Barbados Secures $54M World Bank Project for Hurricane Beryl Recovery and Climate Resilience

The project is expected to benefit approximately 24,640 people and marks the resumption of Barbados' borrowing relationship with the International Bank for Reconstruction and Development (IBRD).

The World Bank’s Board of Executive Directors has approved the Beryl Emergency Response and Recovery Project, a $54 million initiative to support Barbados in recovering from the devastating impacts of Hurricane Beryl and enhancing its resilience to future climate challenges. The project is expected to benefit approximately 24,640 people and marks the resumption of Barbados' borrowing relationship with the International Bank for Reconstruction and Development (IBRD).

On July 1, Hurricane Beryl passed within 150 kilometers of Barbados, leaving a trail of destruction. Key areas affected included:

Bridgetown Port and Fisheries Marina: Severe damage to the cruise terminal, breakwater, and other infrastructure.

Fisheries Sector: Over 240 fishing vessels were destroyed or damaged, disrupting the livelihoods of thousands and affecting the supply chain.

Housing and Tourism: 40 homes and 73% of tourist accommodations sustained damage.

The hurricane's economic toll underscored the pressing need for climate adaptation and disaster preparedness in Barbados.

The Beryl Emergency Response and Recovery Project aims to rebuild damaged infrastructure, strengthen climate resilience, and safeguard vulnerable communities. Key components include:

Rehabilitation of Fisheries Infrastructure:

Repair and replacement of damaged fishing vessels and equipment.

Restoration of the Barbados Fisheries Marina and coastal defences with climate-smart technologies to ensure sustainability.

Disaster Preparedness:

Strengthening Barbados’ national emergency management systems.

Development of a robust management information system and inclusive emergency shelter strategies.

Resilient Infrastructure:

Rebuilding critical facilities with climate adaptation in mind.

Innovative Financial Tools:

Climate Resilient Debt Clause: Allows Barbados to defer debt payments for up to two years during recovery efforts.

Rapid Response Option: Enables immediate reallocation of unutilized funds from other projects to address emergencies.

The Rapid Response Option marks a milestone as the first of its kind in Latin America and the Caribbean.

Statements of Commitment

Prime Minister Mia Mottley emphasized the importance of resilience, stating:“In the face of adversity, we must rebuild with resilience. Climate change is not a distant threat—it is a present reality affecting our people and livelihoods. This project is a commitment to safeguarding our future while protecting the most vulnerable among us.”

World Bank Caribbean Director Lilia Burunciuc highlighted the economic stakes:“Barbados experiences an average loss of $48 million annually from hurricanes, nearly 1% of GDP. Urgent support is vital, and this project underscores the World Bank's commitment to helping Barbados build a more resilient future.”

A Renewed Partnership with the World Bank

This project represents Barbados’ first operation with the IBRD since re-engaging as a borrowing member after a 30-year hiatus. Previously, the country received World Bank assistance only on an exceptional basis. The initiative sets the stage for a deeper partnership aimed at sustainable development and climate resilience.

Building a Resilient Future for Barbados

The Beryl Emergency Response and Recovery Project is not only about recovery but also about building a stronger, climate-resilient Barbados. As the Caribbean region faces increasing climate challenges, the innovative mechanisms and strategic investments in this project could serve as a model for other vulnerable nations navigating similar crises.