CAF Approves USD 3.175 Billion to Boost Sustainable Development in Latin America and the Caribbean

CAF – Development Bank of Latin America and the Caribbean – approved a USD 3.175 billion financial package for Ecuador, Panama, Uruguay, Mexico, and the Dominican Republic to finance projects aimed at productive transformation, regional integration, energy transition, sustainable mobility, and climate and social resilience.

These approvals come one day after the institution’s Board of Directors re-elected Colombian Sergio Díaz-Granados as CAF’s Executive President for the next five years, a decision that will provide continuity, leadership, and a clear vision to further strengthen CAF’s role as an engine of sustainable development in the region. Among the achievements of Díaz-Granados’ administration highlighted by the Board are the capitalization of USD 7 billion, geographic expansion, the best risk ratings in the institution’s history, and the promotion of private sector development.

In addition, Haiti and Saint Kitts and Nevis initiated the process to join CAF through the acquisition of Series C shares, which will allow them, once the formal procedures are completed, to access financing instruments, including credit and technical cooperation. Meanwhile, Barbados became a Series A member country, reflecting the growing participation and influence of Caribbean countries within the institution.

“These approvals demonstrate the growing confidence of countries across the region in CAF, an institution that is becoming increasingly solid, relevant, and influential,” said Sergio Díaz-Granados, CAF’s Executive President. “With the incorporation of Haiti and Saint Kitts and Nevis, we continue advancing toward becoming the multilateral development institution with the broadest geographic presence in Latin America and the Caribbean.”

These are the operations approved by CAF:

Ecuador: CAF approved USD 303 million for the Quito Metro and improvements to Ecuador’s electricity transmission system. The funds will finance two strategic projects: the expansion of Line 1 of the Quito Metro and the expansion of the national transmission system.

Panama: CAF approved a USD 500 million loan to Banco Nacional de Panamá to support agribusiness and SMEs. The operation is expected to benefit more than 3,300 small and medium-sized enterprises, at least 1,000 of which are led by women. Fifty percent of the funds will be allocated to rural areas to promote sustainable and inclusive growth in Panama’s productive sector.

Uruguay: CAF approved USD 980 million for four projects in transportation, climate resilience, vulnerable communities, and subnational governments. This historic financing will support the transformation of vulnerable areas, improvements to public transportation in Montevideo, the reduction of territorial gaps, and the strengthening of public debt sustainability in the face of extreme natural events.

Mexico: CAF approved USD 300 million to strengthen Mexico’s electricity infrastructure. The financing will partially support the investment plan of the Federal Electricity Commission (CFE), particularly the expansion and modernization of electricity transmission and distribution networks, covering more than 1,870 kilometers and benefiting over 44 million people nationwide.

Dominican Republic: CAF approved USD 566 million for three projects in the energy, security, and water and sanitation sectors. These operations will strengthen water security in Greater Santo Domingo, modernize the penitentiary system, and expand the country’s energy capacity.

With this set of approvals, CAF reaffirms its role as a key partner for sustainable development in Latin America and the Caribbean, mobilizing resources for transformative projects that address structural gaps and contribute to a more prosperous future for all.