Report No: ICR00095
IMPLEMENTATION COMPLETION AND RESULTS REPORT
IDA-64170, IDA-67040, IDA-67030, IDA-69370
ON A
CREDIT
IN THE AMOUNT OF US$120 MILLION
TO THE
SAINT VINCENT AND THE GRENADINES
FOR THE
FISCAL REFORM AND RESILIENCE DEVELOPMENT POLICY CREDIT PROGRAMMATIC SERIES
September, 2024
Regional Department for the Environment
Latin America And Caribbean
The World Bank
Fiscal Reform and Resilience Development Policy Credit Programmatic Series ICR DOCUMENT
CURRENCY EQUIVALENTS
(Exchange Rate Effective {Jul 31, 2024})
Currency Unit = EC$
EC$ 2.70 = US$1
US$ 1.32 = SDR 1
FISCAL YEAR
July 1 – June 30
Regional Vice President: Carlos Felipe Jaramillo
Country Director: Lilia Burunciuc
Regional Director: Benoit Bosquet
Practice Manager: Cary Anne Cadman
Task Team Leader (s): David MacWilliam, Keren Carla Charles
ICR Main Contributor: Apoorva Shenvi
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Fiscal Reform and Resilience Development Policy Credit Programmatic Series ICR DOCUMENT
ABBREVIATIONS AND ACRONYMS
CAD Current Account Deficit
Cat DDO Catastrophe Deferred Drawdown Option
CBF Caribbean Biodiversity Fund
CDB Caribbean Development Bank
DPC Development Policy Credit
DPF Development Policy Financing
DRF Disaster Risk Financing
DRM Disaster Risk Management
ECCB Eastern Caribbean Central Bank
ECCU Eastern Caribbean Currency Union
EIA Environmental Impact Assessment
FDI Foreign Direct Investment
GDP Gross Domestic Product
GoSVG Government of Saint Vincent and the Grenadines
IBRD International Bank for Reconstruction and Development
IAB Interim Assistance Benefits
IDA International Development Association
IMF International Monetary Fund
ISR Implementation Status and Results
MOE Ministry of Education
MOF Ministry of Finance
MTDS Medium‐Term Debt Management Strategy
MTFF Medium‐Term Fiscal Framework
NAP National Adaptation Plan
NESDP National Economic and Social Development Plan
NOPSAP National Oceans Policy and Strategic Action Plan
OECS Organization of Eastern Caribbean States
PA Prior Action
PDO Program Development Objective
PFM Public Financial Management
PLR Performance and Learning Review
PPU Physical Planning Unit
PPWS Priority Pollution Watch Sites
RI Results Indicator
RPS Regional Partnership Strategy
SOE State-owned Enterprises
SVG Saint Vincent and the Grenadines
SVGCF Saint Vincent and the Grenadines Conservation Fund
TA Technical Assistance
TNC The Nature Conservancy
TUB Temporary Unemployment Benefit
VAT Value-added Tax
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Fiscal Reform and Resilience Development Policy Credit Programmatic Series ICR DOCUMENT
TABLE OF CONTENTS
DATA SHEET ................................................................................................................................................. i
I. PROGRAM CONTEXT AND DEVELOPMENT OBJECTIVES .................................................................................2
II. ASSESSMENT OF KEY PROGRAM DESIGN AND OUTCOMES ...........................................................................7
III. OTHER OUTCOMES AND IMPACTS ............................................................................................................. 24
IV. BANK PERFORMANCE................................................................................................................................ 26
V. RISK TO SUSTAINABILITY OF DEVELOPMENT OUTCOMES ............................................................................ 27
VI. LESSONS AND NEXT PHASE ........................................................................................................................ 28
ANNEX 1. RESULTS FRAMEWORK ...................................................................................................................... 30
ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ....................................................... 33
ANNEX 3. BORROWER, CO-FINANCIERS, AND OTHER DEVELOPMENT PARTNERS’/STAKEHOLDERS’ COMMENTS . 36
ANNEX 4. SECTORS AND THEMES ...................................................................................................................... 37
ANNEX 5. SUPPORTING DOCUMENTS ................................................................................................................ 39
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Fiscal Reform and Resilience Development Policy Credit Programmatic Series ICR DOCUMENT
DATA SHEET
@#&OPS~Doctype~OPS^dynamics@icrdpfseriesbasicdata#doctemplate
PROGRAM SERIES
Program Information
Operation Short
Operation ID Position in series Status Operation Name
Name
SVG Fiscal
First Fiscal Reform and Resilience
P165220 First Closed Reformand
Development Policy Credit
Resilience DPF I
SVG 2nd Fiscal
Second Fiscal Reform and Resilience
P169956 Last Closed Reform &
Development Policy Credit with a Cat DDO
Resilience DPC
Program Series Amounts (USD)
Operation ID Ln/Cr/TF Approved Amount Disbursed Amount
IDA-69370 50,000,000.00 50,000,000.00
P169956 IDA-67040 20,000,000.00 20,000,000.00
IDA-67030 20,000,000.00 20,000,000.00
Total 90,000,000.00 90,000,000.00
DPF Options
P169956
Crisis or Post Conflict No
Regular Deferred Drawdown Option No
Catastrophe Deferred Drawdown Option Yes
Sub-National Lending No
Special Development Policy Lending No
CLIENTS
Operation ID Borrower/Recipient Implementing Agency
i
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Fiscal Reform and Resilience Development Policy Credit Programmatic Series ICR DOCUMENT
P165220 Ministry of Finance
P169956 Ministry of Finance Ministry of Finance
PROGRAM DEVELOPMENT OBJECTIVE
Program Development Objective
The development objective is to support the GoSVG in: (i) responding to the COVID-19 pandemic to protect the
vulnerable; (ii) strengthening fiscal resilience; and (iii) enhancing climate and disaster resilience.
@#&OPS~Doctype~OPS^dynamics@icrdpfseriesfinancing#doctemplate
FINANCING
Original Amount Revised Amount Actual Disbursed
Financing Source Operation in series
(US$) (US$) (US$)
World Bank Financing 120,000,000.00 120,000,000.00 120,000,000.00
IDA-69370 P169956 50,000,000.00 50,000,000.00 50,000,000.00
IDA-67040 P169956 20,000,000.00 20,000,000.00 20,000,000.00
IDA-67030 P169956 20,000,000.00 20,000,000.00 20,000,000.00
IDA-64170 P165220 30,000,000.00 30,000,000.00 30,000,000.00
Total 120,000,000.00 120,000,000.00 120,000,000.00
KEY DATES
P169956
Concept Review 14-Jul-2019
Decision Review 30-Apr-2020
Approval 24-Jun-2020
Effectiveness 22-Jul-2020
Original Closing 29-Jun-2023
Actual Closing
@#&OPS~Doctype~OPS^dynamics@icrdpfratings#doctemplate
RATINGS SUMMARY
Overall Outcome Relevance of Prior Actions Achievement of Objectives (Efficacy)
Satisfactory Satisfactory Satisfactory
ii
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Fiscal Reform and Resilience Development Policy Credit Programmatic Series ICR DOCUMENT
Bank Performance
Satisfactory
iii
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Fiscal Reform and Resilience Development Policy Credit Programmatic Series ICR DOCUMENT
ADM STAFF
At ICR
Practice Manager Cary Anne Cadman
Regional Director Benoit Bosquet
Global Director Valerie Hickey
Practice Group Vice President Juergen Voegele
Country Director Lilia Burunciuc
Regional Vice President Carlos Felipe Jaramillo
ADM Responsible Team Leader David MacWilliam
Co-Team Leader(s) Keren Carla Charles
At Approval of P165220
Practice Manager Jorge A. de Thompson R. Araujo
Global Director Marcello de Moura Estevao Filho
Practice Group Vice President Ceyla Pazarbasioglu
Country Director Tahseen Sayed Khan
Regional Vice President Axel van Trotsenburg
ADM Responsible Team Leader David MacWilliam
Co-Team Leader(s) Ana Luisa Gomes Lima
At Approval of P169956
Practice Manager Valerie Hickey
Regional Director Anna Wellenstein
Global Director Karin Kemper
Practice Group Vice President Juergen Voegele
Country Director Tahseen Sayed Khan
Regional Vice President J. Humberto Lopez
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Fiscal Reform and Resilience Development Policy Credit Programmatic Series ICR DOCUMENT
ADM Responsible Team Leader David MacWilliam
Co-Team Leader(s) Keren Carla Charles
I. PROGRAM CONTEXT AND DEVELOPMENT OBJECTIVES
1. The Saint Vincent and the Grenadines Fiscal Reform and Resilience Development Policy Credit (DPC) was designed
as a programmatic series of two Development Policy Financing (DPF) operations for Saint Vincent and the Grenadines (SVG)
and was the World Bank’s first DPF engagement in the country. The first operation, P165220, was approved on June 5, 2019,
and became effective on July 16, 2019. The second operation, P169956, which was approved on June 25, 2020, and became
effective on July 23, 2020, was originally planned as a multi-sectoral DPF operation, with the Bank pursuing a Catastrophe
Deferred Drawdown Option (Cat DDO) operation in parallel. However, with the onset of the COVID-19 pandemic coinciding
with the preparation of these operations, they were combined into a single operation to reduce the administrative burden
on the government. The design of the second operation was adjusted to reflect the impact of COVID-19-related closures on
SVG’s economy along with the institutional capacity limitations posed by pandemic response efforts. In April 2021, as the
COVID-19 crisis was starting to wind down, La Soufrière volcano, an active volcano on Saint Vincent started erupting causing
extensive destruction. The Cat-DDO was disbursed and a supplemental financing operation for the second DPC, P176822,
was approved on June 25, 2021, to meet the unanticipated financing needs that arose from this disaster.
A. CONTEXT AT APPRAISAL
Country Context
2. SVG is a middle-income, tourism-based, small island economy heavily reliant on its natural environment and
highly vulnerable to natural disasters. The country’s marine and coastal ecosystems provide a wide array of economic
goods and services such as fishing, tourism and recreation that support livelihoods. SVG’s natural assets are crucial for
sustenance of fauna, erosion prevention, and coastal protection. They also play a pivotal role in reducing the country’s
vulnerability to natural disasters such as hurricanes and tropical storms, which pose the greatest risk of physical damage
and economic disruption. SVG is also prone to volcanic activity, earthquakes, tsunamis, and occasional floods independent
of storm events. In recent years, an increase in the frequency and severity of such events has disrupted livelihoods and
economic production, destroyed physical infrastructure, and imposed high costs for reconstruction and rehabilitation.
Notable examples include heavy rains in December 2013, and October/November 2016 that resulted in extensive physical
damage and economic losses estimated at 15 percent and 5 percent of Gross Domestic Product (GDP) respectively, and
the volcanic eruptions of April 2021 that forced the evacuation of over 20 percent of the population.
3. Economic activity and infrastructure in SVG are concentrated along the coast, with a significant portion of the
country’s population living in low‐lying coastal areas. More than 90 percent of SVG’s physical infrastructure which is
imperative for emergency response (e.g., roads, airports, telecommunication networks) lies on a narrow coastal belt less
than eight meters above sea‐level and is highly susceptible to extreme weather events. The impact of these events, which
are becoming more intense due to climate change on such infrastructure and SVG’s economy more broadly, have been
magnified by unsustainable practices such as poorly planned coastal development and protection, uncontrolled sand
mining, land‐based and marine pollution, and overfishing, which have also eroded the country’s natural assets. High
dependence on tourism and the natural environment coupled with exposure to hydrometeorological and geophysical
hazards have exacerbated SVG’s physical and economic vulnerability and limited the country’s fiscal space due to increased
emergency response needs coupled with loss in revenues. Additionally, damages to productive infrastructure due to
recurring natural disasters have increased fiscal pressures, leading to rising debt levels.
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4. Leading up to this DPC series, the Government of SVG (GoSVG) had embarked on a series of policy reforms to
improve its fiscal position, enhance blue growth prospects, and strengthen climate resilience. On the fiscal front, it was
pursuing reforms in expenditure control and tax policy to generate higher revenues and create fiscal buffers, as well as in
the governance of state-owned enterprises (SOEs) to enhance transparency and improve oversight. In the years leading up
to these operations, the GoSVG had achieved primary fiscal balance surpluses despite investing in large public investment
projects such as a new international airport. In addition, it was implementing a Medium‐Term Debt Management Strategy
(MTDS) that was developed in conjunction with the World Bank, the International Monetary Fund (IMF) and the Eastern
Caribbean Central Bank (ECCB)1. These efforts were expected to enable further fiscal consolidation and strengthen the
resilience of SVG’s medium‐term fiscal framework (MTFF) to maintain primary fiscal balances and reduce public debt.
Alongside fiscal measures, the GoSVG was undertaking a set of reforms to ensure sustainable use of natural resources
while unlocking growth from SVG’s coastal and marine assets. It was also seeking to limit the impact of natural disasters,
particularly hurricanes, on its physical and natural environment and enhance its resilience to these shocks by strengthening
land use planning and building standards. These efforts were meant to protect people and livelihoods and alleviate fiscal
pressures by reducing post-disaster relief and reconstruction costs.
Sector Context
5. At the time of appraisal of the first DPC, SVG was experiencing low growth with improvements in tourism
infrastructure expected to moderately accelerate growth over the medium‐term. Closure of the largest mainland hotel
in the country in late 2016 took a toll on SVG’s tourism sector, slowing growth throughout 2017. Growth picked up
moderately in 2018, to 2.0 percent, with higher tourist arrivals following the opening of the new Argyle International
Airport, and the scheduling of new direct international flights. A decline in the import of capital goods with the completion
of the new airport along with an increase in exports of agricultural products to regional markets helped narrow SVG’s
current account deficit (CAD) compared to preceding years. However, being a small island state, the country remained
highly import dependent with the CAD amounting to 17.2 percent of GDP in 2017, a large portion of which was being
financed by foreign direct investment (FDI) together with tourism receipts and remittances. 2 The Eastern Caribbean
Currency Union (ECCU), of which SVG is a member, was effective in maintaining a low inflation rate averaging around 2.0
percent annually. Real GDP growth was projected to rise to 2.1 percent in 2019 and 2.5 percent over the medium‐term,
driven largely by an increase in tourist arrivals due to improved air connectivity and the planned reopening of Saint
Vincent’s largest hotel.
6. Debt was on a downward trajectory, but the country was at a high risk of debt distress. At appraisal, SVG’s fiscal
deficit had been reduced and the primary budget surplus sustained over preceding years.3 In 2018, debt had fallen to 73.0
percent of GDP after peaking in 2016 at 82.9 percent of GDP because of public financing for the Argyle airport and post‐
disaster reconstruction. While this put SVG on a clear trajectory towards the public debt target of 60 percent of GDP set
by ECCU for 2030, low growth and recurrent natural disasters posed risks.
7. Despite the substantial risks, SVG’s macroeconomic policy framework was deemed adequate at appraisal. The
projected improvement in growth over the short- and medium-term, consistently low inflation, and the GoSVG’s
commitment to reduce debt to sustainable levels provided a sound macroeconomic outlook for the country. Furthermore,
continued efforts on the fiscal front to generate higher revenues and maintain primary budget surpluses were expected to
build fiscal buffers to natural disasters and other shocks, support further consolidation, and strengthen fiscal resilience.
The key economic indicators at the time of appraisal are provided in Annex 5.
1 SVG is a member of the ECCU and its monetary policy and bank supervision are managed by the ECCB.
2 Net FDI amounted to 12.5 percent of GDP in 2018 and was concentrated in the tourism sector. Tourism receipts exceed 25 percent of GDP in a
typical year.
3 The GoSVG incurred a fiscal deficit of 0.5 percent of GDP in 2017 (including grants) and 2.0 percent in 2018. The primary balance showed a similar
trend, with a 1.9 percent of GDP surplus in 2017 and 0.6 percent in 2018.
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Rationale for Bank Assistance
8. The fiscal resilience and climate and disaster resilience agendas are inextricably linked in small island states
like SVG whose economies rely heavily on the natural environment and are highly vulnerable to natural disasters and
climate change. This two-operation programmatic DPC series was designed to support the GoSVG’s concerted efforts to
build fiscal resilience through strengthened fiscal policy and public financial management (PFM), and to enhance the
country’s resilience to natural disasters and climate change. The National Economic and Social Development Plan (NESDP)
2013-2025, which outlines the GoSVG’s development vision and strategy, includes specific mutually reinforcing and
complementary actions related to (i) maintaining strong macroeconomic fundamentals; (ii) enhancing accountability and
efficiency in public goods and services provision; (iii) preparing for, responding to, and mitigating disasters; (iv) conserving
natural resources; (v) ensuring a clean, and safe environment; and (vi) reducing the adverse impacts of climate change,
which are intended to enable SVG to attain these priorities. In addition, the GoSVG had developed a Climate Change Policy
and a National Adaptation Plan (NAP) to strengthen its climate resilience. Finally, having made significant strides in
enhancing its disaster readiness capabilities in the preceding two decades, SVG also had a well-established legal and
institutional framework for managing disaster risks. Disaster preparedness and response, including responses to health
emergencies, were implemented under the authority of the National Emergency and Disaster Management (NEDM) Act
No. 15 of 2006, the Emergency Powers Act No. 45 of 1970, and the Natural Disaster (Relief) Act of 1947, through the
National Emergency Management Organization. Nevertheless, SVG’s legal, institutional and policy frameworks governing
disaster risk management (DRM) had a strong orientation to disaster preparedness, response and recovery, and lesser
emphasis on disaster risk prevention and ex-ante risk reduction and financing. Establishing a robust climate and disaster
risk management system required additional policy measures that facilitate disaster risk prevention and financing and
strengthen emergency preparedness at the sectoral levels, some of which were supported through this program. This DPC
series was designed to support the GoSVG in advancing actions related to enhancing fiscal and climate resilience from the
NESDP in an integrated manner and mainstream climate and disaster resilience into its broader development agenda.
9. This program was well aligned with the 2018 Performance and Learning Review (PLR) of the Regional
Partnership Strategy (RPS) for the Organization of Eastern Caribbean States (OECS) for the period FY15-19. This DPC
series directly reflected the RPS’ enhanced goal to deepen policy and institutional reform engagement on macro‐fiscal
issues, the blue economy, and environmental resilience through budget support operations in IDA-eligible countries and
technical assistance and advisory services in IBRD countries. It drew on several key lessons learned from the PLR, including
the need for (i) the Bank to play a more active role in strengthening resilience-building across broader macro-fiscal, financial
and climatic-resilience dimensions; (ii) enhancing policy engagement in SVG with a strong emphasis on resilience building
to produce long-term dividends; and (iii) employing more selectivity, consolidation, and less complexity in Bank-supported
interventions given the severe capacity constraints in small island states. As the first DPF operation extended to SVG and
given the capacity constraints, the preparation of this operation required deeper stakeholder consultations and greater
Bank support through knowledge sharing and technical assistance (TA).
10. A programmatic approach was chosen to develop a sequenced and coherent reform program to ensure
adequate follow-up and implementation. It comprised two intertwined pillars focused on fiscal resilience, and climate and
disaster resilience and included measures to increase fiscal space, create fiscal buffers, improve PFM, promote growth in
blue economy sectors (nature‐based tourism and fisheries), and strengthen the resilience of SVG’s physical and natural
environment to shocks. Built on extensive upstream policy engagement with SVG in previous years in the areas of
infrastructure resilience, PFM, and fiscal and budget management, this programmatic approach was deemed necessary to
reinforce the effective implementation of supported reforms, and to enable the Bank to provide technical support to the
GoSVG in designing and implementing the policy reforms. 4 Furthermore, in addition to supporting policy reforms to
4Substantive TA was provided in support of reforms related to procurement, SOE oversight, contingency fund creation and management, and
taxation as well as for designing the national business plan for aquaculture development.
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increase SVG’s resilience to natural disasters, the second DPC operation in the series was combined with a Cat DDO to
provide quick‐disbursing financing to SVG in the immediate aftermath of a natural disaster. This was meant to complement
the GoSVG’s other financing options that help transfer risks from disasters and other shocks rather than relying primarily
on debt, thus augmenting its financial capacity to respond to such emergencies and limiting their impact on the overall
fiscal space.5
11. The Cat DDO was included in the second operation to facilitate and simplify the planning, design, and
negotiations around the two credits. There was considerable discussion around incorporating the Cat DDO into the second
operation, both within the team, with Bank management, and with the GoSVG. In the end, it was decided to proceed with
a single operation with two separate credits, rather than two individual operations. This was predicated on the fact that
the COVID-19 pandemic impinged on the authorities’ time and attention in an environment of already limited capacity,
and the attendant advantages associated with the ability to design and implement a more coherent and integrated single
operation. In this respect, combining the two operations allowed for a single undertaking that led to greater coherence
across pillars and a more sequenced and coordinated program of reforms.
12. Supplemental financing of US$50 million was provided after the April 2021 volcanic eruptions. Given the
significant need for fiscal resources to respond to both the humanitarian needs of the disaster as well as recovery,
rehabilitation, and reconstruction demands, a supplementary financing operation was seen as the most appropriate vehicle
to provide rapid financing that could be accessed by the GoSVG relatively quickly. Having to simultaneously manage the
demands emanating from the COVID-19 pandemic, the GoSVG had limited capacity to implement additional reforms that
would have to accompany a new DPF series. Furthermore, the authorities were continuing to implement the reform
program supported by this operational series and the macroeconomic framework continued to be adequate.
Original Program Development Objective(s) (PDO) (as approved)
The Program Development Objectives were to support the GoSVG in: (i) strengthening fiscal policy and public financial
management; and (ii) strengthening climate resilience and adaptation.
Original Policy Areas/Pillars supported by the Program (as approved)
In line with the PDO, the series supported the following policy areas:
• Pillar 1: Strengthening Fiscal Policy and Public Financial Management (PFM): Reforms under this policy area focused on
creating the necessary fiscal space through both revenue and expenditure measures to maintain primary budget
surpluses and build fiscal buffers to improve fiscal resilience. The package of reforms aimed to address issues related to:
budget planning; the creation of fiscal buffers and fiscal rules; spending effectiveness and efficiency; domestic resource
mobilization; and strengthening SOE oversight to tackle contingent liabilities and transfers. While these reforms are
relatively typical PFM-related reforms, in the context of a highly vulnerable small island state such reforms are even more
relevant given the need to strengthen resilience to climate and other natural disasters shocks. Hence, the reforms in
Pillar 1 should be viewed in the context of the broader program and supportive of the other pillars focused more directly
on resilience.
• Pillar 2: Strengthening climate resilience and adaptation: Reforms under this policy area focused on enhancing the
resilience of SVG’s physical infrastructure and natural environment to reduce the country’s vulnerability to natural
disasters and resultant recovery costs, as well as promoting sustainable practices to protect coastal and marine
ecosystems. The package of reforms comprised measures related to: land use planning and building codes; reduction in
coastal sand mining; ocean governance and coastal and marine spatial planning; phase out of single-use plastic bags and
5For example, SVG is a member of the Caribbean Catastrophe Risk Insurance Facility (CCRIF) with insurance coverage that provides rapid financing
for disaster relief. SVG has already received multiple payouts under the CCRIF and continues to benefit from coverage.
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standards for effluent discharges; strengthening the financial and institutional capacity of the Saint Vincent and the
Grenadines Conservation Fund (SVGCF); and improving management of the fisheries and aquaculture sector.
B. SIGNIFICANT CHANGES DURING IMPLEMENTATION
13. Starting in 2019, the need to direct substantive public investment towards the modernization of the 50-year-
old Port of Kingstown had considerable implications for SVG’s fiscal deficit over the medium -term. As the main seaport
of entry into SVG, the Port of Kingstown is a strategic national asset critical to economic development. The aging port had
far exceeded its original design life of 30 years, with structural defects rendering some sections unusable and making
operations inefficient and unsafe. In addition to the urgency of restoring the port’s structural integrity to ensure safe
operations, there was also a need to address traffic congestion at the port from an increase in cruise arrivals that was
expected to be aggravated by the return of break bulk and container cargo to the port. With its suboptimal operations
negatively impacting border security, trade, economic efficiency, and ultimately its earning potential, the port needed
immediate modernization amounting to US$185 million. Work on the port commenced in 2019 financed through loans
from the Caribbean Development Bank (CDB) and grants from the United Kingdom and is expected to be completed by
2025. Modernizing the port represented a public investment of more than 20 percent of SVG’s GDP, given the size of the
small island economy. Even though the need for this expenditure was anticipated, its scale, especially in comparison to the
overall budget presented a short-term fiscal challenge.
14. The COVID-19 pandemic caused further significant economic, social, and fiscal stress to SVG. The tourism sector,
which accounted for approximately 25 percent of SVG’s GDP and nearly 50 percent of total exports pre -pandemic, came
to a standstill, resulting in significant job losses and reduced income for many households. A sizable increase in government
spending was needed to control the spread of COVID-19, provide medical care to infected people, and mitigate the impacts
of productivity loss due to containment measures. In March 2020, the GoSVG announced a fiscal stimulus package which
supported increased healthcare expenditure, waived value-added tax (VAT) and duties on health and hygiene products,
provided relief to the hardest hit sectors (i.e., tourism, transport, and agriculture), broadened social safety nets, and
deferred payment of personal income taxes and various license fees. A decline in revenue owing to the reduction in
economic activity, and tax relief combined with increased expenditures on measures to alleviate the health-related and
socioeconomic impacts of the pandemic further compounded SVG’s fiscal deficit and public debt, emphasizing the need
for strengthening fiscal resilience and the creation of fiscal buffers.
15. In April 2021, the La Soufrière volcano, started a series of explosive eruptions that led to extensive economic
and humanitarian impacts. An estimated 22,800 persons (about 21 percent of the population) were displaced and damage
to agriculture, fisheries, and forests in the high-exposure zones around the volcano amounted to 90 to 100 percent in
losses. With the agriculture sector contributing around 10 percent of SVG’s GDP and with over 40 percent of the country’s
agricultural output produced in the affected areas, the disaster significantly not only affected the island’s food security and
livelihoods, but also the overall economy at a time when the GoSVG was still managing the economic fallout of COVID-19.
Cumulatively, the eruption generated an estimated gross financing needs of US$175 million (23 percent of the GDP) in
20216. While the GoSVG remained committed to the implementation of the reform program supported under this DPC
series, the volcanic eruption posed significant challenges to continued policy implementation and medium-term results.
Revised Program Development Objectives (PDOs)
The revised program development objectives in the second operation were to support the GoSVG in: (i) responding to the
COVID-19 pandemic to protect the vulnerable; (ii) strengthening fiscal resilience; and (iii) enhancing climate and disaster
resilience. The additional COVID-19 objective was included in the second operation in the DPC series to recognize and
6 International Monetary Fund: IMF Country Report No. 21/157.
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support the GoSVG’s efforts to protect the vulnerable during the COVID-19 pandemic. The revised program objective also
reflects the inclusion of a Cat DDO by adding “enhancing . . . disaster resilience” as the third program objective.
Revised Policy Areas/Pillars supported by the Program
16. The pillars from the first operation were restructured to accommodate a new pillar focused on COVID-19 response
under the second operation. As the first pillar under DPC2, this pillar supported select measures and programs instituted
by the GoSVG to protect the vulnerable from the social and economic impacts of the pandemic and included new results
indicators related to these interventions. The first pillar from DPC1 became Pillar 2 in DPC2. The targets for two results
indicators under this pillar were revised to reflect the impact of the COVID-19 pandemic and the port modernization
project. Pillar 2 from DPC1 was converted to Pillar 3 in DPC2 and revised to reflect the Cat DDO financing instrument. Under
this pillar, six results indicators were revised, one results indicator was dropped, and a new results indicator was added to
accommodate changes in the scope of associated reforms and/or impact of the pandemic. Changes related to results
indicators and targets are described in the subsequent section.
II. ASSESSMENT OF KEY PROGRAM DESIGN AND OUTCOMES
17. This programmatic DPC series’ design and outcomes are rated Satisfactory. The policy areas under both
operations in the series were consistent with the Program’s stated objectives. The implementation of this comprehensive
package of policies enabled the GoSVG to effectively respond to the COVID-19 pandemic, strengthen fiscal resilience, and
increase resilience to climate and disaster-related shocks. Despite COVID-19-related constraints and the considerable
humanitarian and financial challenges imposed by the volcanic eruption, the GoSVG remained committed to the reform
agenda and progress was achieved across most results indicators (Table 1). The Program facilitated rapid mobilization of
urgently needed financing that enabled the GoSVG to efficiently respond to two overlapping crises and protect vulnerable
population groups. It was also successful in bringing about institutional change, ensuring that outcomes are sustained in
the long-term. Key achievements on the fiscal side include the establishment of a fiscal responsibility framework (FRF)
institutionalizing fiscal discipline, strengthening of fiscal buffers, increasing domestic revenue mobilization, and in the
aggregate placing the public debt trajectory on a more sustainable path. The series also enabled the GoSVG to make
significant strides in protecting the country’s natural environment as well as physical assets. Some noteworthy outcomes
include addressing key drivers of coastal and marine degradation and pollution through cessation of coastal sand mining in
most locations and a significant reduction in the use of single-use plastic bags and food containers; and improving the
quality and safety of the built environment through full compliance of all new buildings with climate resilient building design
standards.
Table 1. Summary of Program Achievement
ACHIEVED AND PARTIALLY
OBJECTIVE AND PILLAR ACHIEVED NOT ACHIEVED TOTAL
EXCEEDED ACHIEVED
Responding to COVID-19 to Results Indicator 1
protect the vulnerable Results Indicator 2 3
(Pillar 1) Results Indicator 3
Strengthening Fiscal Results Indicator 6
Results Indicator 5 Results Indicator 4 4
Resilience (Pillar 2) Results Indicator 7
Results Indicator 10
Enhancing Climate and Results Indicator 8 Results Indicator 11
Results Indicator 12 7
Disaster Resilience (Pillar 3) Results Indicator 9 Results Indicator 14
Results Indicator 13
Total 3 4 3 4 14
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Table 2. Programmatic DPC Series Prior Actions and Results
Indicative Triggers (from DPF1) and
Prior Actions for DPF1 Results Indicators (original (DPF1) and revised)
Prior Actions for DPF2
PILLAR 1: Responding to COVID-19 to protect the vulnerable
Result Indicator 1 (New): Number of beneficiaries who received
program support.
Baseline (January 2020): 0
Target (June 2021): 1,400
Actual (June 2021): 2,190
Current status (2023): N/A Program ended in 2021.
Prior Action 1: Approval of a supplementary income
program for displaced hotel and other affected workers Assessment: Achieved and Exceeded
for up to three months and including support to taxi,
water taxi and tour operators affected by the Percentage females:
cancellation of cruise ships. Baseline: 0
Target (June 2021): 45 percent
Actual (June 2021): 57.4 percent
Current (2023): N/A Program ended in 2021.
Assessment: Achieved and Exceeded
Change: This was a new results indicator added to the second
operation.
Result Indicator 2 (New): Number of beneficiaries who received
program support.
Baseline (January 2020): 0
Prior Action 2: Approved a support program for small Target (December 2021): 400
businesses and cultural workers, as well as a direct Actual (December 2021): 5,964
support program for farmers and individuals engaged in Current status (2023): N/A Program ended in 2021.
the fishing sector.
Assessment: Achieved and Exceeded
Change: This was a new results indicator added to the second
operation.
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Result Indicator 3 (New): Number of beneficiaries who received
Prior Action 3: The National Insurance Service has prepayments, TUB benefits, and IAB support.
approved a pre-payment program of pension benefits
to pensioners and a Temporary Unemployment Benefit Baseline (January 2020): 0
(TUB) designed to provide relief to employees who Target (June 2021): 3,500
have directly lost income as a result of the effects of Actual (June 2021): 3,576
the pandemic and the government has approved a Current status (2023): N/A Program ended in 2021.
program of Interim Assistance Benefits (IAB) for
vulnerable citizens who are neither pensioners nor Assessment: Achieved and Exceeded
social welfare beneficiaries. Change: This was a new results indicator added to the second
operation.
PILLAR 2: Strengthening Fiscal Resilience
Result Indicator 4: Public debt convergence to the ECCU target of
60 percent of GDP by 2030.
Prior Action 4: The Recipient, through its Parliament,
Prior Action 1: The Recipient,
has approved a Parliamentary Fiscal Responsibility Baseline (2017): 73.5 percent
through its Cabinet of Ministers,
Resolution that outlines declaratory fiscal responsibility Target (December 2020): 84.4 percent
has required the annual
principles, and sets targets for spending, fiscal balances Actual (December 2020): 84.9 percent
preparation of a medium‐term
and public debt levels. [Trigger 1 in DPF1] Current status (2023): 85.7 percent
fiscal framework (MTFF), and
related timetable for its
Assessment: Partially achieved
preparation, that sets fiscal policy
Change: The baseline was adjusted from 76.4 percent in the first
targets to anchor the fiscal account
operation to 73.5 percent in the second to reflect data revisions. The
on a sustainable path. Change: Minor wording adjustments to the prior
target was adjusted upward from 72 percent to 84.4 percent to
action.
reflect the impact of the COVID-19 pandemic and the decision to
proceed with the port modernization project.
Result Indicator 5: Analysis of government-wide procurement
spending published by MOF.
Prior Action 2: The Recipient,
through the House of Assembly, Prior Action 5: The Recipient will adopt procurement Baseline (2017): No analysis
has approved a revised Public regulations in support of, and as required by, the new Target (2020): Analysis completed and published (Yes)
Procurement Act, which is aligned Public Procurement Act. [Trigger 3 in DPF1] Actual (2020): Yes
with international good practice. Current status (2023): Analysis completed but not published (No).
Assessment: Achieved
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Result Indicator 6: Revenue from taxes on income and profits.
Prior Action 3: The Recipient, Baseline (2017): EC$151 million
Prior Action 6: The Recipient, through its Parliament,
through its Minister of Finance, has Target (2020): EC$150 million
has approved a revised Tax Administration Act aimed at
submitted to the House of Actual (2020): EC$143 million
increasing transparency, consistency, and increasing
Assembly, amendments to the Current status (2023): EC$152.13 million
domestic resource mobilization by facilitating
Income Tax Act aimed at addressing
compliance. [Trigger 4 in DPF1]
transfer pricing issues. Assessment: Not achieved
Change: The target was adjusted downward from EC$165 million to
EC$150 million to reflect the impact of the pandemic on revenues.
Indicative Trigger 5: The Recipient, through its Cabinet
of Ministers, will strengthen SOE oversight by Result Indicator 7: Analysis of the performance of commercial SOEs
Prior Action 4: The Recipient, approving a broader SOE reporting framework, published.
through its Cabinet of Ministers, including the creation of a Monitoring and Oversight
has issued an order mandating Committee and the definition of its composition, Baseline (2017): 0
quarterly and annual financial mandate, roles and responsibilities. Target (2020): 1
reporting standards and Change: This trigger was dropped as it was already Actual (2020): 0
requirements for State Owned completed and deemed unnecessary to include as a Current status (2023): 0
Enterprises (SOEs). prior action in the second operation. As per this trigger,
an SOE oversight committee was established, which Assessment: Not achieved
was meant to meet regularly, and publish its reports.
PILLAR 3: Enhancing Climate and Disaster Resilience
Result Indicator 8: Volume of domestically mined coastal sand
reduced.
Prior Action 5: The Recipient, Baseline (2018): 35,370 m3
through its Cabinet of Ministers, Target (2021): 0 m3
has adopted a partial ban of coastal Actual (2021): 29,734.7 m3
Prior Action 7: The Recipient, through its Cabinet, has
sand mining and has established a Current status (2023): 40,230 m3
adopted a time-based phase out of coastal sand mining
monitoring mechanism for
throughout the national territory. [Trigger 8 in DPF1]
remaining active sites, to gradually Assessment: Partially achieved
implement a sand mining ban and Change: The indicator was revised to note that the original target of
increase coastal resilience. 17,685 m3 (i.e., 50 percent reduction in sand mining) is now a
milestone for 2020, with a final target of zero (i.e., 100 percent
reduction in coastal sand mining) for 2021 based on cessation of
sand mining at all four beaches. The latter being a new target.
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Result Indicator from DPF 1 (dropped): Priority Pollution Watch
Indicative Trigger 10: The Recipient has adopted
Sites (PPWS) regularly monitored, and monitoring results publicly
national regulatory standards for effluent discharges,
disclosed.
including minimum sewage effluent guidelines and a
monitoring program for Priority Pollution Watch Sites
Baseline (2018): No PPWS regularly monitored.
(PPWS).
Target (2020) (From DPF1): 3 PPWS regularly monitored.
Prior Action 6: The Recipient, Change: This trigger was dropped as given capacity Change: This result indicator was dropped given the trigger was
through its Cabinet of Ministers, constraints it was not possible to complete this action. dropped.
has approved the National Oceans Result Indicator 9: Imported single‐use plastic bags reduced.
Policy and Strategic Action Plan, Prior Action 8: The Recipient, through its Minister of
with a view to enhancing benefits Health, Wellness, and the Environment, has phased out Baseline (2017): 453.4 tons
from the marine environment to the importing, distribution and use of single-use plastic Target (2021): 0
sustainable development, and has bags and plastic food service containers to reduce Actual (2021): Not available
created the National Ocean waste generation and marine pollution. [Trigger 9 in Current status (2023): Not available
Coordinating Committee, to DPF1]
strengthen its capacity for ocean Assessment: Partially achieved
governance and coastal and marine Change: The original trigger from DPC1 was intended to
spatial planning. support a complete phase out of the use of plastic bags.
However, the GoSVG’s phase-out plan was in two
Change: Minor edits to the formulation of this results indicator (was
stages: 1. the phasing out of plastic bag imports; and 2.
‘Imported single-use plastic bags reduced by 2/3’ in DPC1). Revision
the phasing out of plastic bag usage. Additionally, the
of target from 151 tons by 2020 to 0 tons by 2021.
GoSVG went beyond the scope of the original trigger
and extended the phase out to plastic food service
containers as well.
Prior Action 7: The Recipient, Result Indicator 10: Increase in number of Saint Vincent and the
through the Board of the SVGCF Grenadines Conservation Fund’s sustainable revenue sources.
has: (a) by amending its by‐laws,
strengthened SVGCF for financing Baseline (2018): 0
and implementing environmental Target (2021): 2
management, ecosystems Actual (2021): 2
conservation and climate resilience Current status (2023): 2
initiatives, including projects
targeting women and girls, and (b) Assessment: Achieved
has signed a Partnership
Agreement with the Caribbean
Change: The target date was revised from 2020 to 2021.
Biodiversity Fund (CBF) to increase
revenue generation for SVGCF.
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Result Indicator 11: Number of aquaculture business plans
prepared.
Prior Action 8: The Recipient, Indicative Trigger 11: The Recipient has adopted a
Baseline (2018): 0
through its Cabinet of Ministers, national aquaculture business plan, with special
Target (2021): 2
has adopted the National Fisheries activities targeting youth and women, to promote a
Actual (2021): 0
and Aquaculture Policy for sustainable seafood industry and reduce overfishing.
Current status (2023): 0
improving management,
sustainable use and development
Assessment: Not achieved
of fisheries and aquaculture
Change: This trigger was dropped, as again, given Change: The original indicator from DPC1 ‘Number of private -public
resources and related ecosystems.
capacity constraints and competing demands, it was partnerships implementing sustainable aquaculture projects’ was
not possible to complete this action. dropped and replaced with a more modest indicator after
considering COVID-19-related constraints.
Result Indicator 12: Level of funds in the contingencies fund.
Baseline (2017): No funds
Milestone (2020): EC$30 million
Prior Action 9: The Recipient, through its Cabinet, has
Target (2022): EC$50 million
approved regulations for the operation of the
Actual (2022): EC$39.301 million (recapitalized amount following
contingencies fund. [Trigger 2 in DPF1]
complete disbursement of funds made for volcanic eruptions )
Current status (2023): EC$46.501 million
Assessment: Achieved
Change: This action was included as a trigger under
Pillar 1 of DPC1. It was moved to Pillar 3 of the second
Change: The target was revised with the original target included as
operation as a prior action since it directly relates to
a milestone for 2020 and a more ambitious target for 2022.
disaster risk financing and complements the Cat DDO. It
has also been revised to refer to approval by Cabinet.
Prior Action 10: The Recipient, through its Minister, has Result Indicator 13: Share of permit applications for new buildings
adopted revised Building Regulations in the Town and approved in compliance with the updated building codes guidelines.
Country Planning Act relating to the enforcement and
application of OECS Building Codes to strengthen Baseline (2018): 0 percent
resilience to natural disasters. [Trigger 6 in DPF1] Target (2022): 100 percent
Actual (2022): 100 percent
Change: This action was included as a trigger in DPC1 Current status (2023): 100 percent
and was slightly reworded.
Assessment: Achieved
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Indicative Trigger 7: The Recipient has complemented
the Town and Country Planning Act with mandatory
provisions on Environmental Impact Assessment,
subdivisions of land, and display of advertisement, to
strengthen land use and development planning with a Change: The target date was revised from 2020 to 2022.
view to increasing climate resilience and coastal
protection.
Change: This indicative trigger was dropped as it was
not possible to complete this action.
Prior Action 11: The Recipient, through its Cabinet, has Result Indicator 14 (New): Number of schools used as emergency
approved the School Safety Policy to enhance physical, shelters that have completed comprehensive disaster management
environmental and social protection levels at education plans and submitted to the Ministry of Education.
facilities.
Baseline (2019): 11.1 percent [5/45]
Change: This action was new and is directly related to Target (2022): 44.40 percent [20/45]
Actual (2022): 10.41 percent [5/48]
the Cat DDO financing instrument. A new indicator has
Current status (2023): 12.96 percent [7/54]
been included to reflect this action.
Assessment: Not achieved
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A. RELEVANCE OF PRIOR ACTIONS
Rating: Satisfactory
18. The relevance of the Prior Actions (PAs) in contributing to the achievement of the PDO(s) is rated Satisfactory
given their strong and direct link to the PDO(s). As the first DPC engagement in SVG comprising multi-sectoral reforms,
the overall reform program was ambitious. The design of the two operations drew on Bank experience in the sub-region,
which highlights the importance of a comprehensive approach to resilience building in small island states due to the multi-
sectoral nature of this agenda. It also responded to the need for a coordinated operation that reduces transaction costs
associated with preparing and supporting multiple parallel reforms, due to capacity constraints. Moreover, the two
operations were structured to build on and complement efforts by the Bank and other development partners including
the Caribbean Regional Technical Assistance Centre, Caribbean Disaster Emergency Management Agency, CBD, etc. to
provide financial and technical assistance to SVG and build the GoSVG’s institutional capacity on PFM, fiscal sustainability,
procurement, disaster risk financing (DRF), and climate change issues. Notable examples of Bank TA include support for
developing the FRF, transfer pricing reforms, the Public Procurement Act, the contingencies fund operating guidelines,
and the national business plan for aquaculture development. The GoSVG was therefore considered to be well positioned
to implement this reform program.
19. Prior Actions under Pillar 1 were selected to ensure that financial relief was directed to the households and
businesses most directly affected by the pandemic, given available resources. Travel restrictions, closure of schools and
non-essential services, and social distancing measures instituted by the GoSVG along with regional and global COVID-19
containment actions had far-reaching social and economic impacts in SVG. Effects on the tourism sector were particularly
acute, with the closure of the Argyle International Airport and the cessation of cruise ship travel affecting a substantive
proportion of the population engaged in this sector. Additionally, allied sectors and activities such as agriculture, fisheries,
arts, crafts, and cultural events were also significantly affected. Together, these affected sectors engage a large portion of
the vulnerable population, including women who experienced a substantial loss in income and earning potential. Prior
Actions under this pillar supported specific measures and programs introduced by the GoSVG to alleviate the economic
and social impacts of the crisis on the low-income and vulnerable individuals and households.
20. The package of reforms supported under Pillar 2 comprised both revenue and expenditure measures that would
help maintain primary budget surpluses while building fiscal buffers. Prior Actions supporting expenditure-related
measures focused on budget planning, creation of fiscal rules, strengthening financial oversight of SOEs, and improving
spending effectiveness and efficiency by overcoming constraints in public procurement. Revenue-related measures
supported under this pillar aimed to improve domestic resource mobilization by addressing transfer pricing issues,
enhancing transparency, and improving tax administration. Taken together, these Prior Actions supported a coherent and
coordinated set of reforms to strengthen SVG’s fiscal resilience. The fiscal measures permitted the creation of fiscal space
to resource the establishment of a contingencies fund, while generating fiscal savings and safeguarding critical
expenditures.
21. Reforms supported by Prior Actions under Pillar 3 were selected to facilitate the sustainable use of SVG’s natural
assets and strengthen their resilience and improve the country’s emergency preparedness to contribute to the
overarching goal of enhancing climate and disaster resilience. The Prior Actions supporting reforms on management of
natural assets aimed to address issues related to coastal sand mining, help SVG leverage its coastal and marine assets for
economic benefit while protecting critical ecosystems, increase financial resources for environmental conservation
initiatives, and facilitate sustainable development of fisheries and aquaculture. The Prior Actions related to enhancing
disaster risk preparedness sought to strengthen the resilience of SVG’s physical environment to natural disasters by
focusing on buildings, land use planning, and the use of education facilities during emergencies. Additionally, this pillar
assisted the GoSVG in enhancing DRF by supporting the operationalization of its contingencies fund and through the
availability of Cat-DDO resources, both of which are ex-ante DRF instruments that can be utilized during emergencies.
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Table 3. Contributions to the PDO
PILLAR 1: Responding to COVID-19 to protect the vulnerable7
Prior Actions Contribution to PDO
[DPC2] Prior Action 1: Approval of a
supplementary income program for displaced
This prior action alleviated the impact of unemployment and loss in earnings on
hotel and other affected workers for up to
individuals directly engaged in the tourism industry due to travel restrictions
three months and including support to taxi,
instituted during the COVID-19 crisis.
water taxi and tour operators affected by the
cancellation of cruise ships.
[DPC2] Prior Action 2: Approved a support
This prior action limited income loss and closure of small businesses during the
program for small businesses and cultural
pandemic and enabled individuals and households whose livelihoods were
workers, as well as a direct support program
threatened by the impact of the pandemic on SVG’s tourism sector to maintain
for farmers and individuals engaged in the
their consumption levels.
fishing sector.
[DPC2] Prior Action 3: The National Insurance
Service has approved a pre-payment program
of pension benefits to pensioners and a
Temporary Unemployment Benefit (TUB)
designed to provide relief to employees who This prior action reduced the financial distress of individuals and households
have directly lost income as a result of the directly affected by the COVID-19 crisis, including individuals who were not on
effects of the pandemic and the government public assistance or receiving a pension and therefore more vulnerable.
has approved a program of Interim Assistance
Benefits (IAB) for vulnerable citizens who are
neither pensioners nor social welfare
beneficiaries.
PILLAR 2: Strengthening Fiscal Resilience
[DPC1] Prior Action 1: The Recipient, through
its Cabinet of Ministers, has required the
annual preparation of a medium‐term fiscal
framework (MTFF), and related timetable for
These prior actions contributed to the establishment of fiscal and expenditure
its preparation, that sets fiscal policy targets to
targets and introduced fiscal discipline in budget planning processes. Having clear
anchor the fiscal account on a sustainable
fiscal parameters and limits to situating the budget envelope have ensured that
path.
SVG’s budget allocations are consistent with its overall fiscal objectives, including
[DPC2] Prior Action 4: The Recipient, through
reducing the debt to GDP ratio, which is key for fiscal sustainability in the long-
its Parliament, has approved a Parliamentary
term.
Fiscal Responsibility Resolution that outlines
declaratory fiscal responsibility principles, and
sets targets for spending, fiscal balances, and
public debt levels.
[DPC1] Prior Action 2: The Recipient, through Public procurement in SVG was governed by outdated regulations, which needed
the House of Assembly, has approved a revised to be overhauled. These prior actions contributed to the modernization of SVG’s
Public Procurement Act, which is aligned with public procurement system in line with international best practices. The new
international good practice. public procurement regulatory framework also incorporated environmental and
7The impact on poverty of these measures could not be evaluated as household survey data is not available. The latest available household survey
data dates back to 2018.
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gender considerations. The resulting improvements in procurement processes
[DPC2] Prior Action 5: The Recipient will adopt along with enhanced transparency and accountability in public spending have
procurement regulations in support of, and as facilitated more competition and better value for money. This has led to public
required by, the new Public Procurement Act. resources being used more efficiently, which will generate fiscal savings over the
medium term, while allowing for more sustainable infrastructure.
[DPC1] Prior Action 3: The Recipient, through
its Minister of Finance, has submitted to the Adjustments to SVG’s tax system on a tax-by-tax basis over time had created gaps
House of Assembly, amendments to the and inconsistencies, as well as incoherence across various tax measures affecting
Income Tax Act aimed at addressing transfer revenue collection. These prior actions helped overcome these issues by
pricing issues. expanding the tax net and increasing revenue collection. They also augmented
[DPC2] Prior Action 6: The Recipient, through the ability of SVG’s Inland Revenue Department to better administer all tax laws
its Parliament, has approved a revised Tax ensuring efficient collection of taxes and fees and increased tax compliance.
Administration Act aimed at increasing These improvements have enhanced tax revenue management and enabled
transparency, consistency, and increasing mobilization of additional revenue, which is in turn helping reduce the debt to
domestic resource mobilization by facilitating GDP ratio to strengthen fiscal sustainability.
compliance.
[DPC1] Prior Action 4: The Recipient, through
its Cabinet of Ministers, has issued an order
mandating quarterly and annual financial
reporting standards and requirements for
SVG’s SOEs debt is guaranteed by the GoSVG and reflected in the national debt
State Owned Enterprises (SOEs).
review. This prior action and policy trigger strengthened the GoSVG’s oversight
[DPC 2] Indicative Trigger 5: The Recipient,
of commercial SOEs and enhanced their financial accountability. Improved
through its Cabinet of Ministers, will
monitoring of the financial health of SOEs is helping GoSVG track fiscal risks
strengthen SOE oversight by approving a
arising from accumulation of arrears and debt, forgone tax revenue, etc. and
broader SOE reporting framework, including
reduce spending inefficiencies.
the creation of a Monitoring and Oversight
Committee and the definition of its
composition, mandate, roles, and
responsibilities.
PILLAR 3: Enhancing Climate and Disaster Resilience
[DPC1] Prior Action 5: The Recipient, through Uncontrolled mining of sand from SVG’s beaches for use as an aggregate in
its Cabinet of Ministers, has adopted a partial concrete used for construction in most of the country’s public works and private
ban of coastal sand mining and has established buildings had been eroding beaches and sand dunes, which are crucial for
a monitoring mechanism for remaining active protecting the islands against storms as well as a key draw for tourism. Moreover,
sites, to gradually implement a sand mining erosion of beaches had endangered coastal housing and infrastructure, extended
ban and increase coastal resilience. salt spray into significant acreages of productive land and led to habitat loss for
certain flora and fauna. These prior actions contributed to the cessation of coastal
[DPC2] Prior Action 7: The Recipient, through sand mining in SVG and facilitated acquisition of sand for use in construction from
its Cabinet, has adopted a time-based phase inland areas and through imports, helping curb further beach erosion. This is
out of coastal sand mining throughout the aiding beach replenishment and restoration of sand dunes, which will augment
national territory. the country’s natural defenses against hurricanes and storm surges and
strengthen the resilience of its coastal areas.
[DPC1] Prior Action 6: The Recipient, through
In addition to impacts of climate change such as drought and ocean warming,
its Cabinet of Ministers, has approved the
SVG’s forest and marine ecosystems were threatened by community
National Oceans Policy and Strategic Action
modification, inadequate coastal development controls, unsustainable fishing
Plan (NOPSAP), with a view to enhancing
practices, and land and ship-based pollution. These prior actions strengthened
benefits from the marine environment to
the surveillance and oversight of SVG’s marine and coastal zones and facilitated
sustainable development, and has created the
the protection of its natural environment. They were crucial in reducing plastic
National Ocean Coordinating Committee, to
litter, which improved ecosystem health and enhanced the resilience of
strengthen its capacity for ocean governance
environmentally sensitive areas.
and coastal and marine spatial planning.
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[DPC2] Prior Action 8: The Recipient, through
its Minister of Health, Wellness and the
Environment, has phased out the importing,
distribution and use of single-use plastic bags
and plastic food service containers to reduce
waste generation and marine pollution.
[DPC1] Prior Action 7: The Recipient, through
the Board of the Saint Vincent and the SVGCF was created by the GoSVG in 2015 with a core mandate of conserving and
Grenadines Conservation Fund (SVGCF), has: managing biodiversity within SVG’s protected and environmentally sensitive
(a) by amending its by‐laws, strengthened areas.8 However, limited institutional capacity and a lack of budgetary allocations
SVGCF for financing and implementing from the GoSVG and other revenue sources hindered SVGCF from carrying out its
environmental management, ecosystems mandate. This prior action strengthened SVGCF’s ability to tap into different
conservation and climate resilience initiatives, revenue sources and undertake environmental conservation initiatives. This has
including projects targeting women and girls, enabled SVGCF to advance efforts such as coastal habitat restoration that are
and (b) has signed a Partnership Agreement crucial for SVG’s environment and people to adapt to the impacts of climate
with the Caribbean Biodiversity Fund (CBF) to change.
increase revenue generation for SVGCF.
Overfishing had led to a sharp decline in SVG’s fish stocks by 2016. Impacts of
climate change such as higher ocean temperatures, increasing acidification, and
[DPC1] Prior Action 8: The Recipient, through changes in the ocean currents further exacerbated this issue by preventing full
its Cabinet of Ministers, has adopted the recovery of depleted stocks. This prior action contributed to the diversification
National Fisheries and Aquaculture Policy for and sustainability of SVG’s fisheries sector by advancing sustainable fisheries
improving management, sustainable use and practices and aquaculture initiatives. These measures are enabling SVG to adapt
development of fisheries and aquaculture to the decline in fish stocks, strengthen food security and prevent
resources and related ecosystems. overexploitation of its marine environment. Over time, this will improve the
adaptive capacity of fisheries‐dependent populations to cope with climate
change impacts.
A multi-layered approach to disaster risk financing that combines instruments
such as risk insurance, contingencies fund, and contingent credit is critical for the
financial resilience of small island states like SVG. This prior action
[DPC2] Prior Action 9: The Recipient, through
operationalized SVG’s contingencies fund, which constitutes the bottom layer of
its Cabinet, has approved regulations for the
its disaster risk layering strategy. The resulting effective, efficient, and
operation of the contingencies fund.
transparent management of the fund’s resources has enabled the GoSVG to
launch a timely response to emergencies by rapidly mobilizing funds to support
affected entities and prevent adverse coping actions.
Damages from climate-related and geophysical disasters to SVG’s physical
[DPC2] Prior Action 10: The Recipient, through
infrastructure were imposing high reconstruction and rehabilitation costs on
its Minister, has adopted revised Building
both, the GoSVG, and private entities. This prior action strengthened the design
Regulations in the Town and Country Planning
standards for new buildings in SVG, thereby improving their ability to withstand
Act relating to the enforcement and
the impact of disasters, particularly hurricanes and earthquakes. By complying
application of OECS Building Codes to
with these standards, all new buildings will be resilient to natural disasters, which
strengthen resilience to natural disasters
will reduce the likelihood of damage.
8 SVG has designated protected status to a total of 34 areas, of which 7 are marine habitats.
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About one fifth of SVG’s educational facilities are used as shelters during natural
disasters, underscoring the need for ensuring their structural soundness and
having comprehensive disaster management plans in place. This prior action
[DPC2] Prior Action 11: The Recipient, through
contributed to the standardization and mainstreaming of climate and disaster risk
its Cabinet, has approved the School Safety
management planning in SVG’s educational institutions . The resulting
Policy to enhance physical, environmental and
improvements to construction and maintenance standards for school buildings
social protection levels at education facilities.
and the introduction of safety procedures have strengthened SVG’s emergency
preparedness by ensuring that these facilities and their inhabitants are protected
during disasters.
B. ACHIEVEMENT OF OBJECTIVES (EFFICACY)
Rating: Satisfactory
22. Overall, this DPC series’ efficacy is rated as Satisfactory as the objectives of protecting the vulnerable during
COVID-19, strengthening fiscal resilience and climate and disaster resilience are considered to be achieved with some
shortcomings. Of the 14 results indicators (RIs), 3 exceeded their targets, 4 were fully achieved, and 3 were partially
achieved. The relevance and appropriateness of most results indicators and targets are deemed adequate and well
designed for capturing the series’ objectives. Nonetheless, some indicators could have been differently formulated to
effectively track progress. Achievement towards targets was impressive given their ambition, the effects of the COVID-19
pandemic which shut down large segments of the economy, and the scale of devastation from the 2021 volcanic eruptions.
As a small island state, limited capacity was a key constraint in SVG, and associated limitations affected the achievement
of some results indicators. Furthermore, at the broad macroeconomic level, the two successive external shocks caused a
significant collapse in GDP, reductions in fiscal revenues, and an increased demand for services and fiscal transfers to the
population, deteriorating SVG’s fiscal and debt metrics. The triggering of the Cat DDO after the volcanic eruptions and the
supplemental financing provided enabled the GoSVG to support its citizens and businesses as they grappled with the
aftermath of two successive crises. The Cat DDO provided immediate financial assistance to address urgent response
needs, while the supplementary financing supported humanitarian activities and recovery efforts.
23. The objective of Pillar 1 “Responding to COVID-19 to protect the vulnerable” is considered fully achieved. All
three RIs focused directly on responding to the pandemic and achieving this stated objective were achieved, including the
additional sub-indicator under RI 1. While all three indicators exceeded their targets, RI 2 exceeded expectations by a wide
margin reflecting the magnitude of the threat posed by COVID-19 to livelihoods in SVG and the need for support. The
targeted measures and programs implemented by the GoSVG to alleviate the pandemic’s impact on groups with limited
coping capacities that were most affected by the crisis reached a significantly higher number of individuals and households
than anticipated. This was due to far-reaching impacts on the livelihoods of people engaged in relevant activities (e.g.,
sailors, farmers) that were not foreseen when the programs were instituted. In sum, the total number of beneficiaries
accessing all programs supported under this operational series vastly exceeded expectations.
24. The objective of Pillar 2 “Strengthening Fiscal Resilience” is also considered achieved after factoring in the
impact of the COVID-19 crisis on the GoSVG’s fiscal position. In terms of the identified results indicators, one was fully
achieved (RI 5), one was partially achieved (RI 4), and two were not achieved (RIs 6 and 7). Despite these shortcomings,
with the passage of the FRF, a new procurement code and associated regulations, and a revised Tax Administration Act,
along with strengthened SOE monitoring and oversight, significant and sustained progress has been made toward this
objective through this series. RI 4 is considered partially achieved as performance on the public debt target was off by 0.5
percentage points of the GDP. Given the extenuating circumstances, this is a notable outcome. RI 6 (Revenue from taxes
on income and profits) was not achieved despite the revised target since the decline in the GoSVG’s revenue during the
COVID-19 pandemic was larger than anticipated. Finally, RI 7 (Analysis of the performance of commercial SOEs published)
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was not achieved due to the GoSVG needing to focus its institutional resources on emergent pandemic and volcano-
related needs.
25. The objective of Pillar 3 “Enhancing Climate and Disaster Resilience” is considered fully achieved. Of the seven
identified results indicators, three were achieved (RIs 10, 12, and 13); two were partially achieved (RIs 8 and 9); and two
were not achieved (RIs 11 and 14). Despite shortcomings on some targeted results, the considerable progress made by
the GoSVG in implementing the underlying reforms ensured that the overarching objective of this pillar was met. For the
results indicators that were partially achieved, the shortcomings were relatively minor. While the coastal sand mining
target (RI8) of complete elimination of sand mining was not met, mining of sand has completely ceased at 3 of the 4
beaches where it was occurring, which is a very significant outcome. It is important to note that at Dripp beach, which is
located at the mouth of the Rabacca River and the only beach where sand mining continues, the sand being mined
primarily consists of river sediment deposits that have increased substantially since the volcanic eruptions. The GoSVG
has identified measures to address the gaps associated with RI 9 (Reduction in imported single-use plastic bags) for which
data availability was the key issue. The overlapping impacts of the COVID-19 pandemic and the volcano eruption were the
main reasons behind the lack of progress on two results indicators that were not achieved (RI11 Aquaculture business
plans prepared and RI13 Number of schools used as emergency shelters with DRM plans). In both these instances, the
relevant government agencies had to shift their priorities to respond to these crises, which delayed the achievement of
targeted results. However, they remain committed to the respective policy goals and are making concerted efforts to
achieve intended results. Indeed, the GoSVG expects to make substantial progress towards RI13 by the end of 2023.
Finally, the results of the three indicators that were met (RI 10 Increase in SVGCF’s funding sources, RI 12 Level of funds
in the contingencies fund and RI 13 Building code compliance) have been sustained past the target date, with some
agencies seeking to build on the outcomes achieved to set more ambitious goals.
Relevance, Measurability of RIs, and Appropriateness of Targets
RI 1: Number of beneficiaries who received program support and percentage females, where “program” refers to the
supplementary income program for displaced hotel and other affected workers. [Baseline (2020): 0.0; Target (2021):
1,400 (45 percent female); Actual (2021): 2,190 (57.4 percent female); Current (2023): N/A]. Achieved and Exceeded.
26. Being a new program instituted in response to the COVID-19 pandemic, the baseline was zero. The program had
2,190 beneficiaries (of which 57.4 percent were female) and a total value of EC$8.005 million at its end-date of June 2021.
Therefore, this result indicator is considered fully achieved. Displaced hotel workers made up over 87 percent of program
beneficiaries, highlighting the disproportionate effects of COVID-19-related tourism closures on this group. Over half the
displaced hotels workers who benefitted from the program being women, points to the importance of this program in
supporting one of the most vulnerable groups during the crisis. The use of this indicator is considered appropriate as it
was fully measurable and provided direct insight on the uptake of the program and its usage and acceptance among the
population.
RI 2: Number of beneficiaries who received program support, where “program” refers to the program approved for small
businesses and cultural workers, as well as a direct support program for farmers and individuals engaged in the fishing
sector. [Baseline (2020): 0.0; Target (2021): 400; Actual (2021): 5,964; Current (2023): N/A]. Achieved and Exceeded.
27. Again, being a new program, the baseline was zero. The program exceeded its target by a substantially wide
margin with 5,964 beneficiaries and a total value of EC$6.337 million at its end-date of December 2021. As a result, this
result indicator is considered fully achieved. The program beneficiaries comprised small businesses, cultural and allied
workers, and farmers. Fisherfolk did not draw on this program. The significant overachievement on this results indicator
is due to the large number of farmers (5000) who accessed the program, most of whom were not registered with the
GoSVG when the program was established, leading to lower estimates for anticipated number of beneficiaries. This use
of this indicator is also considered appropriate.
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RI 3: Number of beneficiaries who received prepayments, TUB benefits, and IAB support. [Baseline (2020): 0.0; Target
(2021): 3,500; Actual (2021): 3,576; Current (2023): N/A]. Achieved and Exceeded.
28. The actual number of beneficiaries by the program end date of June 2021 was 3,576 for a cumulative value of
EC$7.52 million. Therefore, this results indicator is considered fully achieved. It is notable that sailors who were
unemployed due to the cessation in cruises during the pandemic and were not contributing to the GoSVG’s pension
programs were the primary beneficiaries of IAB program.
RI 4: Public debt convergence to the ECCU target of 60 percent of GDP by 2030. [Baseline (2017): 73.50; Target (2020):
84.4; Actual (2020): 84.9; Current (2023): 85.7]. Partially achieved.
29. Despite the very negative impact of the pandemic on the GoSVG’s fiscal position this target was almost achieved,
with public debt being 84.9 percent at end-2020 and this indicator is considered partially achieved. This results indicator
was chosen with the assumption that the GoSVG’s adherence to the fiscal rules and targets set out in the FRF would reduce
the debt to GDP ratio. However, the pandemic and subsequently the volcanic eruption had significant implications on the
GoSVG’s fiscal space and adherence to the FRF was suspended temporarily. It is worth noting that the adoption of fiscal
rules under the FRF enabled the GoSVG to create fiscal buffers required for launching an effective response to these
shocks. The advisability of this indicator could therefore be questioned given the difficulty of attribution and the significant
potential impact of exogenous factors beyond the GoSVG’s control on its outcome.
RI5: Analysis of government-wide procurement spending published by MOF. [Baseline (2017): No; Target (2020): Yes;
Actual (2020): Yes; Current (2023): No]. Achieved.
30. The Ministry of Finance (MOF) has been publishing information on contracts awarded by the GoSVG annually since
2017, with data on contracts awarded up to end-2023 available on their website. MOF has also been publishing an analysis
of the GoSVG’s procurement spending since 2017, with the last analysis published in 2021. MOF indicated that such an
analysis was undertaken in 2022 and 2023 but was not published and has committed to publishing the results of these
analyses. Since MOF has been consistently analyzing and publishing information on the GoSVG’s procurement spending,
the target is considered achieved.
RI6: Revenue from taxes on income and profits. [Baseline (2017): EC$151 million; Target (2020): EC$150 million; Actual
(2020): EC$143 million; Current (2023): EC$152.13 million]. Not achieved.
31. This target was lowered based on the re-evaluation of this indicator following the onset of the COVID- 19 pandemic
and its anticipated impact on domestic revenue mobilization. In the end, the pandemic was much more severe and
prolonged than expected and revenues fell more than previously estimated. Nonetheless, given the depth of the pandemic
and the serious impact it had on the economy, performance in revenue collection remained relatively robust given the
GoSVG’s efforts and the target was marginally missed. Income and profit tax receipts in 2020 totaled EC$143 million and
hence the target is considered not achieved. As in the case of RI 4, the advisability of this indicator could be questioned
given the significant potential impact of exogenous factors on its outcome. However, while exogenous factors can clearly
influence tax receipts, this indicator is directly related to the prior action of revising the Tax Administration Act and changes
in tax receipts can be attributed, at least in part, to the action supported under the series. The performance on this
indicator highlights the importance of strengthening tax administration in countries with high vulnerability to shocks that
could cause revenue disruptions and demonstrates how the measure supports the goal of strengthening fiscal resilience.
RI7: Analysis of the performance of commercial SOEs published. [Baseline (2017): No; Target (2020): Yes; Actual (2021):
No; Current (2023): No]. Not achieved.
32. Since SOE debt is guaranteed by the GoSVG and included in the public debt review, MOF sought to strengthen the
oversight of the financial health of SOEs by instituting financial reporting requirements and creating the Monitoring and
Oversight committee for SOEs. Currently, SOEs submit audited annual financial statements to MOF, which has a
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representative on the board of each of the SOEs. However, MOF has not undertaken an analysis of the performance of
commercial SOEs, and the Monitoring and Oversight committee is not functional. As a result, this target is considered not
achieved. The debt acquired by SVG’s SOEs remains well below the EC$300 million cap established in the Loan Guarantee
Act. Thus, the risk associated with SOEs was deemed to be low resulting in this effort being deprioritized in light of the
GoSVG’s need to focus on other emergent priorities in the aftermath of the two crises.
RI8: Volume of domestically mined coastal sand reduced. [Baseline (2018): 35,370 m3; Target (2021): 0.0; Actual (2021):
29,734.7 m3; Current (2023) 40,230 m3:]. Partially achieved.
33. SVG’s Roads, Building and General Services Authority (BRAGSA) was mining sand at four beaches – Diamond,
Brighton, Richmond, and Dripp for use as an aggregate in concrete needed for the construction of public works and private
buildings, leading to considerable erosion at all four sites. Initially the GoSVG adopted a partial ban on coastal sand mining
that ceased sand mining at two beaches (DPC1). It subsequently sought to eliminate coastal sand mining from all four sites
by 2021 through the adoption of a time-based phase out plan under DPC2, with sand needed for construction being
acquired from inland sources such as the Rabacca River or through imports thereafter. The target was revised accordingly
to reflect that no coastal sand would be mined in 2021. Sand mining has completely ceased at three of the four sites -
Diamond, Brighton, and Richmond beaches since the adoption of the phase-out plan, but continues at Dripp beach.9 As
stated above, this is primarily sediment deposited by the river, which has surged since the volcano eruption and not beach
sand. While 29,734.7 m3 of sand was mined at Dripp in 2021, this RI is considered partially achieved since by eliminating
sand mining at three of the four beaches, the GoSVG has made considerable progress on the underlying objective of
curbing beach erosion in SVG. In this respect, and within the broader context of this reform, tracking the reduction in the
volume of coastal sand being mined was not a suitable results indicator, since the link between volume of sand mined and
beach erosion can’t be clearly established at locations such as Dripp beach, where there is consistent new sand
accumulation due to the river sediment deposits. Instead, tracking the number of coastal sand mining sites that were
closed would have been a better indicator, given that stopping the erosion of SVG’s beaches due to mining operations was
the main driver for this measure.
34. BRAGSA has a full-scale sand mining operation at the inland Rabacca site that uses sediment brought down by the
river. While the volume of sediment being deposited has increased substantially following the volcanic eruption, BRAGSA
is unable to process it to a fine grade in the quantities required for certain types of construction due to limited equipment.
As a result, it has continued sand mining at Dripp, which has finer sand to meet this shortfall.10 BRAGSA has recently
acquired new sand sifters and sand crushing equipment to increase the sediment processing capacity at the in-land
Rabacca site. This equipment will be set up in the coming months and is estimated to be operational by mid-October 2025.
BRAGSA expects to meet all domestic sand needs through the Rabacca operation once this new equipment is fully
functional and cease sand mining at Dripp beach. It even anticipates having a sand surplus that can be exported.
RI9: Imported single‐use plastic bags reduced. [Baseline (2017): 453.4 metric tons; Target (2021): 0; Actual (2021): Not
available; Current (2023): Not available]. Partially achieved.
35. The GoSVG was unable to provide data on the number of single-use plastic bags imported during the target year
and in 2023 since all single-use plastic imports are classified under the same category and the importation data cannot be
disaggregated by type of single-use plastic. Discussions with MOF and the Central Water and Sewerage Authority (CWSA)
indicated that the import and use of food containers has completely stopped since the ban came into effect in January
2021, but plastic bags are still being imported in small quantities and one plastic bag manufacturer continues producing
them domestically. Despite this, single-use plastic bags are not widely used in SVG with most businesses providing goods
9 This was confirmed by the ICR team by visiting Diamond beach.
10 Discussions with SVG’s Physical Planning Unit revealed that the use of imported sand for construction once the ban on coastal sand mining was
instituted increased construction costs. This increase ranged between 10 to 15 percent when coupled with shortages of other material such as
lumber during the COVID-19 pandemic.
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in paper bags and several customers using reusable cloth bags. As a result, the quantity of plastic bags and food containers
discarded in water bodies and environmentally sensitive areas has decreased significantly. Based on this information, this
RI is considered partially achieved. Given their direct link to the associated reform and its objective of phasing out plastic
bags and food containers, this RI and its target were seemingly appropriate. However, the GoSVG’s ability to track and
report the data required should have been ascertained before choosing this indicator.
36. The GoSVG aims to strengthen the Customs department’s due diligence on plastic imports to prevent the
importation of single-use plastic bags. It is also planning to undertake consultations with the domestic plastic bag
manufacturer on discontinuing their production. More broadly, the GoSVG has made substantial progress in reducing
land-based and marine pollution through sustained efforts to monitor waste disposal and improve waste management.
The Conservation and Sustainable Development Unit within the Ministry of Health, the CSWA, the National Parks, Rivers
and Beaches Authority, and the Fisheries Division within the Ministry of Agriculture and Fisheries monitor the disposal of
waste and hazardous material on beaches, environmentally sensitive areas, and in water bodies.
RI10: Increase in number of Saint Vincent and the Grenadines Conservation Fund’s sustainable revenue sources.
[Baseline (2018): 0; Target (2021): 2; Actual (2021): 2; Current (2023): 2]. Achieved.
37. By 2021, SVGCF had two sources of revenue – the Caribbean Biodiversity Fund (CBF) and the Inter-American
Foundation (IAF) and this RI has been fully achieved. It has received EC$672,624 from CBF and EC$359,980 from IAF. By
end-2022, SVGCF had financed 11 projects that supported beach and coral reef restoration, farmland soil regeneration,
assessment of the marine and coastal environment following the volcanic eruption, etc. 11 Since enhancing SVGCF’s
financial sustainability was one of the key intended outcomes of measures linked to this RI, the focus on funding is
warranted. Nevertheless, the number of funding sources isn’t a sound indicator of SVGCF’s financial capacity, which was
one of the key constraints this reform aimed to address. Instead, tracking the funding available or the number of initiatives
supported by SVGCF might have been more suitable indicators.
RI11: Number of aquaculture business plans prepared. [Baseline (2018): 0; Target (2021): 2; Actual (2021): 0; Current
(2023): 0]. Not achieved.
38. The original RI on private‐public partnerships in sustainable aquaculture projects was dropped and replaced with
a more realistic indicator on aquaculture business plans prepared. The baseline and target for this RI were accordingly set
as no business plans in 2018 and 2 business plans by 2021 respectively. Despite this change, this target was not achieved.
The impact of the pandemic and the subsequent volcanic eruption on SVG’s fisheries sector affected the GoSVG’s efforts
to develop aquaculture. During COVID-19, the reduction in tourist arrivals reduced the demand for fish from hotels and
restaurants in SVG, while the volcanic eruption affected fishing grounds to the northeast and northwest of Saint Vincent
leading to severe revenue losses. Concurrently, following the lead of other countries in the region, local sea moss
producers started exporting sea moss. To capitalize on this alternate source of income while tourism remained subdued,
more individuals started producing sea moss and existing producers increased their production capacity. To support these
efforts, the Fisheries division shifted its focus from aquaculture more broadly to sea moss production. The GoSVG, in
collaboration with the Nature Conservancy (TNC), has demarcated areas where sea moss production can take place with
limited impact to the environment. It is also working with TNC to develop standards for sea moss plots and a licensing
system. In parallel, the Fisheries division is undertaking consultations with sea moss producers to understand the
investment needs for developing value chains. There are now four sea moss production sites in SVG on the Grenadine
islands with a total of 20 producers, some of whom have formed a cooperative. While this was not a planned outcome
under this series, it emphasizes how the GoSVG appropriately adjusted its priorities on aquaculture to respond to the
challenges posed to the sector by the pandemic and the volcanic eruption.
11 https://svgcf.org/brochure/
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39. Beyond sea moss, the GoSVG is working on repopulating SVG’s depleted conch population by establishing a conch
nursery at Union Island financed by the CDB and exploring lobster farming. In addition, it has revised the regulations to
strengthen the enabling environment for aquaculture development, through an update to the Fisheries and Aquaculture
Policy, which is waiting to be finalized and endorsed at cabinet level. All these efforts are being supported by a World Bank
project on enhancing the blue economy in the Caribbean (P171833). As such, even though the GoSVG was unable to
achieve the scaled-down target for this RI, it has made consistent efforts to develop commercial-scale aquaculture in SVG
during this time despite facing hurdles and remains deeply committed to this agenda.
RI12: Level of funds in the contingencies fund. [Baseline (2017): 0.0; Target (2022): EC$50 million; Actual (2022):
EC$39.3 million; Current (2023): EC$46.5 million]. Achieved.
40. Contingencies funds are often under resourced due to a lack of dedicated funding sources. SVG sought to
overcome this issue by instituting a contingencies fund that is directly resourced through revenue earned from VAT rate
increases and a Climate Resilience Levy collected from hotel stays. The fund was expected to accumulate EC$10 million
dollars annually, or about 0.5 percent of GDP per annum because of these measures. Initially the baseline and target for
this RI were accordingly set as no funds in 2017 and EC$30 million by 2020. However, the fund had deposits amounting to
EC$30.5 million by January 2020, and as a result the target was revised to EC$50 million by 2022 in DPC2. Despite the
overall funding level of EC$39.3 million reported for 2022 being below this target, this RI is considered achieved since the
amount reported is the recapitalized amount following almost complete depletion of funds in 2021 (EC$27 million).12 The
fund has been steadily accumulating resources since then, with each year’s allocation exceeding that of the preceding
year. In early 2024, the fund stood at EC$61.1 million.13 Broadly, tracking the effectiveness of the contingencies fund’s
administration by focusing on its funding levels was an appropriate choice. While the target chosen for this RI was intended
to track sustained flow of resources into the fund, in hindsight it could have been selected to factor in the possibility of
funds being disbursed for emergency events occurring during this timeframe (e.g., cumulative funding accumulated since
the fund’s establishment). Alternatively, the RI could have been formulated to track the fund’s receipts and expenditures.
RI13: Share of permit applications for new buildings approved in compliance with the updated building codes
guidelines. [Baseline (2018): 0.0; Target (2022): 100 percent; Actual (2022): 100 percent; Current (2023): 100 percent].
Achieved.
41. At the time of approval of the second operation, the GoSVG was making efforts to build up its capacity to enforce
building codes. In acknowledgement of these constraints, this RI had a relatively narrow focus on the permit applications
for new buildings. In 2021, the Physical Planning Unit (PPU) undertook a Building Regulations Capacity Assessment with
support from the Bank and identified key actions needed to strengthen its capacity to ensure adherence to building codes.
At this time, the GoSVG was on track to meet this RI with 100 percent of permit applications for new buildings approved
in compliance with the updated building codes guidelines. This result has been sustained with 100 percent compliance
reported for both, the target year 2022 and 2023. Therefore, this RI is considered fully achieved. The PPU has been
undertaking systematic inspections to ensure that new buildings comply with the building codes once a permit is granted.
PPU inspectors carry out inspections at six different stages of construction and provide an inspection certificate that
describes the elements covered by the inspection. To facilitate enforcement, each inspector is assigned a specific area,
which they visit periodically to monitor construction activity, including unauthorized construction and carry out
inspections. It is important to note that the PPU only oversees construction by private entities (e.g., houses, commercial
structures, hotels, etc.) and the construction of public structures is administered by the GoSVG’s engineers.
42. The PPU has observed an improvement in the quality of new buildings constructed in recent years that has
enhanced their ability to withstand natural hazards. It has recently developed new regulations that include structural
12 Resources from the fund were first disbursed in 2020 for COVID-19-related expenditures (EC$10 million) and subsequently in 2021 to provide
critical supplies and services to persons affected by the volcano.
13 https://finance.gov.vc/finance/images/PDF/budgetaddress/SVG_Budget2024_updated.pdf
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considerations for Category 5 hurricanes and a requirement for developments along the coast to undertake an EIA and a
public consultation. These are awaiting finalization and approval. It is also working on updating its datasets on climate
hazards, particularly geospatial data for flood and landslide risks to guide decisions on locating development.
RI14: Number of schools used as emergency shelters that have completed comprehensive disaster management plans
and submitted to the Ministry of Education. [Baseline (2019): 11.1 percent (5/45); Target (2022): 44.4 percent (20/45);
Actual (2022): 10.41 percent (5/48); Current (2023): 12.96 percent (7/54)]. Not achieved.
43. The School Safety Policy identified ‘Standardization and updating of school safety and DRM plans’ as one of its
three core priorities. Given the critical role of these schools in SVG’s emergency preparedness, an increase in the number
of such schools adopting these plans was deemed to be a key measure of this policy’s successful implementation and was
the basis for selecting this RI. In 2019, only 11 percent (5 out of 45) schools serving as emergency shelters had developed
and submitted DRM plans to the Ministry of Education (MOE), which was used as the baseline. The 2022 target of 44.4
percent (20 out of 45) was not achieved, with no new schools submitting DRM plans. By end-2023, 54 schools were being
used as emergency shelters of which 7 (13 percent) had submitted DRM plans to MOE. The modest progress on this RI is
a result of a combination of factors. Virtual learning instituted by SVG’s schools during the pandemic continued following
the volcanic eruption due to many schools being utilized as shelters. During this period, school administrators were
primarily focused on the dual priorities of virtual learning and caring for persons in the shelters. MOE developed model
plans and reference guides that could be tailored and adopted by schools, conducted workshops to train school personnel
on developing plans and engaged with individual schools, yet follow through by schools on developing DRM plans was
limited. To address this issue, MOE initiated a safe school recognition program with support from development partners.
Under this program, 16 schools, of which 14 are emergency shelters were identified as pilots and are receiving support on
undertaking a comprehensive safety assessment and developing a safety plan. Of these, two schools have submitted plans
to MOE with the rest aiming to submit plans in the coming months. As such, by end of this year, 21 out of 54 (39 percent)
schools serving as emergency shelters are expected to have developed and submitted DRM plans to MOE. Looking back,
this RI was not the best choice, since the development of DRM plans is at the discretion of schools and school
administrators have numerous demands on their time as well as conflicting priorities. Additionally, the target was quite
ambitious and should have considered the capacity and resource constraints faced by both, MOE and school
administrators.
C. OVERALL OUTCOME RATING AND JUSTIFICATION
Rating: Satisfactory
44. With a Satisfactory rating for relevance of the prior actions and a Satisfactory rating for efficacy, the overall
outcome rating is Satisfactory. All the prior actions had a strong and direct link in achieving the PDOs. Transitioning to the
second operation, the series expanded its focus from fiscal and climate resilience to including a COVID-19 pandemic
response and associated prior actions were added accordingly. Modest changes were also made to some of the triggers,
subsequent prior actions, and results indicators to reflect evolving circumstances and ensure continued relevance of the
supported program and actions.
III. OTHER OUTCOMES AND IMPACTS
A. POVERTY, GENDER AND SOCIAL IMPACTS
45. This DPC has had positive poverty-related impacts. The short-term impact on poverty reduction can be attributed
to the measures supported through PAs 1, 2, and 3 in the second operation to limit the impact of the COVID-19 pandemic
on the poor and vulnerable population groups by protecting their livelihoods and preserving jobs. The support provided
through this operation to households and businesses affected by pandemic-related closures offered liquidity and
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continuity of businesses and livelihoods, limited exposure to COVID-19 and helped maintain consumption levels among
the most vulnerable. These measures could also have a positive long-term effect by improving human capital, productivity,
and stimulating economic growth.
46. Women have shared the benefits provided by these programs.14 The livelihood and jobs continuity facilitated by
the supported measures benefited women to a greater extent given that job losses during the COVID-19 crisis were
concentrated in the tourism and retail sectors where women constitute a major portion of employed individuals. To
ensure such measures effectively promote gender-balanced outcomes going forward, it will be necessary to collect and
analyze gender-disaggregated data and implement gender-sensitive budgeting in the near term, efforts on which are
ongoing, including through Bank TA.
47. Implementation of strengthened building regulations and the School Safety Policy has likely resulted in positive
indirect social impacts. Compliance with the updated building regulations has improved the quality of new buildings
constructed in SVG. Their enhanced resilience to natural disasters will reduce the socioeconomic costs arising from
damage and destruction. Structural strengthening of existing and new educational facilities, some of which double up as
emergency shelters, and the development of DRM plans are offering safe learning environments for students and secure
locations for affected populations to seek refuge during natural disasters, providing protection against antisocial behaviors
that might occur during such events.
B. ENVIRONMENTAL, FORESTS, AND NATURAL RESOURCE ASPECTS
48. With many measures specifically designed to strengthen environmental management and climate resilience
(PAs 5, 6, 7, and 8 in the first operation and PAs 7 and 8 in the second operation), the program has positively contributed
to protecting and strengthening SVG’s land-based and marine ecosystems. The phase out of sand mining on Brighton,
Diamond, and Richmond beaches is enabling their gradual replenishment, which will eventually restore their ability to act
as natural defenses against storms. The ban on single-use plastic bags and food containers has significantly reduced the
accumulation of plastic litter on beaches, in water bodies and environmentally sensitive areas, improving the health of
their flora and fauna. Environmental sustainability has been at the core of the GoSVG’s efforts to promote aquaculture,
which is expected to improve fish stocks in the long-term. With a strengthened mandate, the SVGCF has financed
numerous projects that have focused on protecting SVG’s biodiversity. Most fiscal and PFM measures supported were
deemed to be environmentally neutral and were not expected to have significant negative impacts. However, measures
such as the new public procurement legislation and related regulations on the incorporation of environmental
sustainability considerations have likely had a positive impact. Furthermore, by limiting the downside economic impact of
the COVID-19 crisis on households and businesses, PAs 1, 2, and 3 in the second operation are likely to have reduced
pressures on the natural environment. The financial relief provided by these programs enabled beneficiaries to maintain
income and consumption levels, and largely averted the need to resort to potentially damaging environmental practices.
Lastly, the resources provided through the contingencies fund (PA 12 in DPC2), the Cat DDO and the supplemental
financing operation in the wake of the volcanic eruptions were highly instrumental in enabling the GoSVG to launch a
timely and appropriate response which ensured that the impacts on forests, natural resources, and the environment
throughout the main island of Saint Vincent were limited and appropriately addressed. These resources were used to
undertake ash clean up and debris removal and provide inputs for agricultural production to partially recover losses. They
also facilitated the restoration of critical environmental services such as water storage and safety, and waste management
following the eruption.
C. INSTITUTIONAL CHANGE/STRENGTHENING
49. The DPC series contributed to improvements in public sector governance and monitoring and management of
natural resources by supporting modernization of outdated practices and strengthening of key areas. Procurement
14 Due to data availability limitations this was quantified only for the supplementary income program for displaced workers.
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reform will ensure greater value for money and increased transparency in procurement processes. Other measures that
targeted transparency, such as the FRF and strengthened SOE oversight and monitoring will improve public sector
accountability. The tax administration reforms that were supported have strengthened tax administration and improved
the relationship between taxpayers and the GoSVG. Lastly, reforms related to protecting SVG’s natural assets from
overexploitation and reducing marine pollution have improved the oversight of coastal areas which will improve the
management of the country’s natural assets.
50. The Cat DDO strengthened the institutional framework for managing climate and disaster risks and augmented
the GoSVG’s capacity to manage associated contingent liabilities. The measures supported have mainstreamed climate
and disaster resilience in the permitting processes for new buildings constructed as well as in the design and management
of educational facilities. Furthermore, the contingencies fund has provided a fiscal buffer to the GoSVG in the event of
emergencies to facilitate a rapid financial response.
D. OTHER UNINTENDED OUTCOMES AND IMPACTS
51. No significant unintended outcomes were identified.
IV. BANK PERFORMANCE
Rating: Satisfactory
52. The Bank provided effective, timely and appropriate support to the GoSVG in the design/preparation and
implementation of this programmatic series. The Bank worked closely with the GoSVG in defining the policy matrix and
played a key role in helping the program meet its objectives through necessary adjustments to factor in the constraints
posed by the pandemic. TA provided throughout the design and implementation of the series was crucial for pivoting the
development agenda towards a climate resilient recovery.
Preparation
53. The inclusion of a Cat-DDO component in the second operation displayed a pragmatic approach to the client’s
evolving needs. Since this series was the first DPF operation in SVG, the GoSVG had limited experience in working with
the Bank on this lending instrument-type. To respond to the GoSVG’s request to build on the progress achieved under the
first operation, while recognizing the limited capacity and additional demands of managing the COVID-19 pandemic,
incorporating the Cat-DDO into the existing DPC operation was deemed to be preferable to reduce the bureaucratic and
administrative steps associated with designing and implementing two separate operations. As noted previously, the design
of the original PDO provided this flexibility, and some of the triggers identified in the first operation were adopted as Cat
DDO prior actions. The process of merging the two operations proceeded relatively smoothly, reflecting positively on the
team’s understanding of the GoSVG’s priorities and readiness to explore different possibilities.
54. The series was designed using sound analytical underpinnings, based on World Bank analysis and that of other
development partners. For example, insights on the effective application of fiscal rules frameworks in the context of small
states, particularly Caribbean countries from the report Fiscal Rules and Economic Size in Latin America and the Caribbean
(World Bank, 2020) informed the TA provided for the FRF, its fiscal targets, and design. Similarly, the design of actions
around the creation of the contingencies fund and its operating guidelines was based on best-practice literature in this
area, comprising analysis and publications undertaken by the Bank and others, including the IMF and academia.
Procurement reform similarly built on a long history of best practice in the area. In terms of the COVID-19 response
measures, numerous Bank publications and guidelines supported effective COVID-19 response programming. The
environmental protection and blue growth reforms drew extensively on the Bank’s Caribbean-focused analytics on climate
and disaster resilience, blue economy development and marine pollution. Finally, the Cat-DDO actions benefitted from
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the Bank’s extensive expertise in the climate and DRM space. For instance, the design of the school safety reform was
informed by the Roadmap for Safer Schools developed by the Global Facility for Disaster Reduction and Recovery.
55. There was a continuous dialogue and collaboration between the Bank and relevant government agencies
throughout the design of this series. The design phase included numerous discussions between the Bank team and
relevant authorities to facilitate the identification of supported reforms that were deemed critical to strengthening fiscal,
climate, and disaster resilience. This also included an assessment of what could be accomplished within the timeframe of
the series and of areas where significant TA would need to be provided to support the implementation of measures.
Completing this reform program would have been difficult without sustained Bank engagement and Bank-provided TA.
Despite the limited budget available for the provision of TA, the Bank was instrumental in ensuring that the GoSVG
received requisite assistance for implementing relevant measures. For example, TA was provided to for developing SOE
financial and performance reporting guidelines and templates. As such, the cooperation between the Bank and the
authorities was exemplary.
Implementation
56. COVID-19 related travel restrictions affected the ability to conduct Implementation Status and Results (ISR)
missions and only one ISR was undertaken. Similarly, these restrictions constrained the ability to deliver related TA,
particularly that planned through study tours. While the team used virtual means to engage with relevant agencies on
areas where results were lagging or not being achieved and provided additional guidance, these had limitations and
proved less effective compared to in-person engagement.
V. RISK TO SUSTAINABILITY OF DEVELOPMENT OUTCOMES
57. The first objective of responding to COVID-19 to protect the vulnerable is subject to little sustainability risk at
this point. With the pandemic winding down, the risk that a COVID-19 resurgence will jeopardize achievements to date is
minimal. Furthermore, SVG now has systems in place to effectively handle such a resurgence, both in terms of addressing
the public health-related implications of a pandemic and programs that can support livelihoods and business continuity
during emergencies. As such, the response from the GoSVG on both accounts would be expected to be prompt and
effective.
58. The second objective of strengthening fiscal resilience is subject to moderate risk. Despite ongoing COVID-19-
related challenges and demands, the GoSVG managed the aftermath of the volcanic eruption in an exemplary fashion.
The response was rapid, the loss of lives minimal, the impact on the economy, while not insubstantial, was capably
contained and managed, and the recovery and reconstruction efforts were swift and effective. The fiscal buffers supported
under this series were used as intended and the fact that the contingencies fund has already been largely replenished is a
testament to the GoSVG’s recognition of its usefulness and the necessity for such buffers. Nonetheless, SVG’s exposure to
natural disasters is high and there is always residual risk that cannot be fully eliminated or planned for ex-ante.
Furthermore, the ambitious public investment pipeline over the short to medium term leaves limited fiscal space for a
response to a natural disaster event and elevated levels of public debt could pose further constraints. Lastly, risks related
to global geo-political developments, both upside and downside, can be significant. Russia’s invasion of Ukraine and the
situation in the Middle East have made economic management more challenging by impacting investor confidence, import
prices, and causing rising global economic uncertainty. Fortunately, the GoSVG’s PFM and fiscal buffers have been
substantially improved through the support provided by the series and are unlikely to be undone in the presence of the
above risks. In sum, the significant progress made in these areas considerably reduce the risks to the sustainability of this
objective compared to the situation prior to this series' implementation.
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59. In terms of the third objective of enhancing climate and disaster resilience, some risk remains . The main risks
are exogenous and outside of the Bank’s and SVG´s control. Natural disasters remain a prominent risk, and their impacts,
particularly extreme weather events, are expected to intensify with climate change. Despite improvements in disaster risk
preparedness and management, including through actions supported under this series, risk from such events will persist
given SVG’s high degree of exposure to hazards such as hurricanes. Similarly, the uncertainties associated with the
materialization of climate-related risks also pose a threat. For instance, while SVG previously suffered considerable
damages due to heavy rainfall, the country is currently experiencing drought conditions due to below normal rainfall in
the first quarter of 2024. The second key challenge is related to limited institutional and human resource capacity. As a
small island state, SVG has been relying on the decision-making and technical abilities of a small cadre of government staff
for implementing and sustaining the reforms supported by this series. Maintaining the progress made on this third
objective requires consistent monitoring and enforcement of regulations that in turn requires considerable human and
financial resources. With existing staff stretched thin, there is some risk of certain outcomes under this objective being
reversed without requisite capacity enhancements.
60. Overall, risks to the sustainability of the DPC´s outcomes are considered medium to low as full implementation
continues, and reforms are consolidated and become increasingly irreversible.
VI. LESSONS AND NEXT PHASE
A. LESSONS LEARNED
61. A key lesson that is unique to this operation relates to incorporating the Cat DDO as a component within a
broader DPF operation. While the decision to integrate the two operations was largely driven by the need to reduce the
administrative burden on the GoSVG and to streamline the Bank’s internal processes due to the capacity constraints
imposed by the COVID-19 crisis, the design of the first operation allowed for the inclusion of the Cat DDO without
significant changes to the overall program. A dedicated pillar focusing on adaptation and resilience provided flexibility for
introducing Cat DDO-related elements in the second operation with relative ease through minor modifications to existing
triggers and the inclusion of new prior actions. This underscores the need to ensure that flexibility is built into the design
of DPF operations undertaken in small island states to enable the Bank to appropriately adapt the reform program when
unforeseen crises and shocks occur.
62. The consolidation of the operations led to two important benefits compared to proceeding with two
independent operations. First, combining the two credits into a single operation allowed for greater integration across
the policy priorities these operations were seeking to advance. It ensured that the Bank considered, designed, and
negotiated the prior actions as a single, coherent package with the connections and synergies between various potential
actions fully developed through extensive discussions, both with the GoSVG and internally. Second, combining the two
operations also facilitated effective coordination of efforts within the GoSVG, with the MoF leading the discussions and
ensuring the appropriate participation of relevant line ministries, rather than the Bank having to work with these ministries
through separate operations led by them.
63. Another important insight gained from this series is the need to comprehensively consider institutional capacity
issues in small island states across all elements and stages of such operations. The high vulnerability of small economies
such as SVG to external shocks often leaves their governments saddled with demands arising from unanticipated disasters,
limiting institutional capacity that can be dedicated to advancing development priorities. As a result, pursuing policy
reforms in such contexts requires concerted efforts to overcome this challenge. TA provided to the GoSVG across several
PAs over the life of this programmatic series was critical to the achievement of its outcomes given capacity constraints,
especially those pertaining to human resources and the broad scope of responsibility inherent in small administrations.
That said, being the first DPF series undertaken in SVG, the level of ambition of the overall program was quite high and
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some actions could have been better calibrated to the level of available capacity. As such, undertaking an extensive
assessment of institutional capacity during DPF preparation and providing support for addressing key capacity and
governance gaps coupled with consistent results monitoring throughout implementation is critical for ensuring
sustainability of development outcomes in small island states.
64. Finally, there are some key lessons to be learned in choosing appropriate results indicators. First, the indicators
chosen should be attributable to supported actions and not subject to undue influence by exogenous factors. Second, in
contexts with limited institutional capacity, the selection of indicators should be based on a realistic assessment of the
implementing entities’ ability to achieve the targeted results within the specified timeframe. Additionally, results
indicators that capture the progress made on the implementation of the reform, rather than its end goal may be better
suited in instances where the implementing entities have severe capacity constraints. Third, it’s important to determine
if governments can report on the chosen results indicators by confirming if the agencies responsible for tracking the
relevant data are indeed doing so.
B. NEXT PHASE
65. The World Bank is committed to working with SVG to anchor the reforms supported by this series. It has
supported the GoSVG in strengthening the resilience of the country’s health systems and enhancing its response
capabilities to health-related emergencies (P176559). A project funded by the Global Environment Facility (P172980) is
supporting the operationalization of the NOPSAP and financing pilots for participatory planning and nature-based
solutions in four coastal and marine areas. A regional project focused on strengthening the enabling environment for the
blue economy and resilience of coastal assets in OECS countries (P171833) is assisting the GoSVG in strengthening the
enabling environment for climate-resilient and sustainable growth in the tourism, fisheries and aquaculture sectors, and
also financing priority infrastructure in these sectors. A new Cat-DDO operation will build on the reforms advanced under
this DPC series and further strengthen SVG’s disaster preparedness and resilience. A Country Climate and Development
Report for the Eastern Caribbean is under preparation. Expected to be completed next year, this report will provide
insights on how the long-term impacts of climate change could impact SVG’s development priorities and identify areas for
action in adaptation and resilience to achieve its development goals.
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ANNEX 1. RESULTS FRAMEWORK
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A. RESULTS FRAMEWORK
Indicators by Pillars
1. Responding to COVID-19 to protect the vulnerable
Baseline Closing Period (Current) Actual Achieved at Completion
Indicator Name
Value Month/Year Value Date Value Month/Year
0.00 Jan/2020 Not applicable Dec/2023 2,190.00 Jun/2021
RI1: Beneficiaries who received Comments on achieving targets This results indicator is considered fully achieved. Displaced hotel workers
program support. (Number) made up over 87 percent of program beneficiaries, highlighting the
disproportionate effects of COVID-19-related tourism closures on this group.
0.00 Not applicable 57.40
RI1: Female beneficiaries of Comments on achieving targets This results indicator is considered achieved. Over half the displaced hotel
program support. workers who benefitted from the program being women points to the
(Percentage) importance of this program in supporting one of the most vulnerable groups
during the crisis.
0.00 Jan/2020 Not applicable Dec/2023 5,964.00 Dec/2021
Comments on achieving targets This results indicator is considered achieved. The significant overachievement
RI2: Beneficiaries who received on this results indicator is due to the large number of farmers (5000) who
program support. (Number) accessed the program, most of whom were not registered with the GoSVG
when the program was established, leading to lower estimates for anticipated
number of beneficiaries.
0.00 Jan/2020 Not applicable Dec/2023 3,576.00 Jun/2021
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Comments on achieving targets This results indicator is considered fully achieved. It is notable that sailors who
RI3: Beneficiaries who received pre-
were unemployed due to the cessation in cruises during the pandemic and
payments, TUB benefits, and IAB
were not contributing to the GoSVG’s pension programs were the primary
support. (Number)
beneficiaries of IAB program.
2. Strengthening fiscal resilience
Baseline Closing Period (Current) Actual Achieved at Completion
Indicator Name
Value Month/Year Value Date Value Month/Year
RI4: Public debt convergence to the 73.50 Dec/2017 85.70 Dec/2023 84.90 Dec/2020
ECCU target of 60 percent of GDP by Comments on achieving targets This results indicator is considered partially achieved.
2030. (Percentage)
RI5: Analysis of government-wide No Dec/2017 No Dec/2023 Yes Dec/2020
procurement spending published by Comments on achieving targets This results indicator is considered fully achieved.
MOF. (Yes/No)
RI6: Revenue from taxes on income EC$151 million Dec/2017 EC$152.13 million Dec/2023 EC$143 million Dec/2020
and profits. (Amount(USD)) Comments on achieving targets This results indicator is considered not achieved.
RI7: Analysis of the performance of 0 Dec/2017 0 Dec/2023 0 Dec/2020
commercial SOEs published. Comments on achieving targets This results indicator is considered not achieved.
(Number)
3. Enhancing climate and disaster resilience
Baseline Closing Period (Current) Actual Achieved at Completion
Indicator Name
Value Month/Year Value Date Value Month/Year
35,370.0 Dec/2018 40,230 Dec/2023 29,734.7 Dec/2021
RI8: Volume of domestically mined Comments on achieving targets This results indicator is considered partially achieved. Sand mining has
coastal sand reduced. (Cubic completely ceased at three of the four sites - Diamond, Brighton, and
Meter(m3)) Richmond beaches since the adoption of the phase-out plan, but continues at
Dripp, which is at the mouth of the Rabacca River.
453.40 Dec/2017 Not available Dec/2023 Not available Dec/2021
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Comments on achieving targets This results indicator is considered partially achieved. The GoSVG was unable
to provide data on the number of single-use plastic bags imported during the
RI9: Imported single‐use plastic bags
target year and in 2023 since all single-use plastic imports are classified under
reduced. (Metric ton)
the same category and the importation data cannot be disaggregated by type
of single-use plastic.
RI10: Increase in number of Saint 0 Dec/2018 2 Dec/2023 2 Dec/2021
Vincent and the Grenadines Comments on achieving targets This results indicator is considered fully achieved. By 2021, SVGCF had two
Conservation Fund’s sustainable sources of revenue – the Caribbean Biodiversity Fund (CBF) and the Inter-
revenue sources. (Number) American Foundation (IAF).
0 Dec/2018 0 Dec/2023 0 Dec/2021
RI11: Number of aquaculture business Comments on achieving targets This results indicator is considered not achieved. The impact of the pandemic
plans prepared. (Number) and the subsequent volcanic eruption on SVG’s fisheries sector affected the
GoSVG’s efforts to develop aquaculture.
0.00 Dec/2017 EC$46.5 million Dec/2023 EC$39.3 million Dec/2022
RI12: Level of funds in the
Comments on achieving targets This results indicator is considered achieved since the amount reported is the
contingencies fund. (Amount(USD))
recapitalized amount following almost complete depletion of funds in 2021.
RI13: Share of permit applications for 0.00 Dec/2018 100.00 Dec/2023 100.00 Dec/2022
new buildings approved in compliance Comments on achieving targets This results indicator is considered fully achieved.
with the updated building codes
guidelines. (Percentage)
RI14: Schools used as emergency 11.10 Dec/2019 12.96 Dec/2023 10.41 Dec/2022
shelters that have completed Comments on achieving targets This results indicator is considered not achieved.
comprehensive disaster management
plans and submitted to the Ministry of
Education. (Percentage)
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ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION
A. TASK TEAM MEMBERS
Operation ID Name Role
David MacWilliam Team Leader
Keren Carla Charles Team Leader
Arun Manuja Financial Management Specialist
Moad M. Alrubaidi Financial Management Specialist
Manjola Malo Procurement Specialist
P169956 Vinicius Lima Moura Procurement Specialist
Felix Alberto Quintero Vollmer Counsel
Miriam Beatriz Villarroel Team Member
Jose C. Janeiro Team Member
Mary Elinor Boyer Team Member
Katherine Anne O'Gara Team Member
David MacWilliam Team Leader
Ana Luisa Gomes Lima Team Leader
Tatiana Cristina O. de Abreu Souza Financial Management Specialist
John Oliver Moss Procurement Specialist
Jacqueline Beatriz Veloz Lockward Counsel
Patricia Holt Team Member
P165220 Miriam Beatriz Villarroel Team Member
Anna Benjamin Team Member
Ruxandra Burdescu Team Member
Julian Lee Team Member
David I Team Member
Keren Carla Charles Team Member
Giselle Velasquez Team Member
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B. STAFF TIME & COST
Operation ID : P165220
Staff Time & Cost
Stage of Project Cycle
No. of Staff Weeks US$ (including travel and consultant costs)
Preparation
FY18 19.118 0.19
FY19 0.800 0.00
Total 0.00 0.19
Supervision/ICR
FY19 9.575 0.09
FY20 7.880 0.05
Total 0.00 0.15
Operation ID : P169956
Staff Time & Cost
Stage of Project Cycle
No. of Staff Weeks US$ (including travel and consultant costs)
Preparation
FY20 19.963 0.15
Total 0.00 0.15
Supervision/ICR
FY21 12.435 0.06
FY22 5.779 0.02
FY24 8.000 0.06
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Total 0.00 0.15
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ANNEX 3. BORROWER, CO-FINANCIERS, AND OTHER DEVELOPMENT PARTNERS’/STAKEHOLDERS’ COMMENTS
Comments from Ministry of Finance, Saint Vincent and the Grenadines
In general, the report was in keeping with the discussion points and information provided during the recent World Bank
mission.
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ANNEX 4. SECTORS AND THEMES
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SECTORS AND THEMES
Operation ID : P165220
Sectors
Adaptation
Mitigation
Major Sector Sector % Co-benefits
Co-benefits (%)
(%)
Agriculture, Fishing and
Fisheries 12 50 0
Forestry
Energy and Extractives Mining 13 100 0
Central Government (Central
38 0 0
Public Administration Agencies)
Other Public Administration 13 0 0
Water, Sanitation and Other Water Supply, Sanitation and
24 50 25
Waste Management Waste Management
Themes
Major Theme Theme (Level 2) Theme (Level 3) %
Macroeconomic &
Economic Policy Economic Growth and Planning Structural Policy 13
Modelling
Adaptation 31
Environment and Climate change
Natural Resource Mitigation 6
Management Renewable Natural Resources Asset
Oceans 50
Management
Human Development
Gender 25
and Gender
State-owned Enterprise
Public Administration Reform and 13
Privatization
Public Sector
Domestic Revenue
Management 13
Administration
Public Finance Management
Public Expenditure
13
Management
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Urban and Rural
Disaster Risk Management Disaster Risk Reduction 13
Development
Operation ID : P169956
Sectors
Adaptation
Mitigation
Major Sector Sector % Co-benefits
Co-benefits (%)
(%)
Agriculture, Fishing and
Fisheries 5 0 0
Forestry
Education Other Education 5 100 0
Energy and Extractives Mining 9 50 0
Industry, Trade and
Tourism 9 0 0
Services
Central Government (Central
27 0 0
Public Administration Agencies)
Other Public Administration 18 56 6
Social Protection Social Protection 18 25 0
Water, Sanitation and Other Water Supply, Sanitation and
9 10 0
Waste Management Waste Management
Themes
Major Theme Theme (Level 2) Theme (Level 3) %
Economic Policy Fiscal Policy Fiscal sustainability 9
Adaptation 25
Climate change
Mitigation 1
Environmental Health and Pollution
Environment and Water Pollution 9
Management
Natural Resource Coastal Zone
Management 18
Management
Renewable Natural Resources Asset Fisheries Policies and
Management 9
institutions
Oceans 9
Finance Finance for Development Disaster Risk Finance 9
Human Development Disease Control Pandemic Response 100
and Gender Education Education Facilities 9
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Domestic Revenue
9
Public Sector Administration
Public Finance Management
Management Public Expenditure
18
Management
Fragility, Conflict and Violence Forced Displacement 9
Social Development and Social Insurance and
9
Protection Social Protection Pensions
Social Safety Nets 27
Disaster Response and
9
Disaster Risk Management Recovery
Urban and Rural
Disaster Risk Reduction 18
Development
Land Administration and
Rural Development 9
Management
ANNEX 5. SUPPORTING DOCUMENTS
Saint Vincent and the Grenadines - First Fiscal Reform and Resilience Development Policy Credit Project (English).
Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/586591558118654567/St-Vincent-
and-the-Grenadines-First-Fiscal-Reform-and-Resilience-Development-Policy-Credit-Project
Saint Vincent and the Grenadines - Second Fiscal Reform and Resilience Development Policy Credit with a with a
Catastrophe Deferred Drawdown Option (English). Washington, D.C. : World Bank Group.
http://documents.worldbank.org/curated/en/378901591635788767/St-Vincent-and-the-Grenadines-Second-Fiscal-
Reform-and-Resilience-Development-Policy-Credit-with-a-with-a-Catastrophe-Deferred-Drawdown-Option
Saint Vincent and the Grenadines - Supplemental Financing to the Second Fiscal Reform and Resilience Development
Policy Credit (English). Washington, D.C. : World Bank Group.
http://documents.worldbank.org/curated/en/742011624932126044/St-Vincent-and-the-Grenadines-Supplemental-
Financing-to-the-Second-Fiscal-Reform-and-Resilience-Development-Policy-Credit
O'Gara,Katherine Anne. Disclosable Version of the ISR - Second Fiscal Reform and Resilience Development Policy Credit
with a Cat DDO - P169956 - Sequence No : 01 (English). Washington, D.C. : World Bank Group.
http://documents.worldbank.org/curated/en/768111623133453597/Disclosable-Version-of-the-ISR-Second-Fiscal-
Reform-and-Resilience-Development-Policy-Credit-with-a-Cat-DDO-P169956-Sequence-No-01
OECS Countries - Regional partnership strategy for the Organization of Eastern Caribbean States (OECS) for the period
FY15-19.
https://documents1.worldbank.org/curated/en/681431468146985821/pdf/851560CPS0R201000Box385343B00OUO090.
pdf
OECS Countries – Performance and Learning Review of the Regional Partnership Strategy for the Organization of Eastern
Caribbean States (OECS) for the period FY15-19.
https://documents1.worldbank.org/curated/en/924951563459760467/pdf/Organization-of-Eastern-Caribbean-States-
Performance-and-learning-review-of-the-regional-country-partnership-strategy-for-the-period-FY15-FY19.pdf
Saint Vincent and the Grenadines. National Economic & Social Development Plan 2013 – 2025.
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https://finance.gov.vc/finance/index.php/economic-planning-industry-and-social-development/national-economic-a-
social-development-plan
Key Economic Indicators, 2015–25 (at time of appraisal)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Proj.
(annual percentage growth)
Real sector
Real GDP (market prices) 0.8 0.8 1.0 2.2 0.4 -5.5 4.1 3.0 2.9 2.7 2.7
Consumer price index (avg.) -1.7 -0.2 2.2 2.3 0.9 0.9 1.6 2.0 2.0 2.0 2.0
Monetary
Broad money (M2) 4.8 3.0 1.2 1.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
Credit to private sector 2.4 1.3 1.1 0.1 -0.2 0.5 0.7 0.8 1.0 1.2 1.6
Fiscal
Revenue 27.9 29.8 30.0 29.1 29.9 28.7 31.3 32.7 30.3 30.3 30.3
Expenditure 30.0 28.7 30.5 30.0 32.3 35.0 35.8 37.2 34.4 32.0 30.7
Overall balance -2.1 1.1 -0.4 -0.9 -2.4 -6.2 -4.5 -4.5 -4.1 -1.7 -0.4
Primary balance 0.1 3.2 1.9 1.5 0.1 -3.7 -1.9 -1.8 -1.1 1.1 2.1
Public debt 79.4 82.8 73.5 75.6 75.2 85.8 85.4 85.4 84.7 82.1 78.4
External debt 46.4 56.4 46.9 45.7 53.0 63.0 66.4 68.7 70.4 69.8 66.1
External
Current account balance -14.5 -15.2 -11.6 -12.0 -10.0 -17.5 -12.1 -12.7 -10.8 -9.6 -8.3
Exports (goods and services) 37.4 37.9 37.0 38.2 40.1 26.7 35.5 40.6 43.0 43.1 44.6
Imports (goods, services) 54.5 55.7 53.3 55.1 53.5 46.7 50.1 55.1 54.7 54.3 55.3
Foreign direct investment 6.6 21.1 4.2 7.2 3.8 4.6 5.4 10.0 9.4 8.0 4.2
Terms of trade (2002=100) 121 120 119 116 117 124 121 118 117 115 115
Exchange rate (EC$/US$) 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7
Memorandum items
Nominal GDP (EC$ million) 2040 2081 2139 2191 2226 2131 2255 2370 2487 2607 2731
Sources: ECCB, IMF, and World Bank staff estimates.
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