In many parts of the Caribbean, households now have access to piped water and basic sanitation, and utilities have made substantial investments in infrastructure. Yet for many communities, reliable and responsive service remains out of reach. Intermittent supply, low water pressure, and concerns around water quality—particularly in areas that support the tourism industry—are fueling growing dissatisfaction.
This challenge isn’t unique to the Caribbean. Around the world, utilities which once focused heavily on infrastructure development are now struggling to meet rising expectations. With systems in place, customers increasingly expect services that are consistent, high-quality, and responsive—delivered not just occasionally, but on demand.
Historically, water utilities have prioritized infrastructure expansion—constructing treatment plants, laying pipelines, and developing new water sources—to meet rising demand. These investments were necessary. However, a singular focus on capital development often came at the expense of system maintenance, operational efficiency, and customer service.
Today, expectations have evolved. Citizens no longer seek access to water alone—they demand reliable, safe, and responsive services. This shift calls for a transformation in how utilities are managed, emphasizing performance, user satisfaction, and accountability.
This is where the World Bank’s increased global focus on results-based financing, such as the Program-for-Results (PforR) lending instrument, offers a critical shift in approach. Unlike traditional financing, PforR links disbursements directly to the achievement of verified results. If targets aren’t met, funds are not released. The model emphasizes outcomes—such as reductions in non-revenue water, improved service continuity, increased billing, collection and customer satisfaction metrics—rather than inputs.
Crucially, PforRs are not just about financing; they also deliver targeted technical support. The World Bank works closely with utilities to build capacity, strengthen governance, and develop performance-based systems that enable sustainable, customer-centered service delivery. In addition, PforR operations rely on the country’s own systems for implementation—including procurement, financial management, and environmental and social safeguards—reinforcing national institutions and promoting long-term sustainability.
The World Bank is expanding its engagement across the Caribbean, translating analytical work and policy dialogue into practical on-the-ground solutions. A key initiative under development is the Caribbean Water Security and Sector Efficiency Regional Program, which will initially focus on three countries, with the potential to expand further. The program builds on the region’s growing interest in results-based financing (e.g., PforRs) to help drive measurable improvements. It aims to address persistent challenges: reducing water losses, improving energy and operational efficiency, modernizing utilities, accelerating wastewater management and building long-term climate resilience —all while enhancing cross-countries synergies, knowledge sharing and capacity building. This regional program will also rally multiple development partners together to increase its outreach and impact.
Moreover, regional efforts are laying the groundwork for broader reforms. A Source-to-Sea Pollution Management initiative, funded by the World Bank’s PROBLUE Trust Fund for ocean health and coastal resilience, is supporting countries in identifying and rolling out sustainable wastewater and sanitation solutions and in tackling coastal pollution. Further, the World Bank Group is providing targeted technical assistance to help utilities address critical operational and financial challenges and gradually build the creditworthiness needed to access greater financing and meet their investment and efficiency needs.
Most recently, in March 2025, a Water Utility Creditworthiness Workshop in Jamaica brought together leaders from eight countries and several development partners to exchange knowledge on financial sustainability, strengthening governance, and promoting inclusive leadership within utilities.These efforts reflect growing momentum across the region. The Caribbean is moving beyond business as usual—taking bold steps to modernize how programs are designed, delivered, and how results are incentivized.
While challenges remain, the commitment of countries and partners is clear: to build more resilient, efficient, and customer-focused water and wastewater services that can withstand the pressures of climate change and ensure long-term water security.
