World Bank & Dominica

The World Bank has been instrumental in Dominica’s development for over five decades, supporting infrastructure, economic stability, disaster resilience, environmental sustainability, and healthcare. The Bank’s relationship with Dominica includes many projects and funding sources tailored to the island’s unique challenges, from rugged landscape to vulnerability to natural disasters. Here’s a comprehensive look at the depth and impact of World Bank support across sectors, highlighting both immediate and long-term initiatives that address Dominica’s development needs.

Overview of World Bank Support to Dominica

The World Bank began partnering with Dominica in the 1970s to bolster foundational infrastructure, enabling economic growth and improving connectivity on the island. Early loans supported water systems, energy improvements, and transport, essential for an island heavily reliant on connectivity for trade, tourism, and resilience. Through the 1980s and 1990s, structural adjustment loans introduced fiscal reforms and encouraged private-sector growth, though these came with stringent economic conditions. Since then, the Bank has continuously adapted its support to address evolving priorities, mainly focusing on climate resilience, disaster recovery, renewable energy, healthcare, and sustainable agriculture.

Disaster Resilience and Post-Hurricane Maria Support

The Bank’s response to natural disasters, particularly Hurricane Maria in 2017, underscores its vital role in Dominica’s disaster resilience strategy. Maria devastated around $1.3 billion of infrastructure and severely impacted housing, agriculture, and public services. To help Dominica recover, the World Bank quickly mobilized $65 million, integrating a “Build Back Better” approach. This funding was critical to Dominica’s ambitious goal of becoming the world’s first climate-resilient nation, supporting infrastructure designed to withstand future hurricanes and creating systems for rapid response and recovery.

Dominica’s Disaster Vulnerability Reduction Project (DVRP), initiated in 2014 and expanded post-Maria, exemplifies this resilience strategy. DVRP’s $70 million commitment encompasses flooding mitigation, disaster preparedness data systems, and retrofitting critical facilities such as schools and hospitals. The project is a cornerstone of Dominica’s resilience infrastructure, enabling proactive measures against climate impacts.

Climate Resilience and Environmental Sustainability

Climate resilience is central to Dominica’s development model, with World Bank projects promoting environmental conservation and sustainable energy. Dominica’s reliance on costly imported fossil fuels led to the Bank’s support of the Geothermal Risk Mitigation Project, which allocates $17.2 million from IDA funds and $9.9 million from the Clean Technology Fund. The project’s 7 MW geothermal plant will provide a sustainable energy source, decreasing fossil fuel dependency and establishing Dominica as a leader in renewable energy within the Caribbean.

The Bank also funds Blue Economy initiatives, which promote marine conservation and sustainable fishing to balance economic growth with environmental protection. Additionally, the National Forest Policy, supported by the World Bank and PROGREEN, lays out a sustainable framework for forest management. It aligns forest conservation with climate mitigation by safeguarding carbon sinks that regulate the water cycle and reduce erosion risks.

Health and Economic Recovery

Health system resilience is another critical focus. The World Bank provided $15 million to modernize Dominica’s healthcare infrastructure as part of the Eastern Caribbean Health Sector Strengthening Project. This initiative has strengthened emergency response capabilities and enhanced healthcare delivery, which are essential for managing the impacts of pandemics and natural disasters. The COVID-19 pandemic saw additional support, with a $30 million loan to stabilise Dominica’s economy, safeguard jobs, and maintain essential services during economic disruptions.

Infrastructure and Economic Diversification

Infrastructure has remained a priority, especially in tourism and transport. In 2020, the Caribbean Regional Air Transport Connectivity Project allocated $13 million to upgrade Dominica’s air transport infrastructure. This project improves regional connectivity and integrates climate resilience measures into Dominica’s airport, enhancing reliability in adverse weather conditions. The Bank’s investments in eco-tourism and agriculture further support Dominica’s economic diversification, with the Leveraging Eco-Tourism for Biodiversity Protection in Dominica project encouraging sustainable practices that enhance the island’s appeal to tourists.

Key Projects and Initiatives (in brief)

1. Disaster Vulnerability Reduction Project (DVRP): $70M for disaster preparedness and resilient infrastructure.
2. Geothermal Risk Mitigation Project: $17.2M IDA + $9.9M Clean Technology Fund for renewable energy.
3. Eastern Caribbean Health Sector Strengthening: $15M for healthcare modernization.
4. COVID-19 Economic Support: $30M to stabilize the economy and protect jobs.
5. Caribbean Regional Air Transport Connectivity: $13M for airport infrastructure and safety.
6. Agricultural Livelihoods Restoration: $16.4M to support farmers and food security.
7. Blue Economy and Marine Conservation: $38.5M for sustainable marine resources.
8. National Forest Policy and PROGREEN: Framework for sustainable forest management.

Long-Term Vision and Future Prospects

The World Bank’s evolving approach reflects Dominica’s trajectory toward a climate-resilient, economically diverse future. By supporting sustainable energy, environmental protection, and infrastructure resilience, the World Bank provides immediate relief and builds the foundation for enduring growth. This collaboration demonstrates how targeted investments, aligned with Dominica’s climate and development goals, can drive impactful change in vulnerable small island states.