Barbados to Strengthen Water Security with World Bank Support

Washington, D.C., May 20, 2026: The World Bank's Board of Executive Directors has approved the Barbados Water Security and Sector Performance Program, a new project that will strengthen water security in Barbados, helping to reduce water losses, expand sanitation services and protect livelihoods which depend on reliable water services.

Barbados is one of the most water-scarce countries in the world. The island relies on groundwater for 86 percent of its water supply and is already extracting nearly as much groundwater as can be safely removed each year without causing permanent damage to its reserves, while water demand is projected to grow by 30 percent by 2050. The Barbados Water Authority (BWA) currently loses about 50% of all water produced before it reaches consumers - through leaking pipes, inaccurate meters, and billing gaps. Approximately 80 percent of the island's land area is vulnerable to groundwater contamination from poorly managed sewage disposal. Untreated waste reaching coastal waters impacts marine ecosystems which tourism and jobs depend on.

The US $54.7 million program addresses these challenges across three areas. The first focuses on modernizing the BWA's operations - deploying a private sector partner to work alongside utility staff, improving billing and metering systems, reducing pipe losses, and increasing revenues. The second expands sanitation services, supporting 2,000 new household sewage connections and introducing regulations for the safe collection and treatment of waste. The third strengthens governance, establishing a national groundwater monitoring system and a high-level coordination body linking water management to agriculture, energy, and climate planning.

"By improving how the utility operates, expanding sanitation, and strengthening water governance, this program directly supports economic growth and resilience in Barbados. Over the lifetime of the project the program is expected to generate and protect up to 58,000 jobs," said Lilia Burunciuc, World Bank Director for the Caribbean.

The Barbados program is phase 1 of the Caribbean Regional Water Security Program, a regional initiative also covering Dominica, Grenada, Jamaica, and Saint Lucia. The program comprises a US$4.7 million grant from the International Bank for Reconstruction and Development (IBRD) Surplus-Funded Livable Planet Fund and US$50 million in financing from IBRD.

The program uses a Program-for-Results approach, in which financing is released only when specific, independently verified results are achieved, including reduced water losses, improved customer service, and completed regulatory reforms.

The program will be implemented over five years by the Barbados Water Authority.

Learn more about the World Bank in Latin America and the Caribbean: https://www.worldbank.org/en/country/caribbean

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