BRIDGETOWN, Barbados (CMC) — The Barbados-based Caribbean Development Bank (CDB) on Monday signed an agreement with the Inter-American Development Bank (IDB) to support economic development and integration of the Caribbean Community (Caricom).

“Today’s signing ceremony is a re-affirmation of CDB and IDB’s shared commitment to the sustainable growth and development of the Caribbean Region. It signals that we have reached another milestone in over four decades of collaboration between our two institutions.

 “With the widening of our agreement to include IDB Invest, we are also expanding the opportunities for the regional private sector to play an even bigger and more meaningful role in improving the lives and well-being of Caribbean people,” said CDB President Dr Wm Warren Smith.

The agreement was signed at a virtual ceremony, connecting CDB and IDB headquarters in Barbados and Washington DC by videoconference.

The new agreement sets out how the two financial institutions and IDB Invest will cooperate in the financing or co-financing of projects, in order to build social, economic and environment reliance in the Region, to further inclusion and equality, and to enhance good governance and innovation. The agreement includes joint financial and advisory services and building capacity and training.

“This agreement will help the Caribbean region at a critical time, when countries face enormous challenges to transform their post-pandemic economies in order to become more sustainable and more resilient to natural disasters, and more capable of harnessing the creative energies of their people,” said IDB President Luis Alberto Moreno.

A statement issued following the signing of the new accord noted that the boosted cooperation between CDB and the IDB Group replaces a cooperation agreement from 1977 and will facilitate CDB and IDB Invest’s joint promotion of public-private partnerships.

“The private sector can play a catalytic role in transforming the Caribbean for a more sustainable tomorrow. IDB Invest has placed more local staff in common member countries and made available more financial products and services than ever before, highlighting our commitment to provide solutions and technical excellence in the Caribbean.

“This CDB partnership only strengthens our relationship and ability to support the private sector and reignite growth,” said IDB Invest Chief Executive Officer, James P Scriven.

The statement said that by harmonising policies and procedures for the procurement of goods, works, and services, the new agreement also increases efficiency gains to be passed on to project beneficiaries, in the form of reduced transaction costs.