB) that will expand the reuse of reclaimed wastewater.

The project’s cornerstone investment is the construction of the New South Coast Water Reclamation and Re-use Facility to treat wastewater and promote its reuse in irrigation and groundwater reserves, as part of the long-term planification and prioritization of resilient investments by the government of Barbados.

This project aims to more than double water availability in Barbados by 2050 to an estimated 238 cubic meters per person annually compared with a previous estimate of 98 cubic meters per person, thus contributing to more water and food security, public health, and environmental protection.

Approximately 50,000 people are expected to benefit from the project because of upgraded wastewater services. Indirectly, the entire population of Barbados will benefit from improved potable water infrastructure resilience and enhanced marine ecosystem protection. Additionally, the project will support 210 small farmers, 41% of whom are below the poverty line, providing them with a sustainable water source for irrigation.

The project will finance all process units and ancillary facilities to provide secondary and tertiary treatment, as well as the construction of an advanced water treatment side stream, which will include safe and sustainable treatment and management of sludge to reduce pollution. Additionally, it will support the upgrade of the existing South Coast Sewage Treatment Plant with new equipment and an odor control system.

To facilitate the reuse of reclaimed wastewater, the project will finance a 25-kilometer pipeline to transport fit-for-purpose reclaimed wastewater for irrigation, potentially benefiting 1,320 hectares of farmland. The project will also finance infrastructure to support aquifer recharge, including pipelines, injection wells, boreholes, and pumping stations.

The project will develop baseline assessments and results-based management plans for biodiversity, conservation and ocean protection, as well as a 7MW solar photovoltaic plant with battery storage to enhance energy efficiency and reduce the carbon footprint of the facility. 

In addition, the project will strengthen key institutions on water resource management, operational efficiency and monitoring. This includes measures to improve governance, project management capabilities and promote increased participation of women and persons with disabilities within the Barbados Water Authority.

The IDB loan has a 25-year repayment term, a 5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR). Local counterpart funding will total US$70 million.

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