CARICOM Deputy Secretary-General, Dr Armstrong Alexis recently participated in a panel discussion with industry leaders and executives at the 8th Caribbean Infrastructure Forum (CARIF). CARIF is a two-day event that brings together regional and global leaders involved in the planning, financing and construction of infrastructure and capital projects across the Caribbean.
He gives background information on CARICOM; infrastructure in relation to the Community; infrastructure gaps in CARICOM; single ICT space and opportunities for private and multilateral communities’ support.
The following is extracted from his remarks…
Infrastructure Gaps in CARICOM
Using the SDGs as a guide, the range of resilient infrastructure required for inclusive growth and sustainable development in CARICOM Member States broadly covers transportation (road, aviation, and maritime); electricity (renewable energy sources); telecommunications including digital platforms; and water and sanitation (pure water supply, irrigation networks, waste management and recycling). Additionally, there is need to build out the health and education infrastructure in the pursuit of disaster preparedness and resilience.
In CARICOM, there are significant gaps in all components of the physical infrastructure stock. A 2019 IDB study in 6 CARICOM States which examined issues of efficiency, reliability, cost, and vulnerability to disasters and climate change noted the ageing infrastructure stock in several instances and identified major gaps. It was concluded that additional resources must “be channeled to productivity-boosting infrastructure projects to further stimulate near term growth, and long-term development.”[1]
A conservative estimate is that CARICOM States lose on average 2% of the capital stock in infrastructure because of climate related events each year. This is equivalent to having the infrastructure stock destroyed and rebuilt every 50 years.
It has been determined that during the decade prior to COVID, CARICOM States spent about 2% of GDP on infrastructure investment which is about half that spent by emerging Asian countries. CARICOM Governments are often having to replace disaster-damaged infrastructure even before they have completed repayment of the loans used to build the road or bridge, etc. Given the existing high levels of public debt, additional borrowing to invest in infrastructure upgrading and expansion is not often a viable option…
How can the private and multilateral communities support efforts?
Multilateral development banks such as the CDB, World Bank and IDB have been supportive to CARICOM Governments by providing workable templates and toolkits to support the forging of effective public private partnerships. Going forward, it is essential that both multilateral and regional development banks, development partners, and the private sector collaborate effectively to form much needed strategic partnerships that could be directed at unlocking the financing needed for critical infrastructure investments.
The strategic partnerships between Governments, development partners and multilateral development banks must focus on leveraging technical (knowledge, technology and productivity enhancements) and financial resources to de-risk infrastructure projects in a manner which ensures an acceptable risk-reward balance that could promote the crowding-in of private sector investments.
What are the key investments needed to deliver long-term economic growth and resilience and potential pipeline of projects
The infrastructure investments required to deliver long-term inclusive economic growth and build resilience span a range of sectors with diverse priorities according to the specific needs of each Member State. In general, investments which result in better roads, airports and ports facilitate the movement of people, goods and services while improved water, sanitation and sustainable energy infrastructure lower the costs of production and enhance productivity and competitiveness. Value-added investments will include the upgrading of telecommunication (ICT) and digital infrastructure as well as health and education services.
Source: CARICOM Press Release
Read the full text of Remarks here.