Grenada Govt to receive £16.4M grant from UK for expansion of Southern St George’s water supply

St George’s, Grenada: The Government of Grenada confirmed that the United Kingdom, through its Foreign Commonwealth and Development Office (FCDO) and the Caribbean Development Bank (CDB), by letter dated May 16, 2023, has reconfirmed grant financing of £16,356,501, under the United Kingdom Caribbean Infrastructure Partnership Fund (UK CIF) Facility, for the implementation of the capital phase of the Southern St George’s Water Supply Expansion Project.

Due to several factors, including significant project delays, the FCDO also expressed regret that it has been unable to secure UK CIF funding for the capital phase of the Western Road Corridor Upgrade project, according to the government.

The Government of Grenada extends profound gratitude to the UK Government and the CDB for their gracious support, patience, and commitment. Importantly, the Government also takes this opportunity to refute claims that the new Administration is responsible for the loss of UK CIF Funds.

The UK Government, in an earlier Letter dated November 16, 2022, advised that it was unable to confirm the UK CIF funding for the capital phase of the Southern St George’s Water Supply Expansion Project and the Western Road Corridor Upgrade project due to a number of reasons, which include the current uncertainty in the UK, pressure on the UK aid budget and the delayed state of the projects.

The government of Grenada further outlined that the public may recall that in February 2016, the CDB signed a Memorandum of Understanding (MOU) with the Government of the United Kingdom, acting through the then Department for International Development (DFID), now FCDO, for the provision of up to £300 million by way of grant funding (UK CIF Resources) to finance economic infrastructure in FCDO’s Official Development Assistance (ODA)-eligible countries in the Caribbean (the Programme).

Grenada received a total allocation of £22.99 million to be utilised for two initiatives identified by the Government of Grenada (GOGR), namely the Southern St. George’s Water Supply and Sewerage Expansion Project; and the Western Main Road Corridor Upgrade Project, with current allocations of £16.79 million and £6.2 million, respectively.

Both projects were to be conducted in two phases – a technical assistance (TA) phase to inform the feasibility and designs, followed by a capital phase where the works would be undertaken.

The Programme end date for disbursements was March 31, 2024.

At the time of the November 2022 Letter, six (6) years after the approval of the funding, the two projects were yet to get off the ground.

Therefore, the delay in implementing the two projects by the previous Administration was a key factor in the near loss of roughly EC $74 million in grant funding.

In closing, the Government wishes to reiterate its sincere appreciation to the Government and People of the UK and the Caribbean Development Bank (CDB) for the dedicated support extended to Grenada and looks forward to the timely completion of the Southern St George’s Water Supply Expansion Project.