The Bahamas to Strengthen Disaster-Risk Management with IDB Support

WASHINGTON - The Inter-American Development Bank (IDB) has approved a US$160 million loan to support The Bahamas in enhancing its disaster-risk management.

The operation, which has been approved by the IDB's Board of Executive Directors, is the second loan in a series of two. The first, approved in 2023, focused on establishing the legal structure for disaster-risk management. It led to the passage of the Disaster Risk Management Act.

This second loan will allow The Bahamas to design and adopt the core policy instruments created by that law, such as national standards for humanitarian assistance, a comprehensive financial strategy for disaster management, and reference parameters for disaster management. The operation will also enable the Bahamian authorities to better identify and reduce risks and improve disaster preparedness and recovery planning.

Under the program, the authorities plan to create an information system based on past disasters and projected scenarios to improve risk informed decision making and preparedness. Additionally, the program will train public officials in risk assessment to ensure that disaster resilience is progressively integrated into new public infrastructure.

The Bahamas is among the countries in the region most exposed to natural disasters. In the last 25 years, it has experienced 15 major events, mostly hurricanes.

The program will benefit the approximately 390,000 residents across all the islands of The Bahamas, which are exposed to the effects of tropical storms and hurricanes.

The IDB loan has a 20-year repayment term, a 5.5-year grace period, and an interest rate based on the secured overnight financing rate (SOFR).