NASSAU, BAHAMAS — The Davis administration is moving to secure up to $30 million in financing from the Caribbean Development Bank (CDB) as it advances Phase II of the Bahamas Water Supply Improvement Project, a multi-island programme designed to upgrade water infrastructure and support long-term economic and social resilience.
The proposed borrowing is contained in a resolution before Parliament authorising the Government of the Commonwealth of The Bahamas, through the Minister of Finance, to borrow funds from the Caribbean Development Bank in an amount not exceeding twenty-nine million, nine hundred and thirty-three thousand United States dollars. The resolution further authorises the Government to enter into the necessary contractual arrangements for the financing of Phase II of the Bahamas Water Supply Improvement Project, with the Water and Sewerage Corporation serving as the Executing Agency.
During his remarks in support of the resolution to borrow from the CDB, Minister of State in the Office of the Prime Minister and Member of Parliament for Mangrove Cay, Central and South Andros, Leon Lundy, framed the initiative as a continuation of the Government’s broader effort to modernise essential infrastructure and improve service delivery across the archipelago.
“At its heart, this Resolution is about responsibility,” Lundy said. “It is about ensuring that Bahamians—whether in our capital or in our Family Islands—can depend on water systems that are reliable, safe, and fit for purpose.”
He underscored that access to potable water is central to national development, noting that “access to potable water is foundational to public health, economic activity, and community stability,” while adding that when water systems fail, “the consequences are felt immediately and disproportionately by the most vulnerable.”
The total project cost for Phase II is estimated at US$46.99 million, comprising the proposed CDB loan and US$17.057 million in counterpart financing from the Government of The Bahamas and the Water and Sewerage Corporation. The funding will be applied to advance critical water supply works across Abaco, Andros, Crooked Island, Eleuthera, Rum Cay, and New Providence.
Lundy told Parliament that the initiative forms part of a deliberate, long-term strategy by the administration to strengthen essential infrastructure through what he described as “prudent borrowing, strong institutional partnerships, and disciplined execution.”
He placed Phase II within the context of earlier reforms, pointing to the results achieved under Phase I of the Bahamas Water Supply Improvement Project, which was also supported by the Caribbean Development Bank. That phase saw more than 112 miles of water mains installed or rehabilitated across New Providence and several Family Islands, addressing aging infrastructure, reducing system losses, and improving service reliability.
According to Lundy, Phase I also strengthened the institutional capacity of the Water and Sewerage Corporation through public education initiatives, climate risk assessments, and organisational reforms, demonstrating that the country can successfully execute complex, multi-island projects when appropriate governance frameworks are in place.
Phase II builds directly on that foundation. The project will finance the installation of approximately 48 miles of new water mains across New Providence, Abaco, Andros, Crooked Island, and Eleuthera. In addition, Rum Cay will benefit from 6.8 miles of new water mains and the construction of a reverse-osmosis desalination facility, a development expected to significantly strengthen water security for the island.
All infrastructure works will be designed to climate-resilient standards, reflecting the realities facing small island developing states. As Lundy told the House, “this is not infrastructure built for yesterday’s conditions, but for tomorrow’s risks—stronger storms, rising seas, and increasing environmental pressures.”
Beyond physical infrastructure, the project also includes investments in people, systems, and institutional governance. Engineering design, hydraulic assessments, procurement support, and construction supervision will be provided through specialised consultancy services to ensure quality and value for money.
Institutional strengthening measures will include the development of a Gender Policy and Operational Strategy for the Water and Sewerage Corporation, aimed at reinforcing fairness, inclusion, and a modern workplace culture.
Project implementation will be managed by a dedicated execution unit within the Corporation, supported by expertise in procurement, community engagement, environmental and social safeguards, health and safety, and monitoring and evaluation. These arrangements are designed to ensure transparency, accountability, and effective delivery at every stage of the project.
Lundy emphasised that the resolution and the CDB-financed project do not stand alone, but instead form part of the largest investment programme in the history of the Water and Sewerage Corporation. Alongside this initiative are major programmes supported by international financing institutions, including a $100 million credit facility with the Inter-American Development Bank, as well as public-private partnerships and government-funded projects across multiple islands.
Taken together, Lundy said, these investments reflect a Davis-led Government “acting with purpose, modernizing essential services, strengthening institutions, and preparing the country for the challenges ahead.”
He told Parliament that the impact of the project will be both practical and immediate, including improved water reliability for households, reduced system losses, stronger resilience after storms, and greater confidence for businesses and investors. He added that the deeper value of the initiative lies in what it signals about the administration’s development priorities.
“That this Government understands that sustainable development begins with getting the basics right,” Lundy said.
In closing, Lundy placed on record his appreciation to the Ministry of Finance, the Office of the Attorney General, the leadership and staff of the Water and Sewerage Corporation, and the Board and management of the Caribbean Development Bank for their continued partnership and confidence in The Bahamas.
“This Resolution authorizes responsible borrowing, sound contractual engagement, and targeted investment in infrastructure that directly affects the lives of our people,” he said.
