Caribbean Infrastructure: Multilaterals to the Rescue
As financing from commercial banks becomes increasingly expensive and hard to access, developers of Caribbean infrastructure turn to multilaterals.
by Taina Rosa
As the financial crunch continues, the Caribbean has come to
rely mostly on multilaterals such as the IDB and the World Bank
for infrastructure financing. This is especially true for
nations rated sub-investment grade, but the region generally is
struggling to fund its key tourism sector through international
Unless youre dealing in investment grade countries,
your sources of financing are multilaterals such as the
International Finance Corporation and the IDB, says Scott
Swensen, chairman of energy-focused private equity shop Conduit
Capital. Multilaterals take more time, but terms are more
favorable. They offer longer terms and cheaper rates, he
The World Bank in April approved a $27.5 million loan for the
Dominican Republic to improve the potable water and sanitation
supply in the tourist area of Puerto Plata. For the Bahamas,
the IDB approved two technical cooperation grants totaling
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