Business

Government of Barbados announced at the Summit for a New Global Financing Pact

The Government of Barbados forms a coalition of multilateral banks and organizations to develop resilient infrastructure and to drive new social and nature capital investments, building on its Resilience and Sustainability Facility at the IMF.

The Government of Barbados announced at the Summit for a New Global Financing Pact in Paris an integrated package of innovative initiatives to accelerate its transition to net zero, boost resilience, enfranchise workers, and draw in private sector investment while prudently managing public debt levels. These initiatives build on the ongoing climate policy reforms, supported by the Resilience and Sustainability Facility with the International Monetary Fund, which are expected to play a catalytic role in mobilizing private and public sector financing for climate projects.

This package of initiatives reflects unprecedented cooperation and a new “system approach” between the Government, its Resilience and Sustainability Facility (RSF) at the International Monetary Fund (IMF) and Barbados’ long-standing financing partners; Inter-American Development Bank (IDB), World Bank Group (WBG), Development Bank of Latin America and the Caribbean (CAF), European Investment Bank (EIB), and Green Climate Fund (GCF).

Barbados is highly vulnerable to the impacts of climate change, and it needs to invest heavily to protect its citizens from hurricanes, flooding and droughts, and to preserve its natural capital. It is committed to achieving sustainable public debt levels, meaning that the government has limited borrowing capacity for public investments. To meet these challenges, it has identified four complementary approaches together with its financing partners.

A New Blue Green Bank

In a first of its kind, the Government of Barbados has decided to use US$10 million from the fiscal space created by the RSF as capital for a new Blue Green Bank.

This capital will support five times that lending amount. It will pave the way for other partners, including GCF, CAF and IDB, to support the Blue Green Bank through technical support or capitalization, with GCF proposing to its Board in July to become a co-founding partner in the bank.

Once established, The Blue Green Bank will help finance over US$250 million of green investments in affordable homes, hurricane-resilient roofs, the electrification of public and private transport, and other Paris-aligned investments.

More Resilient Infrastructure Through New Low-Cost, Long-Term Loan Instruments from Development Finance Institutions

Low-cost and long-term financing instruments from the EIB, CAF, IDB, GCF and RSF will support Government investment in resilient water and waste treatment infrastructure, flood and coastal protection and support its efforts to transform state owned enterprises and enfranchise workers.

The EIB has made available US$18 million of grants from the European Union (EU) to support climate-resilient water, sanitation, and clean ocean projects across the Caribbean to back a US$165 million loan facility.

The GCF will offer up to US$1.5 million in grants per project for end-to-end project preparations, innovation, and transformational impact, and to prepare investment proposals for further GCF funding.

Better and More Affordable PPPs

Barbados’ multilateral financing partners will strengthen project preparation support to attract private investment in Private Public Partnerships (PPP) to build more resilient infrastructure. The IDB will support and help develop the Government’s capacity and expertise in PPPs.

The World Bank Group’s Multilateral Investment Guarantee Agency has made available investment guarantees to help reduce the cost of private sector financing.

The World Bank Group’s International Finance Corporation will support Barbados in developing the first large-scale onshore wind project in the country and enhance the resilience of the grid.

Developing New Non-Debt Investments in Nature and Social Capital

The Government of Barbados is working with its development partners to build on the success of the 2022 Blue Bond with IDB and The Nature Conservancy, which released approximately US$50 million of new financial resources for marine conservation. Particular focus is on a new generation of instruments to support investments in nature and social capital.

Together, these initiatives will help Barbados meet its resilience objectives and protect its citizens, whilst helping transform the economy and protect its pristine natural environment.

Quotes

Prime Minister Mia Mottley of Barbados commented, “Alongside new capital, innovative instruments, partnerships and new ways of working together are critical if we are to overcome the challenges posed by climate, pandemics and debt. These new, integrated, initiatives announced today are embodiment of what can come out of new cooperative ways of working together.”
Kristalina Georgieva, Managing Director of the International Monetary Fund, said, “We welcome Barbados’ initiatives to catalyze private climate finance, and the related push to bring together multiple partners in pursuit of a common goal. The Fund is fully committed to supporting our members’ efforts to meet their climate goals—including through the Resilience and Sustainability Facility – and we look forward to our continued partnership with Barbados as the government takes steps to green the economy.”
Ilan Goldfajn, President, Inter-American Development Bank Group, said, “The IDB has long been one of Barbados’ closest and most committed development partners. We are delighted to take advantage of this opportunity to collaborate with the IMF and other partners to build on our successful recent blue bond issuance, and promising experiences across the region with project preparation and structuring to help catalyze new and larger volumes of private financing for resilient climate smart investment. These and other innovative financing and support mechanisms will be crucial to help Barbados meet the challenges of a rapidly changing climate.”
Sergio Díaz-Granados, Executive President of CAF asserted that as a home-grown development bank owned by the countries Latin America and the Caribbean, CAF understands the myriad challenges faced by small islands, like Barbados, as a result of the effects of climate change. “CAF is committed to doing its part in channelling increased resources and is very pleased to join forces with other development partners to mobilize dedicated financing that will help to strengthen the resilience of our member countries.”
Werner Hoyer, President of the European Investment Bank, commented that, “We have no time to lose to support countries like Barbados that are already facing the devastating consequences of climate change. Following Prime Minister Mia Amor Mottley’s call to action, we are delivering swift and targeted support. We will start offering extended loan tenors to lower and middle-income countries, and are seeking to provide natural disaster risk clauses in our loans to ensure the most vulnerable communities can recover and rebuild following a crisis. As the EU Climate Bank, alongside our Team Europe partners, the EIB is constantly working to increase the impact of its climate lending and support for vulnerable countries like Barbados.”
Henry Gonzalez, Executive Director ad interim of the Green Climate Fund stated, “The Blue Green Bank will transform the financing landscape in Barbados and catalyse new finance for sustainable climate investments. GCF has provided technical and financial support in developing the concept, and our Board will consider making a substantial investment in the new Bank at its meeting next month.” (PR/GIS)
Makhtar Diop, IFC Managing Director, said, “Barbados is redoubling efforts to bolster its climate resilience and become a low-carbon leader. IFC will continue to work closely with the country and collaborate with other multilateral institutions to accelerate the flow of private capital in support of Barbados’ ambitions.”

Business

GAIA Marks A Historic Milestone With 54 Flights In One Day

The Grantley Adams International Airport (GAIA) and the tourism industry marked a historic milestone on Saturday, December 21, with the arrival of 54 flights.

Minister of Tourism and International Transport, Ian Gooding-Edghill, who was present for the arrival of the inaugural Delta Saturday-only flight out of John F. Kennedy’s Airport, stated that from the 54 flights, approximately 8,000 passengers would have arrived on the island, with 2,200 of those passengers being air-to-sea transfers.

Mr. Gooding-Edghill noted that the milestone proved that the efforts of the Ministry and the Barbados Tourism Marketing Inc.’s (BTMI) airlift strategy had been successful and gave a breakdown of the type of aircraft that landed at GAIA.

“Our airlift strategy has been successful in getting more airlift and visitors to Barbados…. Today is also a very historic day for the Grantley Adams International Airport. I must tell you that today this airport will witness 54 flights, 15 wide body flights, 15 narrow bodies, and 24 regional,” Minister Gooding-Edghill said.

He expressed thanks to the staff of the Ministry, the BTMI, those in the aviation sector, tourism stakeholders, and notably, BTMI’s Director for the USA, Peter Mayers.

“Let me also thank the wonderful team that is the Barbados Tourism Marketing Inc.’s wonderful team that they have based in the United States of America. It is this team that journeyed with us and helped us when we were negotiating with the airlines to achieve the success that we are achieving with our airline strategy. It is the team led by our Director, Peter Mayers.

“Peter, I want to say thank you, not only on the behalf of the Barbados Tourism Marketing Inc., not only on behalf of the Ministry of Tourism but certainly on behalf of the Government and the people of Barbados, for your continuing service excellence and your dedication to the development of Barbados as a tourism destination, I really want to say that to you,” the Tourism Minister stated.

He noted that the increase in airlifts was reflected in the statistics regarding visitor arrivals when compared to 2019. “Another very interesting statistic is that the Grantley Adams International Airport is projecting to have 2.35 million passengers by the end of this calendar year. This is certainly up from the 2019 figure, which I’m advised, was 2.29 million passengers,” Mr. Gooding-Edghill reported.

The Minister added that the Ministry intends to ensure that more airlift comes to the island from the United States and Europe.

Also giving an update on the operations at the GAIA was its Chief Executive Officer, Hadley Bourne. He shared that one of the initiatives to enhance the experience at the airport was the operationalisation of the Concorde Experience.

“So, we would have heard the Minister speak about his tourism strategy and growth that we are seeing in all the various markets and even on the air-to-sea side, and one of those pretty good initiatives that we would have also engaged in to enhance the overall experience at the Grantley Adams International Airport is the opening of the Concord experience.

“It’s been open now roughly six weeks, and we’ve been having fantastic feedback from all stakeholders, whether it be the passengers or the cruise personnel, and even local stakeholders. And on any given Friday or Saturday, there’s a throughput through that facility in excess of 1,500 passengers. This takes a significant load off the main terminal, which allows for the Minister to then exceed his commercial activity and that is just one of the initiatives that we’ve seen. Because for us, customer experience is key to maintaining and keeping the tourism product that we are promoting,” Mr. Bourne stated. (PR/GIS)

Business

Trust Fund Ltd. To Launch New Initiative Early Next Year

The Barbados Trust Fund Limited (BTFL) will launch a new initiative early next year to empower its clients in the services sector.

General Manager of the BTFL, Jerry Amos, made the disclosure on Friday afternoon as he addressed the Staff Luncheon and Awards Ceremony for some clients, at Accra Beach Hotel and Spa.

Mr. Amos told the gathering: “Starting in the first quarter of the next financial year, we will launch STI-FEST – Service Technology Innovation Fest.
This initiative will blend technology and innovation to empower our clients in the services sector, equipping them with tools and insight to thrive in a rapidly evolving market.”

In highlighting some of the Fund’s accomplishments over its six years of existence, he pointed out that an online Loans Management System (LMS) was launched in 2024. He said the system has transformed the operations of the BTFL, as the loans process has been streamlined and is entirely online.

“Once the payment sections are completed, we will have a complete end-to-end system, making it easier for our clients to access and manage their financial services with us….

“We are not stopping there. In the second phase of development of the LMS solution, we will introduce artificial intelligence and data analytics to enhance the system’s capabilities.

“These advancements will allow us to better anticipate and respond to clients’ needs, as well as provide valuable insight that will help us refine and improve our services. This is about more than technology; it’s about using innovation to deliver even greater value to our clients,” he stressed.

Mr. Amos said recent public discussions about the Fund’s $5,000 loan offering had sparked reflection within the organisation. He insisted that such an amount could deliver the remarkable outcomes showcased by BTFL.

“When paired with guidance and resources, $5,000 can be the seed that transforms a dream into reality. That being said, we also recognise that some businesses require more than the $10,000 that we offer as a second loan, after the first $5000.00 loan is successfully repaid.

“We will continue to champion grant funding for potential entrepreneurs at the pre-seed stage, ensuring that ideas can grow into enterprises. Our work must not only fund businesses but nurture them to succeed,” he emphasised.

The General Manager praised the staff for their commitment, describing them as enablers of dreams, architects of change, and the backbone of the organisation’s success. He also congratulated the 27 clients who received awards for their hard work and dedication.

Permanent Secretary in the Ministry of Energy and Business, Kevin Hunte, underscored the importance of the entrepreneurs and Trust Fund celebrating their achievements. He encouraged them to map out and list their achievements.

“We need to wave them high, especially in these days where negative news seems to be taking the predominance. And, so I want to encourage you both – Trust Fund as well as the awardees – to tell your story … as widely as you can, as loudly as you can, and with as much detail as you can, because your success is Barbados’ success,” Mr. Hunte said. (PR/GIS)

Caption: Collis Lowe of Gratitude Enterprises accepting her award from Permanent Secretary in the Ministry of Energy and Business, Kevin Hunte

Business

Balancing Cruise & Cargo Operations At Bridgetown Port

As a multipurpose port, the Port of Bridgetown is focused on balancing the needs of both cargo and cruise customers, while minimising berthing conflict and ensuring delivery on customer expectations.

The Port of Bridgetown yesterday, December 10, 2024, welcomed four cruise ships. Seabourn Ovation sailed in with 532 passengers and Explora I with 900 passengers. The Resilient Lady made her inaugural visit with 2,245 passengers, as well as MSC Virtuosa with 5,083 passengers. MSC Virtuosa, homeporting at Bridgetown during winter 2024/25, also took on twenty-three 40ft containers of stores.

With all berths dedicated to cruise ships, yesterday was designated a “no cargo” day i.e. a day where cargo vessels cannot discharge or load cargo during the day i.e 0700 hrs to 1900 hrs,as all berths are occupied by cruise.

There are forty-two “no cargo” days anticipated during the peak season October 2024 and April 2025, of which vessel agents are advised and should reference as a vessel operations planning tool.

As a multipurpose port, inevitably some conflicts will occur. These however are resolved in the context of an age-old stated national policy where cruise vessels are accorded priority over cargo ships and cargo lines are aware that they have to plan around this mandate.

In addition to the policy, the Operations Team at the Port hosts daily briefing meetings focused on vessel planning at which agents and vessel representatives are present. These meetings are key to ensuring smooth operations, as the Port continues to serve both cargo and cruise lines, through the winter cruise season.

The assertion however, that the JPO Aquila container ship bypassed Bridgetown yesterday because it was deemed a “no cargo” day is inaccurate.

According to its schedule, the JPO Aquila was late in arriving at Port of Spain, Trinidad and as a result had to wait one day before berthing. The vessel was in fact still berthed and being worked in Trinidad yesterday, departing in the early hours of this morning. The vessel took the decision not to call at Bridgetown in an effort to get back on schedule. Even if it was not a “no cargo” day therefore, the vessel would not have made its scheduled call at Bridgetown.

JPO Aquila was originally scheduled to arrive at Bridgetown on December 6 and because of delays experienced in previous ports, rescheduled to December 8 and later December 10, for berthing in the evening. Just a single vessel was scheduled for work from 1600 hrs yesterday and no vessels were scheduled for 2300 hrs. The vessel could also have been serviced today if it had continued to Barbados.

The Port of Bridgetown understands the need to balance services to both cruise and cargo customers both of which are very critical, for different reasons, to the economy of Barbados. And to ensure service delivery, Barbados Port Inc, (BPI) remains flexible, extending weekday opening hours and opening on weekends as required, to facilitate commercial and personal cargo collection and delivery. Yesterday 168 full containers were handled at the Port.

BPI cautions however that during the peak cruise and cargo season, some delays are to be expected. The close arrival of three cargo vessels discharging 100+ containers each in the last two days, meant containers had to be stacked high, resulting in significant shifting to retrieve those ready for delivery.

Where normally four delivery lanes are dedicated for trucks, BPI was forced to work across three lanes only, due to the congestion in Port. Peak days are characterized by personnel and heavy-duty equipment in operation, as well as ground transport— taxis and tour buses, and visitors both local and foreign, all in a single space.

Here at the Port, work is advancing on the construction of Berth 6 at a cost of $108 million and is scheduled for completion in June 2025. This will allow for simultaneous berthing of cruise and cargo vessels. The ultimate goal is to achieve a separation of cruise and cargo operations, with the construction of new cruise facilities.

The investment required for such is significant and the Port continues discussions with potential partners, investors and financiers on dedicated cruise facilities. (PR/GIS)