Financing Water Adaptation in Jamaica´s New Urban Housing Sector

Representatives from the IDB, JN Group and the Government at the signing ceremony

Overview

In March, 2017, the Inter-American Development Bank (IDB) and the Jamaica National (JN) Group signed two Cooperative Agreements, which provide the JN Bank and the JN Foundation with funding to execute a four-year project entitled “Financing Water Adaption in Jamaica’s Housing Sector”, also referred to as The Water Project Jamaica.

The project was designed to address water management issues related to climate change, which is the most serious threat to sustainable development facing Small Island Developing States (SIDS).  In the case of Jamaica, drought and shifting patterns of rainfall will exacerbate serious challenges already impacting the country’s water supply and distribution system such as capital and operational budgetary constraints, aging assets, population growth, urbanization and environmental degradation.  There is also the problem of inconsistent water supply negatively impacting local communities as well as the business models of housing developers and construction companies.  In addition, limited financing and an uncertain business case for water adaptation are barriers to the uptake of water efficient measures by the housing development sector.