The Ministry of the Interior and Kingdom Relations sought insight into the financial challenges of maintaining and upgrading physical infrastructure in the Caribbean Netherlands (Bonaire, St. Eustatius, and Saba). Many infrastructure assets are in poor condition, and the current funding system does not provide adequate financial support for maintenance and replacement. The Ministry commissioned AEF to assess the required investments and identify funding gaps.

The study focused on 13 infrastructure categories, including roads, water, energy, and sea and airports. AEF mapped out costs based on local data, expert estimates, and comparisons with other regions, adjusting for demographic trends, climate adaptation, and sustainability.

Key Findings:

• Major financial challenges: The islands face significant infrastructure investment needs, particularly from 2025 to 2030, due to overdue maintenance and the high costs of construction in tropical conditions.
• Saba’s estimated costs: Total expenses for depreciation and maintenance will rise from $6 million in 2025 to $16 million in 2050.
• Uncertain funding: Some costs are covered through government payments and other funding sources, but a large portion remains uncovered.
• Implementation challenges: Limited local capacity and contractor availability may slow project completion. A revised investment scenario suggests spreading costs over time to ease implementation.
• Utility companies also face financial gaps: Saba’s utility infrastructure requires $84 million in investments over the study period, with $3 million in annual uncovered costs by 2050.

The study provides a realistic cost estimate, but uncertainties remain due to fluctuating prices, exchange rates, and project feasibility. The findings aim to support future funding discussions for sustainable infrastructure development in the Caribbean Netherlands.

Read an automatically translated version of the original report HERE.

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