May 26 (Renewables Now) - The European Investment Bank (EIB) and Caribbean Development Bank (CDB) have inked a USD-110-million (EUR 100m) financing agreement to back climate action projects in the Caribbean, the institutions announced on Wednesday.
According to the announcement, this is EIB's biggest loan to the Caribbean. The Climate Action Framework Loan II will support climate change mitigation, adaptation and resilience projects in renewable energy, energy efficiency, road transport, water infrastructure and community-level physical and social infrastructure. A pipeline of over USD 300 million of projects has already been developed with the help of an EIB-funded technical assistance programme.
The loan agreement was signed by CDB president Warren Smith and EIB vice president responsible for the Caribbean Pim van Ballekom in the Turks and Caicos Islands on May 24, during the annual meeting of CDB's board of governors.
The new loan builds on the USD- 65-million Climate Action Line of Credit (CALC) agreed by EIB and CDB in 2011. CDB has committed these funds to nine projects in seven countries.
"Through this new Line of Credit, CDB will be able to provide to its BMCs [borrowing member countries] much needed low-cost financing to address the climate impacts already affecting these countries," said the CDB president.
(USD 1 = EUR 0.909)