IDB Approves US$80m to Boost Flood-Resilient Transport Infrastructure in The Bahamas

The loan will finance a Global Multiple Works (GOM) program designed to modernize drainage systems, reinforce key road corridors, and improve long-term maintenance practices.

The Inter-American Development Bank (IDB) has approved an US$80 million loan to help The Bahamas strengthen the resilience and sustainability of its transport infrastructure and reduce the socioeconomic disruptions caused by recurrent flooding in New Providence, the country’s most populous island and economic hub.

The loan will finance a Global Multiple Works (GOM) program designed to modernize drainage systems, reinforce key road corridors, and improve long-term maintenance practices. These upgrades aim to mitigate flood-related damages, enhance mobility during severe weather, and reduce economic losses associated with infrastructure failures.

A Strategic Investment Aligned with Regional Resilience Goals

The program supports broader regional strategies, including:

• ONE Caribbean, the IDB Group’s holistic framework for advancing sustainable development in Caribbean nations and Small Island Developing States.

• Ready and Resilient Americas, a regional impact initiative that strengthens disaster preparedness, climate resilience, and risk reduction across Latin America and the Caribbean.

These alignments ensure that The Bahamas benefits not only from financing but also from knowledge-sharing and technical insights from other countries confronting similar climate vulnerabilities.

Improving Mobility for Residents and Millions of Tourists

More than 296,000 people living on New Providence will directly benefit from safer, more reliable transport networks—particularly during hurricanes, tropical storms, and periods of heavy rainfall. The improvements will also support the island’s tourism sector, which hosts millions of visitors each year and depends on well-functioning roads for hotel access, airport connectivity, and cruise operations.

Indirectly, all 398,000 residents of The Bahamas will benefit from a more stable economy, reduced losses in productivity, and improved efficiency in public spending on road repair and maintenance.

Flooding: A Growing Threat to Infrastructure and the Economy

New Providence frequently experiences major flooding, as existing drainage systems struggle with rising sea levels, rapid urbanization, and more intense rainfall linked to climate change. When stormwater overwhelms drainage capacity:

• Roads become impassable

• Emergency response and essential services are disrupted

• Businesses experience losses due to stalled commerce

• Road deterioration accelerates, increasing future maintenance costs

These recurring disruptions weaken the island’s economy, which relies heavily on tourism, services, and daily movement of people and goods.

Sustainable, Climate-Resilient Upgrades to Transport Corridors

The IDB-funded program will focus on designing and implementing resilient, sustainable flood-mitigation and stormwater-management infrastructure across priority transport routes, including:

• Primary urban roads

• Major thoroughfares

• Community and residential streets

This includes installing advanced drainage systems, improving road elevation where needed, reinforcing vulnerable segments, and enhancing stormwater retention and flow capacity.

Strengthening Governance and Long-Term Infrastructure Planning

Beyond physical upgrades, the project will support the Ministry of Works and Family Island Affairs in:

• Implementing a modern asset-management system for roads

• Updating standards and specifications for road construction and drainage

• Improving maintenance planning to extend infrastructure lifespan

• Promoting universal accessibility, ensuring safer, more inclusive streets for pedestrians, seniors, and people with disabilities

These systemic improvements aim to reduce long-term costs and ensure that investments remain effective against worsening climate impacts.

Financing Terms

The US$80 million loan features:

• 25-year repayment period

• 5.5-year grace period

• Interest rate tied to SOFR (Secured Overnight Financing Rate)

Such terms provide fiscal flexibility for The Bahamas as it invests in climate-resilient infrastructure while managing broader economic priorities.

Building a More Resilient Bahamas

With climate change increasingly threatening Caribbean nations, the IDB’s support represents a major step toward strengthening New Providence’s resilience, safeguarding mobility, and protecting the island’s role as the economic and tourism center of The Bahamas.