Newsletter and Technical Publications
<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
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 productionEin 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
||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.
||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.
||There are also designs and plans for sewerage projects
in Grenada and St. Vincent.
||In Grenada the estimated cost of the projects are US$15 million
which will include the extension of the St. Georges sewerage system,
construction in the St. Johns area, and a sewerage system in Grenville.
||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
||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;
||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;
||In St. Johns, 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:
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%.
||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.
||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.
||Under the same programme, effluents and residues from 157 sugar refineries
are being utilized for the irrigation of sugarcane fields and as fertilizers.
||Finally, feed load residues are being utilized for soil improvement and
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
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
The project financed by the
IDB will cost US$ 36 million and has three components:
||secondary recovery project;
||waterflood project; and
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.