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The deal generated US$125 million in fiscal savings which will be channeled into new resilience investments.
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The debt conversion represents an innovative financing model for climate adaptation that avoids increasing the burden of public debt.

Barbados has completed an unprecedented debt-for-climate operation to finance water and sewage projects resilient to climate change. Through support from its international funding partners, Barbados replaced outstanding, more expensive debt with more affordable financing, generating US$125 million in fiscal savings which will be used to enhance water resource management and increase water and food security.
CIBC Caribbean, as lead arranger, successfully closed the Sustainability Linked Loan transaction last week. The loan was backed by US$300 million in guarantees - US$150 million each from the Inter-American Development Bank (IDB) and the European Investment Bank (EIB), the latter under the European Union's Global Gateway Initiative. With the support of the guarantees, Barbados secured a long-tenor, local currency loan at favorable conditions arranged by CIBC Caribbean, with regional banks investing in the transaction.
The debt conversion will create the necessary fiscal space to finance upgrading the South Coast sewage treatment plant into a modern water reclamation facility plus several associated facilities. The water reclamation facility, one of the first in the Caribbean, will produce water suitable for use in agricultural irrigation and groundwater recharge.
The additional fiscal space also allows for investments to reduce water losses and improve the sewer system. The reduction in marine and groundwater pollution will help protect marine ecosystems and nearshore reefs, as well as groundwater quality, and safeguard public health. The IDB and the Green Climate Fund (GCF) are providing a total of US$110 million in upfront funding for the project, including a US$40 million grant from the GCF.
Barbados, one of the world’s most water-scarce countries, faces an average per capita water availability four times less than the global average—a challenge set to worsen with climate change. It also faces a large annual food import bill, as farmers lack water to expand crop production.
The debt-for-climate conversion has been structured as a Sovereign Sustainability-Linked Loan (SSLL), marking the first SSLL tied to a sovereign water security project. The sustainability targets underpinning the loan relate to the volume and quality of reclaimed water generated by the upgraded plant. If the targets are not met, the government incurs a financial penalty, which will be paid into a specialized trust for environmental investments, the Barbados Environmental Sustainability Fund.
The transaction will help Barbados advance its resilience plans outlined in the country’s Updated Nationally Determined Contribution (NDC) and its Investment Plan for Prosperity and Resilience, in alignment with the Paris Agreement and the country's Roofs to Reefs Program by enhancing climate resilience through increasing water availability and food security and preventing marine pollution.

Prime Minister Hon. Mia Mottley, SC, MP:
“In the face of the climate crisis, this groundbreaking transaction serves as a model for vulnerable states, delivering rapid adaptation benefits for Barbados. With upfront funding from our partners, we are building a state-of-the-art facility to boost water management, food security, and resilience—showcasing how innovation and cooperation drive environmental and fiscal gains.”

IDB President Ilan Goldfajn:
“This is an important milestone in several dimensions. It is the first debt-for-climate operation focused on climate resilience, paired with a groundbreaking financial innovation with unprecedented partnerships,” said IDB President Ilan Goldfajn. “I will have the opportunity to be in Barbados in a few days to do a deep dive on this operation and related project and see how we can replicate this model in other instances. This has an impact on scale with innovation and partnership at work.”
EIB President Nadia Calviño:
“The European Investment Bank is providing innovative financing solutions to support those most vulnerable to climate change, alongside our partners, the Inter-American Development Bank, the Green Climate Fund, and the European Commission," said EIB Group President Nadia Calviño. “As the Climate Bank, we are proud to be part of the first debt-for-climate resilience conversion, which will support vital investments in Barbados and could give us an important model for other such operations in the future.”
CIBC Caribbean’s Chief Executive Officer, Mark St. Hill:
“Barbados’ initiative enhances climate resilience and sets a benchmark for sustainable adaptation for the Caribbean. CIBC Caribbean is honored to collaborate again with the Government of Barbados and multilateral agencies like the IDB and EIB to set precedents for innovative financial mechanisms that drive environmental stewardship in our region. This partnership underscores our commitment to accelerating climate action and fostering sustainable development across the Caribbean.”
GCF Executive Director, Mafalda Duarte:
“Debt-for-climate conversions can support responses to two overlapping crises: constraining debt and the escalating climate emergency. The Green Climate Fund is a proud partner of Barbados in bringing a coalition of financiers together, all backing an innovative financial instrument aimed at helping the island nation achieve its development and climate goals."

PHILIPSBURG:--- The Sint Maarten Police Force (KPSM) is investigating a shooting incident that occurred earlier today on Fan Coral Road in Beacon Hill. At approximately 6:30 p.m., Central Dispatch received the first report of an armed confrontation at a private residence.

Preliminary investigations indicate that an armed intruder on his property confronted a male resident. During the altercation, the resident and his dog attempted to defend themselves. The confrontation escalated, resulting in both the resident and his dog being shot.

The male victim sustained a gunshot wound to his arm and was treated on-site before being transported to the Sint Maarten Medical Center (SMMC) for further medical care. The dog, who suffered a gunshot wound to the neck, was later attended to by a veterinarian.

It is believed that the resident, in self-defense, injured the suspect with a machete during the incident. The suspect is believed to have fled the scene with injuries.

Detectives and forensic officers are actively investigating the case. The police urge anyone with information about this incident or the suspect’s whereabouts to come forward. Assistance from the public could be crucial in identifying and apprehending the suspect.

If you have any information, please contact the Sint Maarten Police Force 1 721-542-2222 or the tipline at 9300

KPSM Press Release.

PHILIPSBURG:--- With the 2024 tourism and holiday season in full swing, the Inspectorate of Economic and Transport Affairs (IETA) is reminding all taxi and tour operators transporting cruise passengers to prioritize their timely return to the harbour. This advisory is especially relevant for operators traveling from areas such as Maho, Marigot, and Simpson Bay during late afternoon hours when traffic congestion typically intensifies.
IETA encourages all operators to plan accordingly to avoid delays and ensure a seamless experience for cruise passengers as they prepare for their departure.

PHILIPSBURG:--- The Inspectorate of Economic and Transport Affairs (IETA) reminds all passenger transport operators to adhere to the passenger transport ordinance and decree as well as the Regulation of Motor Vehicle Inspection and the Road Traffic Ordinance. Always have readily available the following documents to present at the first request of a transport controller: 1) the authentic version or authentic copy of the main permit, and if applicable, the assistant driver’s permit; 2) a valid vehicle insurance policy displaying the correct vehicle identification number (VIN) and license plate number attached to the vehicle; 3) the motor vehicle inspection card; and 4) A valid Sint Maarten’s driver’s license.
Operators who find themselves without a vehicle due to ongoing mechanical or autobody repairs to their current vehicle can acquire a substitute vehicle for the duration of the repairs. This process entails having the motor vehicle inspection and vehicle insurance policy updated to reflect the VIN of the substitute vehicle. The permit holder or assistant driver must then visit the offices of Section Transport located at Juancho Yrausuin Boulevard #6 (across Fairway Mark it) to obtain a Substitute Vehicle Form outlining the vehicle change information and the duration of the change. This process serves the purpose of legitimizing the changes in operation which may prevent the operator from accessing certain facilities, such as the harbour, airport and hotels or other service opportunities.
Operators who have any related or other questions on the above-mentioned regulations can contact Section Transport through This email address is being protected from spambots. You need JavaScript enabled to view it. or via WhatsApp at +1721 559 7685.