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Saint Lucia: Issues Paper on Climate Change Adaptation & the Water Sector April 2009Figure 2 : Saint Lucia Water Cycle, Associated Legal Instruments and Main Actors[Source : CANARI, T. Geoghegan, 2002]5.3 National Sources of Finance and Investment for the SectorTo date water sector reform initiatives have been financially supported by the following :Government of Saint Lucia, World Bank, Caribbean Development Bank, EuropeanUnion, Government of France (AFD). It is expected that there will continue to be donorsupport for the sector. As well, with the new regime of private sector involvement it isexpected that much needed investments will also be met by private sector interests.Since 1998, Government of Saint Lucia recognized the need for reforming the WaterSector. The major reasons being the poor performance, unreliability of supply, lowcoverage of sewerage, poor financial performance and low level of capital investmentfaced by the then Water Company. The Water Sector Reform Project (funded by theCaribbean Development Bank, the World Bank, WASCO and the Government of SaintLucia, EC$ 24 million) aimed to prepare an adequate legal and regulatory framework forthe private delivery of water and sanitation services throughout Saint Lucia. Theproject’s objective was to prepare the Water Company for the transition from a publiclymanaged utility, to a privately managed and operated company. Additionally, thePage | 14
Saint Lucia: Issues Paper on Climate Change Adaptation & the Water Sector April 2009project aims to safeguard the integrity of the critical water supply and wastewaterservices infrastructure through the implementation of urgently needed capital works inthe region of EC$ 1.7 billion over a period of 30 years. Table 2 illustrates some criticalinvestments anticipated in the short to medium term financed by the new watercompany, the Government of Saint Lucia, and various lending institutions and aidagencies.One of the major components of the Project was the strengthening of the Legal andRegulatory Framework. To this end Government focused on drafting the necessary laws,regulations and licenses for the sector. This is expected to facilitate significant andsustainable private sector participation in the water and sewerage sector while protectingthe interests of Saint Lucia’s consumers.Another component was the strengthening of the Environmental and Water ResourceManagement Framework. This is intended to create an enabling environment and waterresource management framework for the delivery of sustainable water supply andsewerage services and to integrate water supply needs with environmental management.An Institutional Strengthening Program within the Water Company aimed to enhance thecapacity of the company, with a view to improving the delivery of reliable andresponsive service to its customers in the short to medium term. This involves thedevelopment and application of relevant industry accepted technical, financial,accounting and commercial information systems and procedures and appropriate stafftraining in key operational areas to upgrade their skills.The implementation of a critical capital works program was another aspect of theproject. Due to the age of the system components, many facilities are approaching orreaching the end of their operating life. The objective of the program is to preventfurther deterioration of the water supply and sewerage system, through theimplementation of critical capital works to impact positively on the reliability and qualityof service in the short term. The rehabilitation works that are planned under the projectare those urgently needed to enhance the reliability of the system and to ensure that theimprovements to these systems redound to the benefit of the population. Additionally,the improved systems are more likely to attract private sector capital, to fund furtherexpansion and upgrading of the water supply and sewerage networks.The projects currently being implemented in the sector are critical to mitigate against theproblems resulting from the inadequate water supply systems island wide. It is thereforeimportant these be taken into consideration as any scheme of adaptation options shouldbe in synergy with each other and benefit from each other. It is further suggested that ascheme be devised to apportion cost to climate change adaptation as some of therecommendations are required without any climate change impacts.Page | 15
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