The Inter-American Development Bank (IDB) has sanctioned a substantial financial package of US$80 million to The Bahamas, specifically targeting the enhancement of transport infrastructure resilience on the island of New Providence. This strategic initiative is designed to combat the severe socioeconomic disruptions caused by persistent and recurrent flooding events that have long plagued the region.
The funding will be channeled into a comprehensive Global Multiple Works (GOM) programme. The core objectives of this programme are twofold: to significantly upgrade the island’s drainage systems and to optimize the overall efficiency and effectiveness of road maintenance operations. By focusing on key transport corridors, the project aims to fortify them against extreme weather, ensuring continuity of mobility and access.
This operation is a direct component of two broader, strategic regional frameworks championed by the IDB Group. It aligns with the ‘One Caribbean’ approach, which is dedicated to fostering sustainable development across Caribbean nations and Small Island Developing States. Furthermore, it falls under the umbrella of ‘Ready and Resilient Americas,’ a regional impact programme engineered to bolster disaster resilience throughout Latin America and the Caribbean (LAC).
The direct beneficiaries of this infrastructural overhaul include the entire population of New Providence, numbering over 296,000 residents, who will experience improved mobility, particularly during adverse weather conditions. The millions of tourists who visit the island annually will also reap the benefits of more reliable transportation networks. Indirectly, all 398,000 inhabitants of The Bahamas are expected to gain from a strengthened economy driven by enhanced productivity and more optimized public expenditure on road upkeep.
The IDB highlighted the critical need for this intervention, noting that flooding in New Providence routinely leads to major socioeconomic paralysis. Inundated roadways, overwhelmed drainage systems, and accumulated stormwater frequently render roads impassable. This not only severely constrains mobility but also disrupts access to essential services, halts economic activity, and accelerates the deterioration of road assets.
Through this programme, sustainable and resilient flood-mitigation and stormwater-management infrastructure will be designed and implemented across selected transport corridors. This encompasses primary urban road networks, main thoroughfares, and residential community roads. Beyond physical infrastructure, the project will also support the Bahamian Ministry of Works and Family Island Affairs in updating its asset-management system, revising quality standards for road construction and maintenance, and promoting universal accessibility standards for streets.
The financial terms of the loan include a generous repayment period of 25 years, a grace period of 5.5 years, and an interest rate pegged to the Secured Overnight Financing Rate (SOFR).