The signature achievement of the Special Development Fund (SDF/the Fund) in 2021 was the $383 million (mn) replenishment for the Tenth Cycle of SDF (SDF 10) to support regional resilience-building  –  a necessary condition for Borrowing Member Countries (BMCs) to achieve inclusive socio-economic development and reduce inequalities.  The substantial replenishment is also an important demonstration of the confidence shareholders have in the Bank’s ability to deliver on its poverty reduction mandate. 

The operational performance in 2021 reflected the responsiveness of the Fund in addressing key challenges confronting the Region. This included mitigating the impact of natural hazards and the SARS CoV 2 (COVID-19) pandemic, as well as addressing long‑standing structural issues such as stubborn pockets of poverty, implementation capacity deficits and the lack of competitiveness.  Consequently, total commitments in 2021 amounted to $60.7 mn of which $9.5 mn were loans were and $51.2 mn were grants.  However, a few factors constrained performance of the SDF in the first year of the programme.  The first is structural to the SDF, as performance is usually muted in the initial year of the cycle while countries formulate the use of SDF resources against new allocations, themes and set-asides.  Second, was the impact of the pandemic as mitigation measures such as stay-at-home orders and national lockdowns hindered both project appraisal and implementation.  

In December the Basic Needs Trust Fund (BNTF) of the Caribbean Development Bank (CDB/the Bank) launched its Tenth Cycle (BNTF 10) with over $47 mn[1]/ committed to supporting projects in nine countries[2]/.  BNTF 10 aims to improve access to quality education, water and sanitation, basic community access and drainage, livelihoods enhancement and human resource development.   Already, the nine participating countries (PCs) have submitted their country policy frameworks to guide the utilisation of resources.  With respect to disbursements, outlays were still taking place under BNTF 9 and were less than anticipated as they continued to be stymied by COVID-19 protocols.  Nevertheless, through robust engagement and the seizing of opportunities to advance work when restrictions were lifted, by the end of the year, BNTF was able to achieve results which included: 1,251 students (of which 444 females) who benefitted from resilient, modern infrastructure and improving the learning environment; and 373 households who also benefitted from improved water supply and sanitation services