IDB Presents Ways to Catalyze Private Financing, PPPs for Caribbean Development

WASHINGTON — Innovative financing solutions and public-private partnerships (PPPs) are key to unlocking the Caribbean’s development, according to a new report by the Inter-American Development Bank (IDB). Investment in smart, resilient, well-executed infrastructure projects will both help insulate the region from global economic shocks, as well as drive faster and more inclusive growth.

The report, “Catalyzing Capital: Public-Private Partnerships for Resilient Growth,”  provides a comprehensive analysis of the region’s infrastructure investment needs, the enabling environment for public-private partnerships (PPPs), and the reforms that can catalyze new sources and greater volumes of private finance. It also highlights the role of the IDB Group’s regional program, ONE Caribbean, designed to facilitate private investment and expertise for sustainable development.

Caribbean countries have long grappled with fiscal and debt vulnerabilities, which have constrained public investment in critical infrastructure and social services. The report notes that since 1970, Caribbean economies have averaged less than 2% annual growth in real gross domestic product. 

Using IDB-developed methodologies, the report quantifies infrastructure development gaps across key sectors and estimates the Caribbean will require more than $21 billion in infrastructure investment by 2030. 

“Countries across the region need significantly larger volumes of private investment, expertise, and innovation to drive faster and more inclusive growth. This report highlights key sectors—including transport, water and sanitation, energy, and digital telecommunications infrastructure—that are most critical for sustainable growth and best placed to benefit from PPPs, as well as areas where focused reforms are most likely to deliver results,” said Anton Edmunds, IDB General Manager for the Caribbean. 

“The IDB Group and our ONE Caribbean regional program can provide countries and firms with financial, technical, and project preparation support needed to help catalyze new investments in these and other priority sectors,” added Edmunds.

Surpassing US$21 billion in infrastructure investment by 2030 could generate additional economic growth exceeding $84 billion across the region. These estimates exclude additional investments needed for social infrastructure such as schools and hospitals, suggesting actual needs may be even greater.

Given limited fiscal space and heightened exposure to natural disasters, the report emphasizes the critical role of PPPs in mobilizing private capital and delivering high-quality infrastructure. Drawing on global and regional experience, the IDB outlines how PPPs can enhance efficiency, reduce costs, and accelerate innovation.

The report is part of IDB’s "Caribbean Economics Quarterly" publication series, which focuses on the economic performance of The Bahamas, Barbados, Guyana, Jamaica, Suriname, and Trinidad and Tobago. With a commitment to fostering development, this IDB report continues to be a trusted resource for policymakers, academia, and businesses. Previous editions are available here.