Caribbean infrastructure challenge is bankability not capital

T he Caribbean is not short of infrastructure needs, project ideas, or available capital. What continues to hold back investment is the ability to turn those ideas into well-prepared, bankable projects that can withstand economic shocks, political transitions, and decades-long investment horizons. That was one of the central messages emerging from the Caribbean Infrastructure Forum (CARIF) session, “The Mechanics of Bankable Projects: How To Best Use the Tools Available”, where regional banking, development finance and advisory leaders examined what it will take to attract private capital to Caribbean infrastructure at greater scale. Kemar Polius, senior director, head of corporate banking and sustainable finance at CIBC Caribbean, said bankability ultimately comes down to confidence.

“Capital follows confidence: confidence in sponsors, confidence in cash flows, confidence in regulatory frameworks, and confidence in contracting,” Polius said. CIBC Caribbean operates across ten markets in the Caribbean and, according to Polius, has led or arranged more than $1. 5 billion in infrastructure transactions over the past decade, supporting ports, airports, hospitals and other critical strategic infrastructure assets. Drawing on that experience, he said projects frequently encounter difficulty well before they reach a bank for financing. “Where we see projects stall or fail is long before they come to us for financing for a term sheet. It’s really on the project preparation side,” he said, pointing to incomplete feasibility work, outstanding regulatory permits, and gaps in regulatory frameworks among the issues that can undermine investor confidence. “We’re not short of ideas, and we’re certainly not short of capital, as evidenced by the attendance here today at CARIF. But it’s…