The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The entire Bahamian population will benefit from a $65.2m project that is targeting “a transformation in the country’s water security” against climate change perils after major international donors approved the necessary funding at the weekend.

The Green Climate Fund (GCF), which was established to provide developing countries with financing for climate change adaptation and mitigation, is set to provide The Bahamas with some $50m - more than $37m of which is grant funding - for an initiative that aims to both protect this nation’s “vulnerable freshwater resources” and modernise critical infrastructure against threats such as sea level rise, global warming and more frequent and devastating hurricanes.

The grant funding, which will account for almost half the monies needed by the ‘Climate resilience of the water sector in The Bahamas’ project, is especially significant given that it represents one of the few occasions this nation has been able to access such financing sources. The Bahamas, because of its relatively high per capita income and other economic indicators, has frequently been unable to access grants - where typically the money does not have to be repaid - because it is viewed as a developed state.

Besides the grant, the Green Climate Fund is also providing The Bahamas with a $12.546m “concessional loan” - signalling that the interest rate and repayment terms are more generous than a commercial credit facility. The balance of financing for the project, which has been almost seven years in development after first being conceived in June 2019, is set to come from a $12.546m Caribbean Development Bank (CDB) loan and $2.602m “in-kind contribution” from the Water & Sewerage Corporation,

Robert Deal, the Water & Sewerage Corporation’s general manager, and his staff, in response to Tribune Business inquiries, yesterday said all Bahamians and residents will benefit from the initiative regardless of whether they are customers of the state-owned utility. They added that the project, which is expected to last seven years, is set to launch in the 2026 fourth quarter provided that all financing agreements have been executed.

Among the key objectives is the implementation of climate-resilient upgrades to Water & Sewerage infrastructure, “including improvements to wellfields, strengthened distribution systems, increased storage and reduced water losses”, which the Corporation pledged will result “in a more reliable, efficient and sustainable water supply system”.

Mr Deal and his staff affirmed that these upgrades will directly benefit 54 percent of The Bahamas’ total population, or the 215,273 persons who currently receive Water & Sewerage supply at home or work, via “more reliable” service, reduced risk of salt water intrusion through better-designed wellfields, improved storage capacity and fewer system leaks and losses.

And, not to be left out, the Water & Sewerage Corporation chief and his team asserted that the remaining 199,727 Bahamas residents, equal to 46 percent of the population, will enjoy indirect benefits from strengthened water industry governance and improved planning surrounding the management of this nation’s natural resources.

Project documents obtained by Tribune Business disclose that the targeted infrastructure upgrades include improvements to 34 groundwater systems and 23 wellfields in the Water & Sewerage Corporation’s existing “asset base”. There are also plans to “raise the elevation” of this infrastructure by between 0.5 metres to 1.5 metres so as to better protect them from hurricane-driven storm surge and wellfields being inundated by salt water that renders them unusable.

The project will also finance “the burial” of all water pipes and electricity sub-station connections to Water & Sewerage Corporation infrastructure so as to better protect them from hurricane wind damage, as well as the installation of back-up generators; pressure tanks; flow meters and “fire breaks” around Andros and Abaco pumping stations that provide a “20-metre stand-off”.

Besides covering Andros from north to south, the Green Climate Fund-financed initiative is also targeted primarily at New Providence, Abaco and Acklins. Mr Deal said it will also “enhance the Water & Sewerage Corporation’s financial sustainability” by slashing operating costs, improving efficiency and enhancing investment planning.

“The objective of this project is to enhance the resilience of the water sector in The Bahamas to safeguard the country’s water security in a changing climate,” the original project concept document, submitted in 2020, asserted. “The successful implementation of these components will enable a transformation towards a climate-resilient water sector in The Bahamas… The Bahamas must urgently enhance the resilience of its water sector to safeguard its water security in a changing climate.”

The Green Climate Fund itself also described The Bahamas’ water supply infrastructure as being especially vulnerable to storm surges and run-off flooding given that “83 per cent of the country’s land area is below five metres above sea level. The Bahamas relies heavily on desalination plants, accounting for 81 per cent of the water produced”.

Mr Deal and his team, responding to this newspaper’s inquiries, confirmed: “This project is critical to future water infrastructure development in The Bahamas because it establishes scalable, climate-resilient designs and upgrades that can be replicated across islands, setting the standard for how systems are expanded and modernised.

“By strengthening wellfields, protecting groundwater sources reducing water losses and improving system resilience, the project directly safeguards the reliability and sustainability of potable water supply across the islands.

“By integrating improved monitoring, data systems,and climate risk–informed planning, it ensures that all future infrastructure investments are evidence-based, cost-effective and built to withstand long-term climate impacts.*

The original project concept paper admitted that the Water & Sewerage Corporation is struggling financially, relying on annual taxpayer subsidies expected to hit $48m during the current 2025-2026 Budget year before further increasing to $52m in the upcoming two fiscal years, with non-revenue water - representing water lost from the utility’s network due to leaks before reaching the end-consumer - costing as much as 30-60 percent of total supply on many islands.

“The Water & Sewerage Corporation is already struggling to generate sufficient revenue to cover its capital needs and operating costs, which are particularly high due to the dispersed nature of the water system across multiple islands,” the paper warned.

“Climate change will further reinforce these challenges, increasing the need for new infrastructure while also increasing the costs of maintaining, repairing and replacing existing infrastructure. Meanwhile, the central government also has limited fiscal space to cover such costs. The repeated impacts of Category Five hurricanes in 2017 and 2019 (Irma and Dorian) required significant public investment for post-disaster response, recovery and redevelopment.”

Mr Deal and his staff, though, said the $65.2m project - which is set to launch in the 2026 fourth quarter and last for seven years - will ultimately boost the Water & Sewerage Corporation’s financial prospects as well as its infrastructure. “The project will significantly strengthen the reliability, resilience and efficiency of the Water & Sewerage Corporation’s infrastructure,” they asserted.

“Upgrades to wellfields, pumping stations, storage systems and distribution networks will make them more resistant to hurricanes, flooding and drought, reducing service disruptions and recovery time after extreme events. At the same time, improved groundwater management, expanded wellfield, and water loss reduction measures will increase sustainable water supply while lowering dependence on costly desalination.

“Together, these improvements will enhance operational performance, reduce system losses and ensure a more consistent and secure water supply across the islands,”they added. “In parallel, the project will enhance the Water & Sewerage Corporation’s financial sustainability, planning capacity and long-term adaptability.

“Lower operating costs, improved efficiency and strengthened regulatory frameworks will support better cost recovery and more sustainable investment planning. The introduction of advanced monitoring systems, a national decision support platform and a dedicated water resources management unit will enable data-driven decision-making and proactive climate risk management.

“With strengthened institutional capacity, clearer policies and trained staff, the Water & Sewerage Corporation will be better equipped to plan, invest in and operate climate-resilient infrastructure well into the future.”

Water & Sewerage Corporation customers, Mr Deal and his staff added, will “experience more reliable access to potable water, particularly during climate-related shocks such as hurricanes and storm surges, and stresses like drought and sea level rise.

“Improvements to wellfield design and operation will reduce salinity risks, while climate-proofed infrastructure, increased storage capacity and reduced leakage will ensure more consistent supply, faster recovery after disruptions and overall improved service quality,” they said.

Non-Water & Sewerage customers, meanwhile, “will benefit from strengthened national systems that support sustainable water management. Through improved policies, legislation and regulatory frameworks, as well as the establishment of the Water Resources Management Unit and decision support system, the entire population will gain from better planning, co-ordination and climate risk-informed decision-making,” Mr Deal and his staff pledged.

“These reforms will enhance the efficiency, sustainability and governance of the water sector, ensuring that future water resources and infrastructure are managed more effectively, ultimately contributing to improved public health, well-being and national water security.”