The Caribbean Development Bank' (CDB) Board of Directors has approved a USD11.2 million loan to the Government of Saint Lucia. The funding will help improve the water supply system in the community of Dennery North. The Dennery North Water Supply Redevelopment Project aims to deliver a safe, reliable and climate-resilient supply of potable water to residents and businesses in the area. “CDB is committed to strengthening and modernising social and economic infrastructure in Saint Lucia," said Daniel Best, Director of Projects, CDB. “We are pleased that, with the completion of this Project, nearly 8,000 people in Dennery North will have access to the quality water supply they need to lead productive lives." The community of Dennery North is grappling with some of the most acute water supply challenges in Saint Lucia. In the dry season, the quantity of water available from existing intakes decreases significantly. In the rainy season, raw water is especially turbid, and treatment facilities are unable to improve the quality to an acceptable level. In addition, the community' water supply infrastructure is outdated and can no longer keep pace with rising demand. The water shortages have disrupted household and business activities in Dennery North, led to migration out of the community, and reduced productivity and profitability. This has presented significant implications for business growth, investment, job creation and livelihood protection. The Dennery North Water Supply Redevelopment Project addresses these challenges. It includes the Construction of a river intake; transmission main; treatment plant; pumping stations; storage reservoirs; and distribution pipelines. The design of the new infrastructure also takes into consideration the impact of climate variability and change. In addition to the loan, the Government of Saint Lucia will receive a grant of USD110,000, to be used for communications and building awareness of the Project; water conservation practices; water-borne diseases; and the impact of climate change on water supply. The Project is consistent with CDB' Saint Lucia Country Strategy Paper (2013-2016), which prioritises improving the efficiency of social and economic infrastructure on the island. Its approval follows the launch of the CDB-funded John Compton Dam Rehabilitation and Vieux Fort Water Supply Redevelopment projects in November 2015.