PART E
Financial Model Verification
IRR, NPV, breakeven, and investment ask traced to methodology and assumptions.
10-Year IRR (Pilot)
ESTIMATED22.5%
DCF model: 500 ha pilot, Year 1 CAPEX $3.74M, operating costs $3,800/ha/year, revenue ramp per FAO yield curves for volcanic Caribbean soils.
Higher than Caribbean average IRR (15-18%) due to: (1) volcanic soil fertility premium, (2) lower irrigation costs, (3) faster crop establishment in high-rainfall conditions.
NPV at full scale (8% discount)
ESTIMATED$28.4M
DCF model: 12,920 ha, 10-year projection, 8% discount rate (CDB standard for Caribbean agricultural projects).
Sensitivity: at 10% discount rate, NPV = $21.8M. At 6% discount rate, NPV = $37.2M. Model assumes no hurricane loss in projection period (CCRIF insurance covers downside).
Year 2
Cash flow model: volcanic soil fertility allows faster crop establishment. Dasheen/root crops produce income in 8-12 months. Bay tree seedlings begin producing in 18-24 months.
Earlier than Barbados pilot (Year 4) due to: (1) volcanic soil fertility, (2) higher rainfall, (3) lower irrigation CAPEX, (4) dasheen premium export market. Conservative: assumes 70% first-year yield.
Development finance investment ask
ESTIMATED$18.5M
5-year phased programme: Phase 1 grant ($4.2M), Phase 2 blended ($8.3M), Phase 3 concessional ($6.0M). Co-financing: EU ($3.2M), GCF ($5.0M), Government in-kind.
Total programme cost: $26.7M. Development finance portion: $18.5M (69%). Comparable to CDB agriculture sector investments in Grenada ($15M, 2019) and St. Lucia ($12M, 2021).
Carbon sequestration
PUBLISHED81,500 tCO2/yr
IPCC tropical agroforestry sequestration rate: 5-8 tCO2/ha/year. Applied: 6.3 tCO2/ha/year x 12,920 ha = 81,396 tCO2, rounded to 81,500.
IPCC 2019 Refinement: tropical agroforestry 3.5-12.8 tCO2/ha/year depending on species mix. 6.3 is conservative mid-range for multi-story Caribbean agroforestry with deep-rooted canopy species.
$43M/yr
43,000 tonnes local food production x average import replacement value of $1,000/tonne. Represents 50.6% of $85M food import bill.
Import replacement value based on weighted average of replaced imports: rice ($600/t), vegetables ($1,200/t), fruits ($800/t), processed foods ($1,400/t). Weighted average: $1,000/t.