A $65.2 million GCF-backed investment will help The Bahamas strengthen water security, protect fragile freshwater systems and build climate resilience across vulnerable islands facing storms, drought and rising seas.
The Bahamas will receive a major boost to its water security after the Green Climate Fund approved a $65.2 million investment aimed at strengthening climate resilience across the country’s vulnerable water sector.
The initiative, titled Climate Resilience of the Water Sector in The Bahamas, is being delivered with support from the Caribbean Development Bank, which served as the project’s Accredited Entity and led its design. Implementation will be carried out in partnership with the Water and Sewerage Corporation and the Government of The Bahamas.
The financing package includes a $37.506 million grant from the Green Climate Fund, a $12.546 million concessional loan from the fund, a matching $12.546 million loan from the Caribbean Development Bank and an in-kind contribution of $2.602 million from the Water and Sewerage Corporation.
“This investment represents a transformational opportunity for The Bahamas,” said L. O’Reilly Lewis, Director of Projects at the Caribbean Development Bank. “By combining robust climate-resilient infrastructure with strengthened governance and data-driven management, we are helping to safeguard the country’s water security for generations to come. CDB is proud to partner with the GCF, WSC and the Government of The Bahamas on this vital initiative.”
Kristin Lang, Director of the Green Climate Fund’s Department of the Latin America and the Caribbean Region, described the project as the fund’s first single-country programme in The Bahamas.
“Through this investment we are strengthening country-owned solutions in Small Island Developing States where climate risks are highest,” she said. “The project will strengthen climate-resilient water systems, build long-term resilience and protect essential services in the face of intensifying storms and climate stress. The investment reflects GCF’s commitment to strengthen country ownership and be The Bahamas’ climate partner of choice.”
One of the world’s most climate-vulnerable Small Island Developing States, The Bahamas faces repeated threats to its fragile freshwater systems from hurricanes, storm surges of up to seven metres, prolonged drought and rising sea levels.
Around 83 percent of the country’s landmass lies less than five metres above sea level. The national utility relies heavily on costly desalination while its infrastructure is frequently damaged by extreme weather, driving up operational costs and disrupting water supply.
The country’s groundwater lenses, its only natural freshwater source, are also under increasing pressure due to reduced recharge, rising temperatures and saltwater intrusion.
The newly approved project aims to address these risks by improving water governance, strengthening national monitoring systems and upgrading infrastructure across six islands including New Providence, South Andros, Mangrove Cay, North and Central Andros, Abaco and Acklins.
Planned interventions include climate-resilient wellfields, storm- and flood-resistant pumping stations, expanded water storage, improved connectivity between systems and targeted efforts to reduce water losses.
These measures are expected to deliver more reliable and climate-resilient water services to more than 215,000 direct beneficiaries while enhancing overall national resilience for an additional 199,000 people.
The project aligns closely with the Caribbean Development Bank’s Strategic Plan 2026–2035, which prioritises climate action, resilient infrastructure and stronger institutions as key pillars for the region’s long-term transformation.
The bank said it looks forward to supporting implementation of the project as part of efforts to build a more climate-resilient future for The Bahamas.
