BRIDGETOWN, Barbados (CMC) – The Barbados-based Caribbean Development Bank (CDB) on Monday said that its flagship special development fund (SDF) has garnered strong regional and international support, with partners stepping up their commitments for the renewal of the financing facility.
It said that the new 11th cycle (SDF 11) will run from 2025 to 2028.
The SDF, which represents the CDB’s largest pool of concessional financing, plays a critical role in reducing poverty and advancing human development across its Borrowing Member Countries (BMCs).
The CDB said that contributors have approved a US$460 million programme for SDF 11, representing a significant increase over the US$383 million for the 10th cycle, which concluded in December 2024.
Canada, the top contributor, has reaffirmed its commitment with a pledge of CAD $81.4 million (US$59.9 million). Regional support has also surged, with several BMCs increasing or maintaining their contributions for the new cycle.
Among them are Jamaica and Trinidad and Tobago, which have pledged US$16.5 million and US$11.3 million, respectively, while the Bahamas and Guyana will each provide US$9.2 million.
The CDB said other BMCs have also stepped up with enhanced pledges, reflecting a united front in advancing the region’s development agenda.
Similarly, international and regional partners continue to play a vital role. China has pledged US$6.9 million, and Brazil announced a five-million US dollar allocation at the Brazil-Caricom summit held last month in Brasília. In the case of China and Guyana, pledges are subject to adjustment.
“At a time of global uncertainty and economic headwinds, the commitment of our partners speaks volumes. Many have increased their contributions over the last cycle, demonstrating real confidence in the region’s potential and in the results we can deliver together,” said CDB President Daniel Best.
“The Caribbean’s development needs are urgent. People across the region face food insecurity, outdated infrastructure, education gaps, escalating climate risks, and fragile energy systems every day. There is no time to waste. These funds will be deployed rapidly and effectively to help address these pressing challenges.”
The CDB said that SDF 11 will focus on building a more resilient and sustainable Caribbean and that the key priorities include environmental resilience, with at least 35 per cent of funding earmarked for climate action, including sustainable energy, adaptation and mitigation, disaster risk management, and post-disaster recovery.
It said another priority is institutional resilience with emphasis on strengthening implementation capacity in BMCs to accelerate and improve project execution, while social resilience will target interventions designed to enhance social protection, education and training, food security, water and sanitation, and citizen security. Also, the Basic Needs Trust Fund, CDB’s flagship poverty reduction initiative, will continue to receive support.
Production Resilience is to be mainly achieved through promoting private sector development and investing in resilient infrastructure to boost economic competitiveness and sustainability is another key priority, with the CDB indicating that SDF 11 will also provide targeted assistance to Haiti, aimed at maximising development impact and fostering long-term resilience.
The CDB said that since its inception in 1984, the SDF has invested more than US$2.1 billion in Caribbean social development.
It said between 2013 and 2022, SDF-financed projects enhanced education for more than 343,000 students, trained over 11,000 agricultural stakeholders in modern production technologies, improved road networks benefiting nearly 932,000 people, and provided more than 94,000 households with access to safe water and sanitation services.