WASHINGTON, United States (CMC) – The European Investment Bank (EIB) and the Barbados-based Caribbean Development Bank (CDB) Friday signed a new agreement that will provide better support for climate resilient projects across the Caribbean.

The new Procurement Procedural Framework, signed on the margins of the World Bank/International Monetary Fund (IMF) annual meetings here, will help the EIB and CDB to improve project implementation and monitoring, leading to more efficient financing for a range of climate focused investments in the Caribbean.

A statement issued here said that the initiative aligns with the continuous efforts of both banks to promote harmonization and aid effectiveness, as well as their commitment to supporting mutual reliance, streamlining procurement activities for promoters and recipients and increasing the resource efficiency of multilateral development banks’ (MDBs) procurement monitoring.

“Reaching agreement on a common procurement approach is one of the most common challenges we face when we co-finance projects with other institutions. This agreement removes this risk for projects being jointly financed by CDB and EIB, and will provide for more efficient project appraisal and project execution,” said CDB President, Dr William Warren Smith.

“The agreement is also timely, coming on the eve of the rollout, by CDB of a new procurement policy and procedures. With effect from November 2019, the new policy and procedures will be applied to new projects being financed by CDB,” he told the signing ceremony.

EIB Vice-President, Emma Navarro said small island states are particularly vulnerable to the effects of climate change and access to finance to support public sector initiatives in this area is critical.

“The new agreement today will help the EIB and CDB to improve project implementation and monitoring, leading to more efficient support for climate adaptation and resilience projects in the Caribbean. This new step in the long-term partnership with CDB confirms our commitment to delivering efficient finance for projects in the region,” she added.

The new agreement will allow the two institutions to delegate to each other procurement arrangements and monitoring in relation with jointly co-financed projects, therefore reducing the costs on promoters and strengthening partnerships.