NASSAU, Bahamas (CMC) — Prime Minister Phillip Davis says the signing of a US$30 million loan with the Inter-American Development Bank (IDB) reflects his administration’s recognition of the valuable opportunities within the Blue Economy.

The funds will be used to support the small and medium-sized enterprise development of innovative and sustainable projects in the Blue Economy, with Davis saying that “this sector is filled with untapped potential, and we have targeted the vast potential within the blue economy as one of the pillars of our economic diversification strategy”.

He said capitalising on the value added from fisheries, shipping and marine biotechnology will require new strategies and partnerships to expand the production of goods and services beyond traditional exports.

“As an archipelagic nation, our beautiful waters surround our islands on all sides, representing the most abundant resource available to us. It is past time that we fully leverage these resources in innovative and sustainable ways for the benefit of our people. This project taps into our blue economy potential in several ways.”

Davis told the signing ceremony that the project provides critical investment opportunities for local entrepreneurs, adding that there is a need for private sector innovators to play a pivotal role in growing the sector.

He said in addition to providing direct financial support to businesses, this loan will fund the construction of visitor centres on selected Family Islands, and signage at tourist and historical sites.

The prime minister said that the Bahamas Agriculture, Marine and Science Institute (BAMSI) will be instrumental in executing this project and utilising project resources to improve its curriculum and other institutional activities.

“It is fitting that this project also incorporates measures and activities to lessen the impact of climate change. Our vulnerability to climate change is well known, as is our push on the world stage for greater climate action, expanded climate finance and climate justice.”

He said that climate action and adaptations must be taken into account for all major projects, not just in the maritime sector, but across all sectors and that initiatives such as mangrove and coral restoration, along with efforts to build capacity to effectively manage the Marine Protected Areas, are already underway throughout the islands.

“We look forward to seeing similar high-impact areas of focus rolled out by this project as we work toward enhancing our resilience and preserving our marine environment for generations to come,” Davis said, adding that the funds allocated for this project will be spread across three main areas.

He said the first component will provide US$17,735,000 to support small and medium-sized enterprises with small loans, grants and guarantees for developing sustainable tourism, aquaculture and mariculture initiatives.

Under the second component, US$5,050,000 is designated for BAMSI-related activities, while US$4,770,000 is allocated for the third component, which will fund ongoing activities to mitigate the effects of climate change in The Bahamas.

“With our ongoing collaboration with the IDB, and with the oversight of an effective steering committee, I am optimistic that the project goals will be achieved in a timely manner,” he added.

IDB Country Representative, Shirley Gayle, said the project will capitalise on the country’s aquatic economic resources and that “every fisherman, every conch vendor, every jet ski and boat tour operator, they all know…that the resources of the ocean support economic activities of various scales”.

“We consider it fitting, therefore, that the government and the IDB should come together to invest in the marine economy that contributes so substantially to the livelihood and way of life of Bahamians.”