CDB APPROVES COUNTRY STRATEGY FOR ST. LUCIA

The Board of Directors of the Caribbean Development Bank (CDB) have approved a Country Strategy for St. Lucia.  This document articulates the Bank’s strategic focus and planned interventions in support of St. Lucia’s development thrust over the period 2013-16.  The amount of CDB financing over the period of the strategy is estimated at USD88.5 million.

CDB’s St. Lucia Country Strategy aims to assist the country in achieving the development outcomes needed to realise sustained growth and poverty reduction.

The strategy proposes to support efforts to strengthen economic and social resilience by improving efficiency of social and economic infrastructure; enhancing sectoral competitiveness and supporting the small business sector; enhancing the capacity for strategic policy management to reduce vulnerability; and improving youth outcomes.

It is informed by several factors, namely the country’s level of development and economic structure; challenges confronting the economy; the Government of St. Lucia’s development objectives; programmes of other donors; and CDB’s past experiences and comparative advantage.

CDB TECHVOC EDUCATION GRANT FOR HAITI

The Caribbean Development Bank (CDB) is to provide an additional grant equivalent to USD4 million to the Government of the Republic of Haiti for a Technical and Vocational Education and Training Project.

CDB approved the initial grant of USD5 million in May 2008 to improve the employability of young people.  The main objective of the project is an enhanced and decentralised TVET system with strong linkages to the private sector and the capacity to provide appropriate and effective training.

The original project comprised six components including building and civil works for three schools in Cap Haitien, Jacmel and JB Damier; furniture and equipment, institutional strengthening; construction supervision; project management; and audit, including the preparation of annual financial statements.

However, the earthquake which devastated Haiti in January 2010 resulted in disruption of education services and significant increase in construction costs.  This additional grant is intended as a response to these conditions.

JAMAICA STUDENT LOAN FINANCING COMING FROM CDB

At least 5,000 eligible students from poor and vulnerable households in Jamaica enrolled at approved tertiary institutions in Jamaica or at the University of the West Indies will be able to access financing provided by the Caribbean Development Bank (CDB) for their studies.

CDB is to provide a loan equivalent to USD20 million to the Students’ Loan Bureau of Jamaica to assist the bureau in offering loans to eligible students for upgrading tertiary level skills in professional, technical and vocational programmes.  This, ultimately, will contribute to sustainable socioeconomic development and poverty reduction by improving Jamaica’s human resource capacity.

The Bank will also provide a grant equivalent to USD175,000 to assist in financing consultancy services for institutional strengthening of the Bureau to address its current operational challenges, and to provide guidance on enhancing its long-term sustainability.

The CDB loan to the Students’ Loan Bureau will be under the guarantee of the Government of Jamaica.

In 2010, CDB approved a USD20 million loan to the Bureau.  Of that amount, USD14.1 million has been disbursed to 2,222 students.  The balance of USD5.9 million is expected to be disbursed by March 2013.

ST. LUCIA TO RECEIVE ADDITIONAL HURRICANE TOMAS RECOVERY FINANCING FROM CDB

The Caribbean Development Bank (CDB) is to provide an additional loan equivalent to USD6.86 million and a grant equivalent to USD24,000 to the Government of St. Lucia to further assist it in executing its Hurricane Tomas recovery programme.

In March 2011, CDB approved a loan equivalent to USD17.960 million to the St. Lucian Government to assist in hurricane recovery.  However, the additional loan is to facilitate a revision in scope of the original project, bringing the total of the loan to USD24.82 million, in addition to the grant.

This will allow for reconstruction of the Thomazo and Canaries Bridges; ravine slope stabilisation works in east Castries; a drainage management study in east Castries; and removal of the Bois d’Orange Bridge.

Hurricane Tomas had a devastating impact on St. Lucia, and two years after its passage, the effects are still very evident across the island.  The main objective of the project is to reduce risks associated with landslide and flood hazards within the project area.