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The office of the Caribbean Development Bank in St Michaels, Barbados. (Photo: caribank.org)

CDB, IDB Group sign new cooperation agreement

The office of the Caribbean Development Bank in St Michaels, Barbados. (Photo: caribank.org)

The presidents of the Caribbean Development Bank (CDB) and the Inter-American Development Bank (IDB), and the chief executive officer of IDB Invest, on Monday signed a mutual cooperation agreement that aims to support economic development and integration of the Caribbean Community and common market.

The signing ceremony took place on Monday, with CDB and IDB headquarters in Barbados and Washington, DC, respectively, connected by videoconference.

Caribbean Development Bank (CDB) President Dr William Warren Smith (left), Inter-American Development Bank (IDB) President Luis Moreno (top right), IDB Invest CEO James Scriven during the virtual signing ceremony of a new cooperation agreement between the CDB, IDB and IDB Lab on Monday, July 13, 2020. (Photo: CDB)

“Today’s (July 13) signing ceremony is a reaffirmation of CDB and IDB’s shared commitment to the sustainable growth and development of the Caribbean Region. It signals that we have another milestone in over four decades of collaboration between our two institutions,” CDB President Dr William Warren Smith remarked.

“With the widening of our agreement to include IDB Invest, we are also expanding the opportunities for the regional private sector to play an even bigger and more meaningful role in improving the lives and well-being of Caribbean people,” he continued.

A new agreement

“This agreement will help the Caribbean region at a critical time when countries face enormous challenges to transform their post-pandemic economies in order to become more sustainable and more resilient to natural disasters, and more capable of harnessing the creative energies of their people.” 

— IDB President Luis Alberto Moreno

Based on the new agreement, the CDB, IDB, and IDB Invest will cooperate in the financing or co-financing of projects that focus on building social, economic, and environmental resilience in the Caribbean. The institutions’ partnership will also address increasing social inclusion and equality, as well as the enhancement of good governance and innovation.

The agreement also includes joint financial and advisory services and building capacity and training.

The facade of the Inter-American Development Bank in Washington, DC, USA.
(File photo)

“This agreement will help the Caribbean region at a critical time when countries face enormous challenges to transform their post-pandemic economies in order to become more sustainable and more resilient to natural disasters, and more capable of harnessing the creative energies of their people,” IDB President Luis Alberto Moreno pointed out.

The boosted cooperation between CDB and the IDB Group replaces a cooperation agreement from 1977. So, with this new arrangement, the CDB and IDB Invest will explore jointly promoting public-private partnerships.

By harmonising policies and procedures for the procurement of goods, works, and services, the new agreement also increases efficiency gains to be passed on to project beneficiaries in the form of reduced transaction costs.