The Government of Dominica continues on its drive to build the capacity and track record of financing structures that increase access to and direct benefits from the Green Climate Fund for households, small and medium businesses, and low-income populations in Dominica, through the Enhancing Direct Access project (EDA).
One of the areas for which the project will provide climate change financing is through contractual agreement with a service provider to establish and operationalize a revolving loan facility with highly concessional small loans to homes and small businesses.
At a meeting of Cabinet held on Tuesday, February 23, Cabinet granted approval for the Government Housing Loans Board to serve as a Service Provider for a grant of US $2 million (EC $5.4 million) for implementation of a Revolving Loan Fund under the Enhanced Direct Access (EDA) Project, funded by the Green Climate Fund (GCF) under the following terms:
- a) The loans shall be provided at a rate of 2% per annum
- b) Loans shall be non-collateralized (unsecured) loans for persons working within the public sector who qualify for funding through the Housing Loans Board
- c) No single loan shall exceed $200,000.00 XCD or 5% of the entire portfolio of the revolving fund program.
- d) Eligible activities for financing under the fund will include the following:
- Water management (storage, irrigation, septic systems, water-efficient appliances)
- Climate Smart Buildings (Roof insulation, Green Roofs, Safe Rooms/Bunker)
- Flooding control
- Erosion Control
- Structural adjustments that increase climate change resilience (roof reinforcement, hurricane shutters)
- Health and Vector Control (mosquito screens, indoor ventilation)
- Renewable energy systems (solar heating and cooling systems, solar energy systems, skylights, energy-efficient appliances).
This Loan facility is yet another initiative of the Government to facilitate Dominican families to build their own resilient homes as a means of empowering our people and is expected to commence in the first quarter of 2021.