The Inter-American Development Bank’s investment and private sector arm, IDB Invest, has led the structuring of a long-term financing arrangement for the Rio Cobre Water Treatment Plant in Jamaica.

With up to US$79 million (equivalent to JM$12 billion in local currency) in funding, the deal comprises a US$30-million loan from IDB Invest and US$49 million mobilised from partners, including Proparco, Sagicor Bank Jamaica Limited, and the Development Bank of Jamaica. The financing has an extended repayment period of up to 20 years, terms which were previously unavailable in the local market and specifically designed to ensure affordable water tariffs for Jamaicans.

According to IDB Invest, “The Rio Cobre Water Treatment Plant will improve access to reliable potable water for communities in the Kingston Metropolitan Area and parts of St Catherine. The project will address growing demand, enhance water reliability, and strengthen the country’s resilience to climate change, significantly benefiting over 600,000 Jamaicans through the daily supply of 15 million imperial gallons of water.”

Jamaica’s minister without portfolio in the Ministry of Economic Growth and Job Creation Matthew Samuda was present alongside key representatives from the National Water Commission for the signing ceremony in Kingston.

This project is a public-private partnership agreement between the National Water Commission and Rio Cobre Water Limited, a special purpose vehicle comprised of VINCI Construction Grands Projects, a global leader in large-scale infrastructure engineering and construction; and Capital Infrastructure Group, a regional infrastructure investment vehicle co-managed by Pan Jamaica Group Limited and Eppley Limited.

For its part, IDB Invest will also assist in enhancing the environmental and social management standards of the Rio Cobre Water Treatment Plant, as well as its corporate governance.

“By supporting Rio Cobre, IDB Invest reaffirms its commitment to promoting sustainable infrastructure development across the strategic region of the Caribbean. The project is expected to contribute to several of the United Nations’ Sustainable Development Goals (SDGs), specifically: (SDG 6) Clean Water and Sanitation for All; (SDG 8) Decent Work and Economic Growth (SDG 9) Industry, Innovation, and Infrastructure,” the multilateral development institution explained.