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United Nations Environment Programme
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<International Source Book On Environmentally Sound Technologies
for Wastewater and Stormwater Management>

9.9 Financing (Topic i)

In the Caribbean Region, many countries/Islands are receiving and producing exports and development of agriculture, services, also businesses, with the experience of improved and good livelihood in some of the Regional countries. But in many Regional countries, shortage of funds limits the experience of good livelihood. In the Regional countries, many products are sold to Regional countries, as well as to developed countries. Products exported include sugar, bananas, fruit, vegetables and cotton.

The banana agricultural industry has been supportive to some of the Regional countries by exportation to European countries, Canada and the USA. Some of the Regional Countries which export bananas include Dominica, Grenada, St. Vincent, St. Kitts and Jamaica. The export of sugar to the USA and European countries is generally from Barbados, St. Kitts and other regional countries.

But the major provision of finance in the Region is by “Tourism" which is due to the excellent existence of coastal areas, with good clean beaches for sea-bathing, diving to view marine ecosystems (coral reefs sea-grasses, fisheries), also the availability of boats for sailing and also viewing the sea and sea-bed ecosystems. Tourism contributes major income to Caribbean Regional countries, which include Barbados, Antigua, Jamaica, St. Lucia, Grenada, Tortola and St. Kitts. But to sustain the attractiveness of the countries/Islands, there needs to be the consistence of a high standard of environmental conditions. In coastal areas, marine and inland areas, with the protection of health there must be good quality water supply, also good management and operation of wastewater and stormwater, also the control and disposal of garbage.

As a result of the need for environmental improvement in some areas and Islands, financial assistance generally sought form international agencies, which include the Inter-American Development Bank (IADB), World Bank, PAHO, USAID and UNEP. Trinidad is one of the Regional countries requiring lesser financial assistance, as the country has the largest “oil productionEin the Region from which finance is obtained by export of oil and petrol. The British Virgin Islands (mainly Tortola and Virgin Gorda) and Turks and Caicos Islands receive financial assistance from the British Government. To assist with maintaining the high quality of health and environmental conditions, projects which are being financially assisted by International agencies and developed countries by loans and gifts in some Regional Countries/Islands include:-

a) The reconstruction of the Roseau Sewerage System in Dominica. There will be a sewage treatment plant at Baytown on the West, with a marine outfall 1000 feet (330 m) offshore, with the reported cost over US$13 million.
b) In Barbados, after construction of Bridgetown sewerage system, there is currently the construction of the south coast sewerage system: The IADB estimate of the project is US$25.4 million, but it is expected to cost over US$30 million.
c) There are also designs and plans for sewerage projects in Grenada and St. Vincent.
  (i) In Grenada the estimated cost of the projects are US$15 million which will include the extension of the St. George’s sewerage system, construction in the St. John’s area, and a sewerage system in Grenville.
  (ii) In St. Vincent, there is a planned extension of the Kingstown sewerage system, also a new sewerage system on the south coast. The estimated cost of the sewers is EC$22 million. The three (3) pumping stations and marine outfalls are estimated to cost EC$14 million.
d) In St. Lucia and Grenada there is need for sewage treatment plants, and there is also need to determine the location and lengths of outfall by oceanographic studies;
e) In Anguilla there is need for a sewerage system in the capital "The Valley" There is need to restrict pollution of groundwater in the flat terrain of the Island;
f) In St. John’s, the capital of Antigua, there is need for a sewerage system to reduce pollution of the Harbour and adjacent marine areas. The soil in the town is clay with no absorption of effluents. There is also need to improve the capacity of drains, also to statutorily impose restriction of disposing wastes in drains.

Finance is needed for connections, reconstruction, and in some cases improvement of wastewater and stormwater facilities for environmental and Public health improvement.

9.9.1 Government investments

According to CEP Technical Report No.33 (1994) a good example of this approach is the work that is being carried out in Cuba to reduce the impact of pollution loads affecting sensitive coastal areas. In this regard, the following actions are being undertaken:

a)

reduction of the oil and grease pollution loads affecting the waters of Havana Bay. In order to achieve this goal the Government of Cuba established a programme to control point and non-point sources.

The non-point sources were related to the discharge of used oil from automobiles. This oil is collected from gas stations for reprocessing. Originally, these oil was continuously discharged into the sewage system, thus polluting the waters of the Bay.

Concerning the control of point-sources of oil pollution, investments were made to reduce the loads originating from the oil refinery and the gas plant. This caused in the oil pollution in Havana Bay to be reduced by 50%.

b) At the national level, the Government is enforcing strict comprehensive regulations for the establishment of new industries along coastal areas based on environmental impact assessments.
c) 2000 oxidation ponds and lagoons were constructed for the treatment of domestic wastes from small communities and organic wastes from food processing plants and paper mills. Previously, the above wastes were discharged into rivers, some of them reaching coastal areas.
d) Under the same programme, effluents and residues from 157 sugar refineries are being utilized for the irrigation of sugarcane fields and as fertilizers.
e) Finally, feed load residues are being utilized for soil improvement and energy production.

9.9.2 International financial assistance

To remedy some of the most pressing pollution control problems some countries (especially island countries) have resorted to international assistance, for example through the International Development Bank (IDB).

The Government of Barbados negotiated with the IDB a loan to improve the sewerage system in the city of Bridgetown (35,000 inhabitants). That project was completed in 1982. The project included the appropriate collection of sewage wastewaters and pumping systems, the construction of a secondary sewage treatment plant and marine outfall 300 meters long. The project was financed through the loan from IDB for US$ 29 million with a contribution of US$ 2.7 million from the Government of Barbados.

A second loan was recently obtained to treat sewage wastewater generated by hotels and the local population along the southern coast of Barbados. The project includes a collector, a primary sewage treatment plant and the construction of a marine outfall 1.1 km. long. This project will be financed through a loan from the IDB for US$ 51 million and from the European Investment Bank (EIB) for US$ 11 million with a contribution of 11 million from the Government of Barbados.

In the case of Costa Rica a project for the rehabilitation of the sewerage system of the city of Limóln, that was destroyed by an earthquake in April 1991, has being negotiated with the IDB for a loan of US$ 5 million. At this point it will be necessary for the Government of Costa Rica to negotiate an additional loan to build an outfall to discharge primary treated wastewaters into the coastal environment.

Trinidad and Tobago successfully negotiated an IDB loan for the improvement of an oil refinery located at Point-à-Pierre on the west coast of Trinidad. The purpose of the project is to strengthen the capacity of Trinidad and Tobago to exploit the oil and gas of resources by boosting the capacity of the old oil refinery at Point-à-Pierre. This will allow the refinery to produce products of high market value and to enhance oil recovery in the production field.

The project financed by the IDB will cost US$ 36 million and has three components:

(i) secondary recovery project;
(ii) waterflood project; and
(iii) refinery up-grade.

The execution of these components will assist in reducing land-based sources of oil pollution, such as "produced waters", treatment facilities, sulphur recovery unit, etc.

9.9.3 Service and pollution taxes

There are clear advantages in developing financially self-sufficient systems to control pollution loads from land-based sources, for example, in the Netherlands Antilles (Curaçlao, Bonaire, Saba, St. Eustatious and St. Maarteen) a tax system to finance sewage treatment plants is being developed.

In the particular case of the island of Curaçlao, the implementation of the so called sewage structure plan will demand an investment of US$ 110 million over a period of nine years. This plan does not include the construction of sewerage systems for new housing industrial developments. The necessary funds will be obtained from Government sources through a combined sewage and pollution tax.

To finance the "sewerage structure plan" a household tax of US$ 56 per year will be levied to provide an estimated revenue of US$ 16.7 million over a period of nine years. An additional pollution tax of US$ 33 per household will provide US$ 10 million for the same period. Finally, an amount of US$ 12.8 million will be obtained from the sale of treated sewage waters.

With reference to the Island of Bonaire financing for the sewer structure plan" will require investment of US$ 10 million. Proposals have not yet been completed for the Islands of Saba, St. Eustatious and St. Maarteen.

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