WASHINGTON, (CMC) – The Inter-American Development Bank (IDB) says it has approved an US$80 million loan to enhance the resilience and sustainability of transport infrastructure and mitigate socio economic disruptions caused by recurrent flooding in New Providence in The Bahamas.

It said this operation will finance a Global Multiple Works (GOM) programme to increase the resilience of key transport corridors by improving drainage systems and optimising the effectiveness and efficiency of road maintenance.

The Washington-based financial institution said that the programme is aligned with One Caribbean, the IDB Group’s comprehensive regional approach to promoting sustainable development in the Caribbean and Small Island Developing States.

It is also aligned with Ready and Resilient Americas, an IDB Group regional impact programme designed to enhance and boost resilience to disasters in Latin America and the Caribbean (LAC).

More than 296,000 residents of New Providence will directly benefit from improved mobility -especially under adverse weather events- as well as   the millions of tourists who visit the island annually. The country’s 398,000 inhabitants will indirectly benefit from a stronger economy driven by enhanced productivity and optimised public spending on road maintenance.

The IDB said flood events in New Providence often result in significant socioeconomic disruption. Roadways become inundated when the drainage systems reach capacity and stormwater accumulates, rendering roads impassable, constraining mobility, disrupting access to essential services, economic activity and accelerating road deterioration.

The programme will result in the design and implementation of sustainable and resilient flood-mitigation and stormwater-management infrastructure in selected transport corridors, including primary urban road networks, main thoroughfares, and residential community roads.

Additionally, it will support the implementation of the Ministry of Works and Family Island Affairs´ asset-management system- update quality standards and specifications for road construction and maintenance -including drainage systems; and promote universal accessibility standards for streets.

The US$80 million loan has a repayment term of 25 years, a grace period of 5.5 years and an interest rate based on the Secured Overnight Financing Rate (SOFR).