Critical Water Scarcity Poses Threat to the Caribbean, according to CAF study.
Bank convenes meeting of regional stakeholders to develop urgent roadmap
[Bridgetown, Barbados. April 12, 2025] – A new comprehensive study conducted by CAF – Development Bank of Latin America and the Caribbean has provided more detailed analysis of the water security challenges facing Barbados and the Eastern Caribbean. The study has highlighted gaps in water access, efficiency, and infrastructure, and recommends immediate investment in innovative solutions to mitigate the impact of climatic changes and growing resource demands, particularly from expanding industries which are deemed critical for economic growth.
To develop an actionable roadmap for addressing these challenges, CAF convened a High-Level Technical Workshop on Water and Sanitation in the Caribbean in Bridgetown, Barbados, on April 8-9, 2025, bringing together the CEOs, General Managers and other senior officials from national water and sanitation authorities as well as representatives from other multilateral development institutions, to discuss the findings of the study and explore solutions to the urgent water security challenges facing the region. The workshop titled Water and Sanitation in the Caribbean: Working Together to Overcome Challenges and Chart a More Resilient and Sustainable Sector facilitated knowledge exchange, examined opportunities for innovative financing solutions, and agreed on a series of practical next steps to address water scarcity, infrastructure challenges, and strengthen climate resilience in the Caribbean’s approach to water and sanitation management.
In addition to the senior officials from water management agencies across the English-speaking Caribbean, CAF convened leaders and sector specialists from multilateral development agencies, including the Caribbean Development Bank (CDB), CARICOM Development Fund (CDF), Inter-American Development Bank (IDB), World Bank, and the European Union (EU) and invited them to join forces with CAF in tackling one of the region’s most pressing challenges. CAF’s Regional Water Diagnostic Study draws its findings from data on the following countries: Anguilla, Antigua and Barbuda, Barbados, British Virgin Islands, Dominica, Grenada, Guadeloupe, Martinique, Montserrat, Saint Kitts & Nevis, Saint Lucia, Saint Vincent and the Grenadines. However, many of the challenges are similar for countries of the wider CARICOM region, warranting a regional approach to achieve water security.
Among the key findings of the report, are:
- Several Caribbean nations suffer from significant water scarcity, while others face absolute water scarcity, signalling a critical need for alternative water sources.
- Despite water shortages, the study found that many countries are losing nearly half of their available water due to outdated infrastructure and inefficiencies.
- Sewerage infrastructure remains underdeveloped across the region, with an average coverage of just 11%. Many countries lack proper wastewater treatment, with untreated sewage being discharged into the sea.
- The study highlights stormwater drainage as a growing regional concern due to the increasing frequency and intensity of extreme weather events. It proposes that traditional grey infrastructure needs to be supplemented with green and nature-based solutions to prevent further damage to infrastructure, agriculture, and livelihoods.
CAF’s Regional Diagnostic Study emphasizes the need for policy reforms, technological advancements, and critical financial investments to ensure the region’s ability to access water for its various needs. The study recommends solutions such as desalination, rainwater harvesting, wastewater reuse, and automated water management systems are prioritised.
Dr. Stacy Richards-Kennedy, CAF’s Regional Manager for the Caribbean and Country Representative in Barbados said the bank is committed to supporting the Caribbean with flexible and agile solutions to addressing its water and sanitation challenges. “At CAF, we understand the widespread impact of these challenges across the society and the ripple effects across businesses and the economy. To us, issues such as water security, are not abstract technical issues, they are personal – they affect the ability of individuals to meet their basic needs and live life with dignity. Tackling water scarcity requires that we come together and act with a sense of urgency. CAF is about providing innovative solutions, working always in an agile and flexible manner to help the region meet its development priorities,” she stated.
Senator Dr. the Hon. Shantal Munro-Knight, Minister in the Prime Minister’s Office of Barbados, underscored the financing challenge in water security in the region, and the need for innovative financing models to address this. She thanked CAF for its ability to respond to the specific needs of shareholder countries. “We need good partners to be able to meet that financing challenge. To address the challenges we face with water insecurity, we need partners that offer tailored solutions. We need partners that allow us to imbue a sense of ownership in terms of forging the solutions that are going to be necessary. We need partners that offer simple ways and modalities of allowing us to work together.”
She said, “CAF has been a partner for us across many sectors—water, infrastructure, and trade. But one of the things we value in our relationship with CAF is their ability to immediately respond to our needs, not what they believe they want, but respond to exactly what it is that we have asked for.”
Franz Rojas, Director of Water and Sanitation, CAF, said there was an urgent need for increased investments to strengthen capacities and bold solutions to combat water scarcity and climate change. “CAF brings decades of experience supporting countries across Latin America and the Caribbean in building sustainable, inclusive, and climate-resilient systems. This initial diagnostic is just the beginning as we plan to deepen this analysis. Aligned with CAF’s Water Security Strategy and our recent commitment at the UN Water Conference in New York to provide financing of up to USD 4 billion, we are truly committed to collaborating closely with the Caribbean to build water security.”
The workshop was attended by senior officials from water management agencies and utilities from 12 CARICOM countries. The complete study will be published on CAF’s website.
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