Finance Ministry signs US$70 million loan contract with Inter-American Development Bank to support Public Sector Transformation Programme

The Ministry of Finance and the Public Service has signed a new US$70 million loan contract with the Inter-American Development Bank (IDB) to support the continued Public Sector Transformation Programme.

Representatives from the Ministry and the IDB participated in a visibility ceremony for the loan agreement in Kingston today.

The agreement signed on February 13, 2026, will finance reforms aimed at improving the efficiency and effectiveness of the public sector over an implementation period of approximately six years.

While building on the achievements of the previous transformation programme, the initiative will enhance core government operations, including human resources, pay roll, procurement, finance and accounts.

The programme will support continuation of the transition from fragmented manual processes to more integrated technology-driven solutions.

The project has four (4) components.

They are shared corporate services across Government, valued at just over US$35 million rationalisation of public bodies and delivery management valued at over US$10 million strengthening management structures and processes, of the civil service valued at US$16 million and modernisation of human resource management systems valued at US$7 million.

The ministry said the agreement will also introduce digital tools such as a public servant registry, single sign-on platform and enhanced recruitment and performance management systems.

The total programme cost is US$78.5 million with the Government contributing $8.5 million in counterpart funding.

Portfolio Minister Fayval Williams, welcomed the agreement as a significant milestone in ongoing public sector transformation efforts.

Meanwhile, country representative from the IDB Natacha Marzolf, highlighted that the programme matters because it is about improving lives, which is the IDB’s mandate.

The programme will be implemented by the transformation implementation unit.

The primary government beneficiary institutions include the office of the cabinet and the office of the services commission.

Other ministries, departments, and agencies will also benefit.