A few days before the end of the year, Latin America and the Caribbean has approved a measure so that 2025 looks a little more sustainable. This Thursday, during its last Board meeting of the year, held in El Salvador, it gave the green light to a fund of 2,478 million dollars to finance strategic projects in Argentina, Brazil, Chile, Ecuador, Honduras, Panama, Dominican Republic, Trinidad and Tobago. Tobago and Uruguay. This figure reflects the institution’s growing capacity to mobilize financial resources in key areas of Latin American and Caribbean development, such as the energy transition, the reduction of poverty and inequalities, digital transformation or climate resilience.
These operations will be allocated to projects that range from the modernization of urban and rural infrastructure to the promotion of , the promotion of agricultural competitiveness, the improvement of urban mobility, the modernization of health services and social equity. These are the fund’s main bets, country by country:
- Argentina (Rio Negro): Endowed with 140 million dollars, it seeks the modernization of the essential services and road infrastructure of the Province of Río Negro. This financing will also allow updating water and sanitation systems, and strengthening government management. It is estimated that it will benefit 730,000 inhabitants of the Patagonian region.
- Brazil (Porto Alegre): To address the impacts of the events suffered in the capital of Rio Grande do Sul in April and May of this year, CAF will carry out a project that seeks to strengthen the city’s climate resilience and directly benefit more than 100,000 people.
- Chile: With a loan of 300 million, the multilateral bank will support the ambitious expansion plan of the Santiago Metro, increasing the network by 50%. This project will benefit more than 4 million daily travelers, with expanded coverage that will reach 80% of the metropolitan area.
- Ecuador: CAF approved a loan model of 100 million in favor of Banco Internacional to support approximately 360 operations aimed at small and medium-sized businesses (SMEs) led by women and 194 sustainable business projects. This financing includes initiatives related to energy efficiency and green businesses.
- Honduras: A loan of 160 million that will be used for the expansion and rehabilitation of the Western Corridor CA-4, Chamalecón – Naco section. This project will modernize 24 kilometers of highway, using hydraulic concrete, improving connectivity, security and logistical integration in Central America.
- Panama: More than a million people will benefit from an improved sanitation system through 491 million dollars in loans. This project includes the construction, expansion and modernization of critical sanitation infrastructure, as well as pre-investment and supervision studies.
- Dominican Republic: CAF approved a loan of 250 million dollars to improve irrigation systems on agricultural lands, which will allow the irrigation surface to be expanded by 10,960 hectares. With these hydraulic works, the aim is to guarantee a constant and equitable water supply for crops, increase the number of harvests and minimize the environmental impact. This project will benefit more than 52,274 inhabitants.
- Trinidad and Tobago: With financing of 250 million, two strategic programs will be supported: the modernization of resilient road infrastructure and the improvement of educational infrastructure.
- Uruguay: With a credit line of 300 million, CAF will support the Bank Retirement and Pension Fund (CJPB) within the framework of the reform of the country’s pension system. This financing will guarantee the payment of benefits to more than 38,000 beneficiaries, mostly women.
Sergio Díaz-Granados, executive president of CAF, celebrated that these funds will benefit millions of citizens and promote “more dynamic and resilient” economies: “We are working to solve the main challenges of Latin America and the Caribbean, such as the impacts of climate change, the need to create modern and sustainable infrastructures, the energy transition or social inclusion.”
In the board of directors, the investments for 2024 were also reviewed. 35% of CAF’s financing this year was allocated to initiatives that promote the protection of biodiversity, the preservation of strategic ecosystems and adaptation. This achievement comes closer to the institution’s commitment to become the region’s green bank and to dedicate 40% of its financing to environmental and sustainability initiatives by 2026.
CAF also approved a Financing Facility for Investment Projects in the Caribbean destined for economic and social infrastructure initiatives. This new instrument, endowed with 50 million, seeks to address the particularities of the Caricom member countries and is designed to offer an innovative, agile and flexible approach, adapting to the specific needs of the region. On the other hand, Antigua and Barbuda took a new step towards its incorporation as a CAF shareholder with the approval of the increase in shares to be subscribed by the Caribbean country.
