CAF approves historic USD 1.3 billion financing for prison systems and energy access in Peru

The first loan, for USD 800 million, will go to the "Program for Improving and Closing Gaps in the National Penitentiary System," the most ambitious of its kind in South America. This program, implemented by Peru's Ministry of Justice and Human Rights, seeks to radically transform the conditions of persons deprived of their liberty, in line with the National Penitentiary Policy 2030 and the Emergency Penitentiary Sector Strategy 2025-2026.

The project will renovate prison infrastructure, including modern buildings with sustainable systems (solar energy, water reuse and recycling); improve security and prison management through advanced technology and adequate furniture; and promote a focus on rehabilitation and social reinsertion, reducing recidivism and strengthening the social fabric.

The second operation, for USD 500 million in favor of Cálidda, the main distributor of natural gas in Peru, will be aimed at expanding access to clean and affordable energy in the metropolitan region of Lima and Callao.

The project will connect an additional 900,000 people to natural gas service; expand 569 km of distribution networks, prioritizing vulnerable communities; reduce CO2 emissions and promote ESG (Environmental, Social and Governance) standards; and support women entrepreneurs through the Cálidad 2.0 Popular Kitchens Program and technical scholarships for women.

"These initiatives reflect CAF's strategy to promote sustainable infrastructure, social justice and inclusive growth in the region. With a combined investment of USD 1.3 billion, CAF continues to support Peru in laying the foundations for a more equitable and sustainable future for all," said Sergio Diaz-Granados, CAF's Executive President.

CAF's Board of Directors met for the first time in Seville, in the run-up to the Fourth International Conference on Financing for Development (FFd4), to promote new projects and resources to improve the well-being of all Latin Americans and Caribbean people.