CAF pledges USD 650 million to promote sustainable recovery and energy transition in Peru
July 19, 2022
CAF’s Board of Directors approved two credits in favor of Peru. The first will go towards strengthening the nation’s fiscal management and promote an economic recovery with an emphasis on the most vulnerable households, while the second will finance the development of infrastructure to connect about 205,000 homes to the cooking gas grid and at the same time help improve the sustainability management of the company Cálidda.
CAF—development bank of Latin America—approved two loans totaling USD 650 million in favor of Peru. The first aims to support the government’s fiscal management and promote the availability of public funds to address the impacts of the pandemic. The second, in favor of the company Cálidda, seeks to help close the infrastructure gap in public utilities in Lima and Callao, and aid in improving the company’s sustainability management by setting and monitoring of objectives set out in CAF’s energy transition agenda.
The first loan, totaling USD 500 million, will support the fiscal management of the Government of Peru and will help promote the availability and timely use of public funds to address the economic and social impacts of the pandemic, to identify policy actions aimed at economic growth and its public finances within the framework of Peru’s post-COVID-19 sustainable recovery.
The second is a sustainability-linked facility, for up to USD 150 million, for the company Cálidda, whose shareholders include Grupo Energía de Bogotá and Promigas, and will contribute to partially finance the infrastructure development of the natural gas distribution grid through the pipeline network of Lima and Callao. More than 490 kilometers of pipes are expected to be laid and nearly 205,000 homes will be connected in the company’s concession area. Additionally, this facility is linked to Cálidda’s sustainability management through client commitments, related to maintaining an ESG (environmental, social and governance) rating on a robust scale and to reducing the carbon footprint intensity index in the client’s operations during the lifespan of the facility.
“These loans reflect our commitment to an economic revival that leaves no one behind, and to an energy transition that helps speed up the establishment of more sustainable economies within the framework of the climate commitments of the countries of the region. CAF’s funds are in addition to the Peruvian government’s efforts to achieve sustainable, equitable, and environmentally friendly economic development,” said CAF executive president Sergio Díaz Granados.
To support Panama, in the last five years (2017–2021) CAF has approved operations totaling USD 11.72 billion, for an average of USD 2.34 billion per year. At the same time, total disbursements over that period amounted to USD 6.32 billion, for an annual average of USD 1.26 billion.