Bahamas to Upgrade Potable Water Supply and Sanitation Services with IDB Support

The Inter-American Development Bank (IDB) approved a Conditional Credit Line for Investment Projects (CCLIP) of US$100 million and a first individual loan of US$50 million under this credit line to upgrade potable water supply and sanitation services in the Bahamas.

The program approved by the IDB's Board of Executive Directors aims to improve potable water services coverage in the Family Islands and New Providence, and sanitation services reliability in New Providence. In addition, it will improve the operational and financial performance of the Water and Sewerage Corporation (WSC), its governance and that of the water and sanitation sector.

The first individual loan will directly benefit 65,000 households (235,000 people), 48,103 in New Providence and 16,897 in the Family Islands, with improved provision of drinking water services, while 10,493 households in New Providence will benefit from improved access to reliable sewerage collection services.

In addition, 573 households (1,530 people) in the Family Islands and 645 households (2,400 people) in New Providence will benefit from the expansion of potable water supply coverage.

Moreover, the entire Bahamian population will benefit indirectly from the strengthening of the sector's policy-making capacity and regulatory framework, WSC improved governance and operational efficiency, and greater resilience in access to drinking water through improvements in the efficiency of its use.

The main problem facing the Water and Sewerage Corporation is to achieve operational, financial and environmental sustainability in the provision of water and sanitation services. The most important determinants of this situation are low operational and financial performance, high levels of non-revenue water, and weak sector governance.

To address these challenges, the program will finance actions to reduce non-revenue water in the Family Islands, including setting up District Metered Areas and Pressure Management Areas, seepage and pressure management, the procurement of 65,000 ultrasonic smart meters to install new and replace existing mechanical meters, and advance to effectively implement WSC´s digital infrastructure.

It will also support an increasing coverage of piped, potable water to unserved
communities in New Providence and the Family Islands, including considerations for resilience to climate change and natural hazards, as well as urgent investments in the sewerage system in New Providence.

Additionally, among other activities the program will finance the institutional strengthening of Utilities Regulation and Competition Authority (URCA), WSC and the Department of Environmental Planning and Protection (DEPP), and activities to improve WSC corporate governance and develop a national policy for Water and Sanitation Sector.

The first individual loan of US$50 million under the CCLIP has a repayment term of 25 years, a grace period of seven years, and an interest rate based on SOFR.