NASSAU, BAHAMAS- The Inter-American Development Bank (IDB) has approved $100 million in funding, including an initial $50 million loan, to improve water supply and sanitation services in The Bahamas.
The Inter-American Development Bank (IDB) approved a Conditional Credit Line for Investment Projects (CCLIP) of $100 million, with a first loan of $50 million, to upgrade potable water supply and sanitation services in The Bahamas.
The program, approved by the IDB’s Board of Executive Directors, focuses on expanding potable water service coverage in the Family Islands and New Providence and enhancing sanitation service reliability in New Providence. It also aims to improve the operational and financial performance of the Water and Sewerage Corporation (WSC) and strengthen governance in the water and sanitation sector.
The initial loan will benefit 65,000 households—48,103 in New Providence and 16,897 in the Family Islands—by improving access to drinking water services. Additionally, 10,493 households in New Providence will gain more reliable sewerage collection services.
The expansion of potable water supply will directly benefit 573 households (1,530 people) in the Family Islands and 645 households (2,400 people) in New Providence.
According to a statement from the Inter-American Development Bank (IDB), the entire Bahamian population will benefit indirectly from the program through strengthened policy-making capacity, improved governance and operational efficiency at the Water and Sewerage Corporation (WSC), and enhanced resilience in access to drinking water due to more efficient usage.
The WSC’s main challenge is achieving operational, financial, and environmental sustainability in providing water and sanitation services. Key factors contributing to these issues include low performance, high levels of non-revenue water, and weak governance in the sector.
To address these challenges, the program will fund initiatives to reduce non-revenue water in the Family Islands. These include establishing District Metered Areas and Pressure Management Areas, managing seepage and pressure, procuring 65,000 ultrasonic smart meters to replace mechanical meters, and advancing WSC’s digital infrastructure.
The program will also increase piped potable water coverage in underserved communities in New Providence and the Family Islands, incorporating climate change resilience and natural hazard considerations. Additionally, it will support urgent sewerage system upgrades in New Providence.
Other key initiatives include strengthening the institutional capacities of the Utilities Regulation and Competition Authority (URCA), WSC, and the Department of Environmental Planning and Protection (DEPP). It will also finance efforts to improve WSC’s corporate governance and develop a national water and sanitation policy.
The first $50 million loan under the CCLIP has a 25-year repayment term, a seven-year grace period, and an interest rate tied to SOFR.
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