Better management and protection of the extensive waters surrounding Grenada will deliver a growth boost to Caribbean country, the bank said.

The programme builds on reforms already under way in Grenada to strengthen the country’s fiscal position. It will help “build buffers” to better cope with natural disasters or other economic shocks, according to the World Bank.

It also supports Grenadian environmental policies such as a ban on single use plastic bags, Styrofoam containers and utensils that are harmful to the ocean.

Grenada’s prime minister Keith Mitchell said the island has 70 times more space at sea than on land.

“Our marine and coastal resources have become the main engine of our economy and we are at the frontier of adopting climate smart development policies.

“This new financing will enable us to transition to a blue economy and we are well on our way towards building a truly resilient and prosperous country,” he said.

Grenada has also introduced a number of public sector reforms to improve service delivery and efficiency of public spending to reduce public debt.

The country has seen sustained growth of 5.5% on average since 2014 and reduced its public debt by 30 percentage points, to 71% of GDP.