The Caribbean Development Bank (CDB) has announced its strongest financing year on record, approving US$464 million in new support across the Caribbean in 2025 — a 50% increase over the previous year. Disbursements climbed to US$429 million, up 30% from 2024. Most striking of all, climate finance more than doubled to US$226.7 million, accounting for roughly half of all project approvals. For contractors, consultants, and suppliers working in the Caribbean, these numbers signal a procurement pipeline that is expanding rapidly across energy, water, transport, and education.
Record-Breaking Results in 2025
The results, presented at CDB's Annual News Conference on March 3, 2026, by Director of Projects L. O'Reilly Lewis, paint a picture of a regional development bank punching well above its weight. The AA+ rated institution — affirmed by Fitch — has moved aggressively to fill financing gaps across its 19 borrowing member countries at a time when global aid budgets are contracting.
The US$464 million in approvals spans transport infrastructure, water and sanitation, education, and sustainable energy — CDB's four core sectors. The 50% year-on-year increase reflects both an expansion of the Bank's lending capacity and growing demand from member governments facing compounding climate and economic vulnerabilities.
Lewis framed the figures in practical terms: "From energy security to climate-ready infrastructure, from water systems to world-class airports, these investments represent commitments to stronger economies and empowered people."
Beyond sovereign lending, CDB's Basic Needs Trust Fund approved US$53.6 million for its Eleventh Cycle, covering 92 community-level subprojects across nine Caribbean nations. These smaller-scale projects — typically in rural water supply, roads, and community facilities — represent a distinct but important procurement channel, particularly for local and regional contractors.
Climate Finance Doubles to $226.7 Million
The headline within the headline is CDB's climate finance performance. The Bank approved US$226.7 million for climate action in 2025, more than doubling the US$101.5 million committed in 2024. This record total represented approximately 50% of all project approvals — a ratio that few multilateral development banks achieve.
Three large environmental Policy-Based Loans (PBLs) drove the surge:
- Guyana: US$125 million for biodiversity conservation, climate action reforms, and water resource management
- Dominica: US$30 million for climate resilience policy reforms
- Saint Vincent and the Grenadines: US$30 million for environmental governance strengthening
These PBLs do not procure goods or works directly, but they unlock downstream investment. Guyana's US$125 million loan, for example, supports reforms that will create new procurement requirements in biodiversity monitoring, environmental compliance systems, and water infrastructure. As these policy frameworks take effect, implementing agencies will begin tendering for the technical assistance, equipment, and construction needed to meet reform targets.
CDB Division Chief Valerie Isaac was direct about the stakes: "The climate crisis is not simply a challenge. It is an existential threat to our development. Resilience is a fundamental requirement for regional growth and stability."
Green Climate Fund Partnerships
CDB also secured two significant packages from the Green Climate Fund (GCF):
- Integrated Utility Services Programme: US$27 million in GCF grant and loan financing (US$68 million total investment) to scale up energy efficiency and distributed renewable energy — including rooftop solar installations — across Barbados, Belize, and Jamaica
- Caribbean Hydrometeorological and Multi-Hazard Early Warning Services Project: US$27 million in GCF grants to upgrade weather forecasting and early warning systems in Belize and Trinidad and Tobago, protecting 1.8 million people
Both programs will generate procurement across consulting (system design, meteorological technical assistance), supplies (solar panels, battery systems, weather stations, radar equipment), and works (installation, grid upgrades).
Major Infrastructure Projects by Country
Beyond climate finance, CDB approved a series of specific infrastructure investments that will drive procurement across the region through 2027 and beyond.
Aviation and Transport
- Barbados: US$47 million for Grantley Adams International Airport expansion, targeting a doubling of passenger throughput. This is a major infrastructure procurement event — terminal construction, boarding systems, baggage handling, security equipment, and runway improvements will all require competitive tendering.
- Saint Vincent and the Grenadines: US$46 million for Canouan Airport climate resilience upgrades. Climate-proofing a Caribbean airport means engineering against hurricanes and sea-level rise — specialized works that demand international expertise in coastal infrastructure and resilient construction.
Energy and Grid Modernization
- Belize: US$27 million for the Eighth Power Project, modernizing the electricity grid serving approximately 114,000 households and businesses. Procurement will cover grid equipment, transformers, smart metering systems, and installation works.
- Grenada: US$8.7 million for a battery energy storage system providing coverage to over 90% of the population. Battery energy storage is one of the fastest-growing procurement categories in Caribbean energy, as island states move to stabilize grids fed by intermittent renewables.
Water and Sanitation
- The Bahamas: US$30 million for water supply improvements in the Family Islands, benefiting roughly 5,000 residents. Water infrastructure on dispersed island chains requires specialized marine logistics and desalination expertise.
Education and Human Capital
- The Bahamas: US$6 million to create a Polytechnic and Accreditation Training Hub for more than 800 youth and graduates
- Haiti: Education projects reaching 17,000 students, agricultural training for 250 farmers (48% women), and solar energy expansion for 2,000 rural customers
Haiti's combined education-agriculture-energy program is notable for its integrated approach and for the fact that CDB remains one of the few multilateral institutions still actively financing new projects in the country.
Procurement Implications
The US$464 million in CDB approvals translates into a diversified procurement pipeline across multiple contract types and sectors. Here is how the opportunities break down.
Works and Construction
Airport expansions in Barbados and Saint Vincent represent the largest single-contract procurement events. The Grantley Adams expansion alone will likely require prime contractors with experience in airport terminal construction, along with subcontractors for MEP (mechanical, electrical, plumbing), security systems, and runway rehabilitation. Climate resilience works at Canouan Airport add a specialized dimension — contractors will need to demonstrate expertise in hurricane-resistant construction standards.
Water infrastructure in The Bahamas will generate tenders for pipeline construction, desalination plant installation, and storage facility works across multiple islands.
Supplies and Equipment
Grid modernization in Belize and battery storage in Grenada will require procurement of transformers, switchgear, smart meters, lithium-ion or similar battery systems, and inverters. The rooftop solar program across Barbados, Belize, and Jamaica through the GCF-funded Utility Services Programme will procure thousands of solar panel units and associated mounting and electrical equipment.
Early warning systems for Belize and Trinidad and Tobago will need weather radar, automated weather stations, satellite communication equipment, and data processing hardware.
Consulting Services
Policy-Based Loans to Guyana, Dominica, and Saint Vincent will generate consulting contracts for environmental governance reform, water resource management planning, and biodiversity monitoring system design. CDB's community-level Basic Needs Trust Fund projects typically require design consultants, environmental assessors, and project supervision engineers.
Key Procurement Features
CDB follows International Competitive Bidding (ICB) for larger contracts and National Competitive Bidding or shopping procedures for smaller ones. Procurement thresholds vary by country and project, but ICB is generally required for works above US$3 million and goods above US$500,000.
Firms registered with other multilateral development banks (World Bank, IDB, AfDB) will find CDB's procurement framework broadly familiar, though Caribbean-specific requirements — including hurricane-resistant construction standards and island logistics — add a layer of specialization.
What This Means for Contractors
Companies looking to bid on CDB-financed projects should focus on three areas:
- Energy and climate resilience: This is where half of CDB's money is going. Firms with experience in grid modernization, battery storage, rooftop solar, and climate-resilient infrastructure are best positioned. The GCF-funded programs in particular will issue multiple procurement packages across three to four countries simultaneously.
- Airport infrastructure: Two major airport projects — one expansion, one climate upgrade — represent the largest individual contract opportunities. International joint ventures with local firms will likely be preferred.
- Water and sanitation: Caribbean water systems face unique challenges — saltwater intrusion, hurricane damage, dispersed island populations. Contractors with desalination and island water system experience should monitor water and sanitation tenders closely.
Registration with CDB's procurement system and familiarity with its Standard Bidding Documents are essential first steps. CDB publishes procurement notices through its website and through regional newspapers in borrowing member countries.
Looking Ahead
CDB has signaled that 2026 will bring even more ambitious financing. The Bank's near-term priorities include a US$200 million regional blue economy programme to protect ocean resources while creating marine sector jobs — a first-of-its-kind initiative for the Caribbean that will open an entirely new procurement category covering marine conservation, sustainable fisheries technology, and coastal infrastructure.
Additionally, CDB is developing a flagship investment portfolio platform for its energy and transport sectors, designed to bundle projects into larger, more bankable packages that can attract private co-financing. Water sector resilience and locally-led climate adaptation are also strategic priorities for the year ahead.
For procurement professionals monitoring the Caribbean, the trajectory is clear: CDB is scaling rapidly, climate finance is its primary instrument, and the pipeline of tenders across energy, infrastructure, water, and education is broader than it has ever been.
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