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(File photo)

US$20 million credit approved for Grenada’s blue economy transition – World Bank

(File photo)

The World Bank announced that it approved a US$20 million credit to support Grenada’s transition to a resilient blue economy today.

The World Bank headquarters in Washington DC, United States.

Grenada’s Second Fiscal Resilience and Blue Growth Development Policy Credit is expected to promote reforms to support fiscal sustainability, strengthen marine and coastal management, and build climate resilience.

According to the World Bank, The Blue Economy refers to the use of ocean resources for economic growth including renewable energy, fisheries, waste management tourism and maritime transport.

“Protecting and preserving the rich marine and ocean resources is essential for the country’s successful transition to a blue economy and for boosting coastal tourism, which contributes 24 per cent to the country’s GDP.”

– World Bank Director for the Caribbean, Tahseen Sayed

The operation “deepens support for Grenada’s policy and institutional measures to maintain fiscal discipline and diversify the economy towards a blue growth model that is based on sustainable and well-governed use of ocean resources. It includes fiscal reform measures such as building fiscal buffers, improving public expenditure management, instituting customs and excise reforms, and improving transparency of public enterprises,” the Washington-based institution said.

The International Development Association, a financing arm of the World Bank, will provide the US$20 million credit which has a maturity of 40 years and a grace period of a decade.

Grenada is transitioning to a resilient blue economy.

World Bank Director for the Caribbean, Tahseen Sayed said, “Fiscal sustainability and strengthening environmental management are critical for building cross-cutting resilience in Grenada.”

Sayed added that “Protecting and preserving the rich marine and ocean resources is essential for the country’s successful transition to a blue economy and for boosting coastal tourism, which contributes 24 per cent to the country’s GDP. The World Bank is committed to expanding its support for the Caribbean’s transition to a sustainable blue economy.” 

Plastic pollution is one of the main environmental challenges in the Caribbean.

The move will assist Grenada’s efforts for better management of its environment and natural resources, which have included a ban on Styrofoam food containers and the phasing out of single-use plastic bags and utensils, which contributes to plastic pollution, one of the region’s main environmental challenge.