Bridgetown, Barbados, January 24,
2014 – IFC, a member of the World Bank Group, today signed a
Memorandum of Understanding with the Caribbean Development Bank (CDB) to
support public-private partnerships that are crucial to building better
infrastructure in the Caribbean.
Well-structured public-private partnerships
-- agreements between governments and firms to provide infrastructure and
public services -- leverage the expertise and capital of the private sector
to enhance the quality and efficiency of the public sector. The Memorandum
of Understanding between IFC and CDB establishes close cooperation between
these two institutions to advise Caribbean governments at the national
and sub national levels in the development of new infrastructure projects
with private participation.
“In the face of fiscal challenges,
public-private partnerships have become an important tool to help governments
work with the private sector to meet the needs of their communities,”
said Kirk Ifill, IFC Resident Representative for the Southern Caribbean.
“This collaboration between IFC and CDB opens up exciting opportunities
and allows IFC to share its considerable international experience.”
Under the memorandum, IFC and CDB would
collaborate in a variety of areas, including helping to conduct due diligence,
identify suitable private sector partners and structure projects with government
authorities to ensure a transparent and competitive bidding process. Renewable
energy, education, transportation, and water and sanitation projects are
the focus of cooperation, though the memorandum does not exclude other
Dr. William Warren Smith, President
of the Caribbean Development Bank said, “CDB is pleased to collaborate
with IFC on this initiative. By encouraging and supporting cooperative
ventures between the public and private sectors, we are also promoting
a strategic response to economic growth and job creation - two major development
concerns for this region”.
This initiative is supported by the
Department of Foreign Affairs, Trade and Development Canada (DFATD), which
has been an important partner in providing financial support for IFC’s
work in the Caribbean. The intent is to leverage DFATD funding, alongside
other donor funding mobilized by CDB and IFC, to promote public-private
partnerships in the Caribbean.
“There is tremendous potential in the
Caribbean. By working with IFC and CDB, we can help support efforts to
unleash economic growth,” said Mark Mostovac, Counsellor (Development)
and Deputy Director of Operations for DFATD’s Caribbean Program. “The
goal is to leverage the private sector to help foster development by providing
infrastructure, improving efficiency and lowering the cost of service delivery
in the Caribbean.”
Since 2000, IFC has committed $2.1 billion
in the Caribbean, including $515.8 million in mobilization. IFC supports
public-private partnerships in energy, transport and logistics infrastructure.
We also implement programs to improve the business climate, build skills
of local entrepreneurs, and promote access to finance. Our Caribbean strategy
focuses on promoting job creation and inclusive growth; helping the private
sector respond to the global financial crisis; supporting innovation, competitiveness
and regional integration; and providing investments that help companies
adapt to and mitigate the effects of climate change. We have offices
in Trinidad, Jamaica, Haiti, and the Dominican Republic serving 14 countries
across the Caribbean.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit
The Caribbean Development Bank (CDB)
is an international organisation established to contribute to the harmonious
economic growth and development of its member countries and whose mission
is to be the leading catalyst for development resources into the Caribbean
Region, working in an efficient, responsive and collaborative manner with
its member counties and other development partners, towards the systematic
reduction of poverty in their countries through social and economic development.
For more information, visit www.caribank.org
Department of Foreign Affairs, Trade
and Development Canada (DFATD) is Canada's lead agency for development
assistance. DFATD's aim is to manage Canada's support and resources
effectively and accountably to achieve meaningful, sustainable results
and engage in policy development in Canada and internationally, enabling
Canada's effort to realize its development objectives.