Inter-American Development Bank

""  Main Page

""  Agenda - Presentations

""  Support Documents

""  Contact Information

""  Washington Conference
     November 11-12, 2003

""  Guatemala Seminar
    
April 20-22, 2004 

""  IDB Main Page

 

International Seminar

Financing Water and Sanitation Services

in the Caribbean

April 26, 2004

1. Background

Water supply and sanitation are essential for the well-being of any country’s population. In the Caribbean countries there is an added dimension: tourism accounts for about 40% of regional Gross Domestic Product and depends on sustainable and safe water supply and sanitation services. Moreover,  the central role that these services play in any country’s socio-economic development has prompted the international community to adopt the Millenium Development Goals (MDGs). According to the MDG targets, the countries -- including those of the Caribbean -- commit themselves to halve by the year 2015 the share of their population without access to safe water supply. In addition, at the Johannesburg Summit on Sustainable Development in August 2002, the MDG target was amended to include a similar goal to halve by 2015 the share of the population without adequate sanitation services.

The Caribbean is in a favored position to meet the water supply and sanitation targets under the MDGs. But providing the physical infrastructure is not sufficient. It is necessary to provide services for all, not only to those who can afford them. The services must also be provided in an “efficientway, which means meeting demand at the lowest possible investment and operating costs in order not to waste scarce resources; and the services have to be “sustainable, that is, the system built today should not fall into disuse tomorrow but rather keep producing decade after decade. 

Despite the advantages mentioned in the Caribbean, there are also challenges, especially those arising from the need to promote the management of water resources in an integrated way. That is, considering alternative uses of this scarce resource in activities such as irrigation, recreation, tourism, energy generation, water supply, wastewater collection, treatment, and disposal. Water in the Caribbean is distributed unevenly and the issues that the water sector faces  are also heterogeneous. In Guyana water resources are abundant while in Barbados and The Bahamas they are scarce. In many countries water demand exceeds natural water supplies. In some countries important efforts should be made to implement an adequate water resources policy framework, acceptable financial mechanisms and adequate institutions to face the issues that the MDGs impose. These challenges that are common to other countries outside the region, are reinforced by factors that are critical in the Caribbean: to preserve the pristine condition of its beaches –a crucial competitive advantage of the region—and maintain the quality and level of its water resources –a scarce resource throughout most of the region. As a result, it is necessary to address the multiple issues raised to comply with the MDGs, one of them being the financing of these services.

Since its establishment, the Inter-American Development Bank has been actively involved in financing water-related projects in Latin America and the Caribbean. In the water and sanitation sector, the Bank has invested approximately US$ 3.8 billion since 1994. The Bank's Integrated Water Resources Management Strategy, approved in 1998, promotes the concepts of efficiency in public utilities, the rational use of water resources and the promotion of public-private partnerships in the sector.

The IDB's main purpose in the water sector is to support and help the countries of the region to meet the Millennium Development Goals (MDGs) through the organization of a series of seminars that will provide an adequate framework for discussion with key stakeholders on mechanisms, options and factors that would increase investments and coverage (in accordance with the MDGs) in the water and sanitation sector in Latin America and the Caribbean. Identifying a new Water Agenda, financial instruments, and financially sustainable alternatives will help the countries in the Region to solve the pressing problems in the potable water and sanitation sector where, in most countries, only a small portion of these needs are presently being satisfied due to lack of financial resources both public as well as private.

2. Objectives

The overall objective of the Seminar was to provide an adequate framework for discussion with key stakeholders on mechanisms, options and factors that would increase investments and coverage (in accordance with the Millennium Development Goals - MDGs) in the water and sanitation sector in the Caribbean.

The Conference raised the awareness of governmental authorities of the investments required to reach the MDG’s in potable water and sanitation as well as identified options and alternatives to overcome the major obstacles that have hindered investments in the sector and that could jeopardize compliance with the MDGs in the coming years. The discussion of solutions that will enable countries in the region to increase service coverage while maintaining adequate fiscal discipline was part of the objectives of this event.

3. Place of the seminar

The seminar was held on April 26, 2004 in Barbados.

4. Participants

Participants were authorities of the central government, water and sanitation officials (ministers, directors of planning institutes, permanent secretaries) from the institutions responsible for Water and Sanitation Services (WSS) provision, and also representative officials of financing institutions in the Caribbean.

5. The Seminar

The seminar had four main blocks. The first session was aimed at addressing the link between water, sanitation and the economic development of the countries in the Caribbean with special emphasis on the link between WSS and tourism and economic development in the region. The first session also addressed the main issues affecting the performance of the WSS and actions needed to reach the Millenium Development Goals will be explored. The second session was dedicated to the financial aspects of the WSS and how they can be addressed. The third block of the seminar was dedicated to the influence of institutional issues on the general performance of the sector. Finally, the fourth block explored the relationships between the water sector widely considered and the tourism industry, this sector being crucial for the economic development of the region.

6. The Documents

The preparation of each presentation was based on seven basic documents prepared by specialized consultants and discussed during the sessions. The proceedings of the seminar will be published.

 

 

 

Last update: 05/04/04

 

Environmental and Natural Resources Management Division
Regional Operations Department 3
Inter-American Development Bank
1300 New York Avenue NW
Washington, DC