AIIB and CAF to Work Together to Finance Projects in Latin America and the Caribbean
October 13, 2022
This agreement aims to promote the co-financing of initiatives that foster the sustainable development of Latin America and the Caribbean in strategic sectors in areas of common interest.
The Asian Infrastructure Investment Bank (AIIB) and CAF—development bank of Latin America—have signed a Memorandum of Understanding with which they seek to strengthen collaboration on development cooperation and catalyze additional funds. This initiative will allow institutions to maximize the impact of their operations, adding greater value to the countries of the region.
This agreement will promote joint initiatives that help support the sustainable development and energy transition of Latin America and the Caribbean and will be key to achieving CAF’s goal of becoming the Green Bank of Latin America and the Caribbean.
This MoU will raise foreign investment through co-financing of operations that promote sustainable economic development and infrastructure projects in order to promote and boost connectivity between Asia and Latin America. It will also promote regional cooperation and partnership to address development challenges, working closely together.
The Memorandum of Understanding, signed by Gabriel Felpeto, CAF Vice President of Finance, and Danny Alexander, AIIB Vice President of Policies and Strategy, comes at a historic moment in which the countries of the region are seeking sustainable ways to change their energy sources, as defined in the United Nations 2030 agenda and aligned with the strategies of the two institutions.
AIIB Vice President Danny Alexander highlighted the importance of strengthening collaboration with CAF in common members in Latin America to support sustainable economic development and climate change. “The partnership between the two institutions enables more effective cooperation and allows us to leverage each other’s comparative advantages. In particular, the AIIB is eager to learn from CAF’s great experience in financing infrastructure projects in Latin America,” said Alexander.
For his part, CAF executive president Sergio Díaz-Granados said that “the region faces great challenges in terms of sustainable development. Our challenge as a green bank in Latin America and the Caribbean is to support the countries of the region to react at the speed and scale that these challenges demand, and to shift them back on the path to sustainable development. “This agreement will help us identify and promote investment opportunities in sectors of common interest that foster a sustainable economic recovery, and that underpin the fight against climate change.