KINGSTON, Jamaica, Jun 15 2016 – The Inter-American Development Bank (IDB) has approved an operation to enable investments in efficient water technologies and practices in newly built housing in Jamaica.
The project will promote related business opportunities and entrepreneurship in climate resilience and improve the conservation of water throughout the country. The project will use a US$5.75 million loan funded by resources from the Pilot Program for Climate Resilience (PPCR), one of three programs under the Strategic Climate Fund – a funding window under the Climate Investment Funds, together with non-reimbursable financing for technical assistance (US$1,139,400, including local counterpart resources) from the Proadapt Program of the Multilateral Investment Fund, a member of the IDB Group. Proadapt is co-financed by the Nordic Development Fund (NDF).
Drought and shifting patterns of rainfall are affecting water prices across Jamaica and aggravating the strain on the water supply, which along with other constraints has led to periodic water service interruptions. This project, by demonstrating the market for greater water efficiency in Jamaica, will contribute to greater conservation of this resource in housing.
The borrower of the loan is the Jamaican National Building Society (JNBS), the largest mortgage granting institution in the Caribbean Basin. The Jamaica National Foundation, a member of the JNBS Group and a non-profit foundation that promotes social and sustainable development, is the executing agency for this operation. JNBS will on-lend PPCR resources to housing developers and construction companies for water efficient products and measures. The investments financed will improve water availability and reduce the risk of water disruptions during increased periods of drought that result from climate change. Investments will also yield economic co-benefits by reducing household water bills.
The grant resources provided by the Multilateral Investment Fund and the Proadapt program support technical assistance activities aimed at complementing the loan interventions and will focus on
- providing the business and financial cases of water efficiency in companies and households;
- building local capacity in water adaptation measures;
- supporting a climate resilience entrepreneurship program; and
- raising awareness of the opportunities presented by water efficiency for local businesses, financial institutions, civil society and the Government of Jamaica.