The Caribbean Development Bank (Eleventh Replenishment of the Special Development Fund (Unified)) Order 2026
This statutory instrument, The Caribbean Development Bank (Eleventh Replenishment of the Special Development Fund (Unified)) Order 2026, formally approves the Secretary of State making payments on behalf of the UK Government, up to £21 million, as a further contribution to the Caribbean Development Bank's Special Development Fund (Unified) for its eleventh replenishment cycle, pursuant to a resolution adopted in March 2025 and exercising powers granted under the International Development Act 2002.
Arguments For
Authorizes the UK to fulfill its commitment to international development goals by contributing funds to a multilateral development bank aimed at supporting the Caribbean region.
Ensures compliance with existing statutory powers under the International Development Act 2002, which governs payments to such institutions.
Supports economic stability and development within Caribbean nations, potentially fostering stronger diplomatic and trade relationships between the UK and the region.
The process includes Treasury approval and parliamentary scrutiny (the draft Order was approved by the House of Commons), indicating robust governmental oversight of the expenditure.
Arguments Against
The allocation of £21 million represents a significant overseas financial commitment that could otherwise be directed towards domestic priorities or other development aid channels.
Reliance on a Resolution adopted in March 2025 means these funding levels were set prior to immediate economic conditions in 2026, potentially affecting the real value of the contribution.
Potential criticism regarding the need for a specific statutory instrument for funding activities already covered under broader international development legislation, adding administrative steps.
While no impact assessment was deemed necessary, there is always a risk of unintended cross-sectoral economic or environmental impacts in the recipient territories that are not explicitly detailed.
2026 No. 365
INTERNATIONAL DEVELOPMENT
The Caribbean Development Bank (Eleventh Replenishment of the Special Development Fund (Unified)) Order 2026
Made
24th March 2026
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Coming into force in accordance with article 1
This identifies the document as a Statutory Instrument from 2026, number 365, falling under the category of International Development legislation.
It specifies that the Order concerns the Eleventh Replenishment of the Caribbean Development Bank's Special Development Fund (Unified).
The Order was formally made on March 24th, 2026, and its commencement date is set by its first article.
The Secretary of State makes this Order in exercise of the powers conferred by section 11(4) of the International Development Act 2002 ('the Act')( a ) for the purposes of approving a payment under section 11(3) of the Act.
The Secretary of State is issuing this Order by using the authority given under section 11(4) of the International Development Act 2002.
The goal of using this power is specifically to formally approve a financial payment that corresponds to the authorization outlined in section 11(3) of that same Act.
Section 11 of the Act provides that where the Government of the United Kingdom becomes bound to make a relevant payment( b ) to a multilateral development bank( c ) the Minister( d ) may make the relevant payment and other associated payments specified in section 11(3).
Section 11 of the principal Act allows a designated Minister to execute a 'relevant payment' and any related associated payments, as specified in subsection (3), once the UK Government has legally committed to paying a multilateral development bank.
In accordance with section 11(4) of the Act, this Order is made with the approval of the Treasury.
This regulation is established only after receiving formal approval from His Majesty's Treasury, as required by section 11(4) of the International Development Act 2002.
In accordance with section 11(5) of the Act, a draft of this Order has been laid before the House of Commons and approved by resolution of that House.
The prerequisite for this Order becoming law involved presenting a draft version to the House of Commons.
This draft was then formally approved by a resolution passed by that legislative body, fulfilling the requirement in section 11(5) of the Act.
Citation and commencement
- This Order may be cited as the Caribbean Development Bank (Eleventh Replenishment of the Special Development Fund (Unified)) Order 2026 and comes into force on the day after the day on which it is made.
Article 1 establishes the official short title for this legal instrument.
It also dictates that the Order takes effect starting the day immediately following the date it was officially made.
Interpretation
- In this Order-
'the Agreement' means the Agreement establishing the Caribbean Development Bank dated 18th October 1969 and ratified by the United Kingdom on 23rd January 1970( e );
'the Bank' means the Caribbean Development Bank established by the Agreement;
Article 2 sets out definitions for terms used throughout the Order. 'The Agreement' refers to the founding document for the Caribbean Development Bank, which the UK ratified in 1970. 'The Bank' is the Caribbean Development Bank created under that founding Agreement.
'the Fund' means the Special Development Fund established by article 8 of the Agreement and referred to by the Bank as the Special Development Fund (Unified);
'the Government' means the Government of the United Kingdom;
'the Resolution' means the Resolution titled 'Replenishment of the resources of the Special Development Fund (Unified) eleventh cycle (SDF 11)' adopted by the contributors to the Fund on 14th March 2025( a ).
The term 'the Fund' refers to the Special Development Fund established by the Agreement, which the Bank currently calls the Special Development Fund (Unified). 'The Government' clearly means the UK Government. 'The Resolution' is the formal decision from the Fund's contributors, dated March 14, 2025, authorizing the eleventh cycle replenishment.
Relevant Payments
- The Secretary of State may, on behalf of the Government and in accordance with section 11 of the International Development Act 2002-
- (a) make payment of a further contribution to the Fund not exceeding £21 million in accordance with arrangements made between the Government and the Bank in accordance with the Resolution, and
- (b) make payment of sums required to redeem any non-interest-bearing and non-negotiable notes or other obligations which may be issued or created by the Secretary of State and accepted by the Bank pursuant to the arrangements mentioned in paragraph (a).
Article 3 grants the Secretary of State the authority, acting for the UK Government under Section 11 of the Act, to execute specific payments.
This includes making a new contribution, up to a maximum of £21 million, to the Fund based on arrangements made with the Bank, which must adhere to the controlling Resolution.
Additionally, it authorizes payments needed to redeem any non-interest-bearing, non-negotiable notes or similar obligations issued by the Secretary of State and accepted by the Bank under those same funding arrangements.
| 23rd March 2026 | Chris Elmore Parliamentary Under-Secretary of State Foreign, Commonwealth and Development Office | |-------------------|----------------------------------------------------------------------------------------------------| | We approve, | | | 24th March 2026 | Two of the Lords Commissioners of His Majesty's Treasury |
This section contains the signatory blocks for the legislation.
Chris Elmore, as the Parliamentary Under-Secretary of State for the Foreign, Commonwealth and Development Office, signed the document on March 23, 2026.
Approval was subsequently given by two Lords Commissioners of His Majesty's Treasury on March 24, 2026, confirming Treasury sanction for the Order.
EXPLANATORY NOTE
(This note is not part of the Order)
This Order approves the making of payments on behalf of the Government of the United Kingdom to the Caribbean Development Bank (the 'Bank') of sums not exceeding £21 million as a contribution to the Eleventh Replenishment of the Special Development Fund (Unified) (the 'Fund'). The payments approved by this Order will be made pursuant to the Resolution adopted by the contributors to the Fund on 14th March 2025. The Order also provides for the redemption of non-interest-bearing and non-negotiable notes issued by the Secretary of State pursuant to arrangements between the Government and the Bank.
An impact assessment has not been produced for this instrument as no, or no significant, impact on the private, public or voluntary sector is foreseen.
The Resolution referred to in this Order is available online at: https GLYPH<c=0,font=/GFEDCB+TimesNewRomanPSMT> ://www GLYPH<c=0,font=/GFEDCB+TimesNewRomanPSMT> .caribank.org/our-wor k/programmes/special-development-fund; a copy may be obtained by application to the Foreign, Commonwealth and Development Office, King Charles Street, London SW1A 2AH.
The Explanatory Note confirms that the purpose of the Order is to approve the UK Government paying up to £21 million to the Caribbean Development Bank's Fund, based on the March 2025 Resolution.
It further notes that the Order covers redeeming specific types of notes issued by the Secretary of State relating to these funding arrangements.
Importantly, a formal impact assessment was deemed unnecessary as no significant impact on the private, public, or voluntary sectors was anticipated.
Details on where to find the authorizing Resolution are also provided.
Related
Correction Slip
A correction notice was issued to amend typographical errors within the original Statutory Instrument by consistently changing 'Carer's Additional Person Payment' to 'Carer Additional Person Payment'.
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