The main purpose of the Caribbean Investment Facility (CIF) is to contribute to economic development and growth, integration at regional level and poverty reduction through the mobilization of resources for strategic economic infrastructure projects and for support to the private sector.
Established in 2012, the Caribbean Investment Facility (CIF) is one of the EU’s regional blending facilities, aiming at mobilising funds for development projects by combining grants from the European Development Fund (EDF) with other public and private resources such as loans from European and Regional Financial Institutions to leverage additional financing and achieve investments in infrastructure and support to the private sector.
Similarly to the other EU blending facilities, CIF acts as a catalyst to pool resources and to improve the coordination and coherence of donor actions, thus conforming to the principles of ownership, partnership and shared responsibilities set out in the Paris Declaration on Aid Effectiveness and the subsequent Accra Agenda for Action and Busan Partnership Agreement
CIF grants can support investments located in the 15 Caribbean countries, signatories of ACP-EU Partnership Agreement, which are: Antigua & Barbuda, Bahamas, Barbados, Belize, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, St Kitts & Nevis, St Lucia, Saint-Vincent and the Grenadines, Suriname and Trinidad & Tobago. CIF grants can also support regional operations covering two or more of the above countries.
For the period 2012-2015, the CIF resources come from the European Development Fund (EDF), the EU’s multiannual funding instrument to support countries in the African-Caribbean-Pacific (ACP) group. An overall amount of €70.2 million was allocated to CIF, including €40 million from the regional allocation and €30.2 million transferred from Guyana’s EDF National Indicative Programme.
The following objectives constitute CIF’s priorities, which are to:
Create better transport and energy infrastructures which promote interconnectivity, safety, security and efficiency
Improve access to Information and Communication Technology (ICT) infrastructures and improve coverage at lower cost
Establish better water and sanitation infrastructure
Promote infrastructure linked to disaster prevention or mitigation
Address social services’ infrastructure needs.
CIF provides its support through:
Risk capital and other risk sharing instruments.
The final beneficiaries of CIF are the Caribbean ACP countries which participate in the ACP-EU Partnership Agreement, either directly or indirectly through their central, regional or local administrations or semi-public institutions.
CIF sets up partnerships, pooling grant resources from the EDF and using them to leverage loans from multilateral and bilateral European Finance Institutions as well as from regional and multilateral Development Banks. These resources are often pooled together with contributions from partner countries and beneficiary institutions in the Caribbean.
To achieve these aims, in 2009-2016 the Facility has had at its disposal a total budget of approximately €323 million, made available under the EU’s Development Cooperation Instrument (DCI). Of this amount, LAIF has approved almost €305 million in grants to projects with a combined investment cost of over €8 billion.
More information can be found in the 2016 Operational Annual Report
The list of CIF financed projects can be found here.
For further information you can contact DEVCO CIF