Government To Receive £16.4 Million Grant From UK CIF For Southern St. George’s Water Supply Expansion Project

PR – The Government of Grenada is pleased to confirm that the United Kingdom  through its Foreign, Commonwealth and Development Office (FCDO) and the Caribbean  Development Bank (CDB), by Letter dated May 16, 2023, has reconfirmed grant financing of  £16,356,501, under the United Kingdom Caribbean Infrastructure Partnership Fund (UK CIF)  Facility, for the implementation of the capital phase of the Southern St. George’s Water  Supply Expansion Project. 

Due to several factors, including significant project delays, the FCDO also expressed regret  that it has been unable to secure UK CIF funding for the capital phase of the Western Road  Corridor Upgrade project.  

The Government of Grenada extends profound gratitude to the UK Government and the CDB for their gracious support, patience, and commitment. Importantly, the Government also takes this opportunity to refute claims that the new Administration is responsible for the loss  of UK CIF Funds. 

The UK Government in an earlier Letter dated November 16, 2022, advised that it was  unable to confirm the UK CIF funding for the capital phase of the Southern St. George’s  Water Supply Expansion Project and the Western Road Corridor Upgrade project due to a number of reasons, which include the current uncertainty in the UK, pressure on the UK aid  budget and the delayed state of the projects. 

The public may recall that in February 2016, the CDB signed a Memorandum of  Understanding (MOU) with the Government of the United Kingdom, acting through the then  Department for International Development (DFID), now FCDO, for the provision of up to £300 million by way of grant funding (UK CIF Resources) to finance economic infrastructure in  FCDO’s Official Development Assistance (ODA)-eligible countries in the Caribbean (the  Programme). 

Grenada received a total allocation of £22.99 million to be utilised for two initiatives identified by the Government of Grenada (GOGR), namely the Southern St. George’s Water Supply  and Sewerage Expansion Project; and the Western Main Road Corridor Upgrade Project,  with current allocations of £16.79 million and £6.2 million, respectively. Both projects were to  be conducted in two phases – a technical assistance (TA) phase to inform the feasibility and  designs, followed by a capital phase where the works would be undertaken. The Programme  end date for disbursements was March 31, 2024.

At the time of the November 2022 Letter, six (6) years after the approval of the funding, the  two projects were yet to get off the ground. Therefore, the delay in implementing the two projects by the previous Administration was a key factor in the near loss of roughly EC $74  million in grant funding. 

In closing, the Government wishes to reiterate its sincere appreciation to the Government  and People of the United Kingdom and the Caribbean Development Bank (CDB) for the  dedicated support extended to Grenada and looks forward to the timely completion of the  Southern St. George’s Water Supply Expansion Project.