The World Bank has approved the Barbados Water Security and Sector Performance Program, a US$54.7 million initiative designed to strengthen water security and improve sector performance in one of the world’s most water-scarce countries. Barbados relies on groundwater for 86 percent of its supply, but extraction levels are already near the safe limit, while demand is expected to rise by 30 percent by 2050. The Barbados Water Authority currently loses about half of all water produced due to leaking pipes, inaccurate meters, and billing gaps, while untreated sewage threatens groundwater and coastal ecosystems critical to tourism and jobs.
The program will modernize the operations of the Barbados Water Authority by partnering with the private sector to improve billing, metering, and reduce losses. It will also expand sanitation services, adding 2,000 new household sewage connections and introducing regulations for safe waste collection and treatment. In addition, it will strengthen governance by establishing a national groundwater monitoring system and a high-level coordination body to link water management with agriculture, energy, and climate planning.
According to the World Bank, the program is expected to generate and protect up to 58,000 jobs over its lifetime by improving utility operations, expanding sanitation, and enhancing water governance. It represents the first phase of the Caribbean Regional Water Security Program, which will also cover Dominica, Grenada, Jamaica, and Saint Lucia.
The financing package includes a US$4.7 million grant from the IBRD Surplus-Funded Livable Planet Fund and US$50 million in financing from the International Bank for Reconstruction and Development. Using a Program-for-Results approach, funds will be released only when independently verified outcomes are achieved, such as reduced water losses, improved customer service, and completed regulatory reforms. The Barbados Water Authority will implement the program over five years.
