CAF approves USD 700 million to modernize and expand Chile's railway network

In a decision that reaffirms its long-term commitment to the development of sustainable infrastructure in Chile, the Board of Directors of CAF, Development Bank of Latin America and the Caribbean, approved a second phase of financing for up to USD 700 million to Empresa de los Ferrocarriles del Estado (EFE).

This new operation gives continuity to the initial financing of USD 500 million approved in July 2024, consolidating CAF as the main strategic partner in EFE's Strategic Investment Plan 2024-2031, which contemplates more than USD 5 billion in transformative projects for the Chilean railway sector.

"This second phase of financing demonstrates our unwavering commitment to Chile and to the transformation of its transportation system. With this operation, CAF consolidates its position as EFE's strategic partner in the construction of world-class rail infrastructure. This investment will not only improve the country's mobility and logistics, but will also boost its sustainable development and global competitiveness. It is a clear example of how quality infrastructure, in this case in favor of a priority mode of transportation for the country, can transform the lives of people and the future of a nation," said Sergio Diaz-Granados, executive president of CAF, Development Bank of Latin America and the Caribbean.

CAF's continued accompaniment of the Chilean rail sector reflects a shared strategic vision of the fundamental role of rail transport in the country's sustainable development. This second phase will accelerate the implementation of the program, which takes advantage of Chile' s dynamic population growth and urban concentration as an opportunity to strengthen mobility and regional connectivity, responding to the country's aspirations for a more efficient and sustainable transportation system.

EFE's rail network, which has 2,311 kilometers of railroad tracks, is undergoing an unprecedented transformation, which has the sustained support of CAF, positioning itself as the backbone of the transportation of the future and contributing significantly to the carbon-neutrality commitment that Chile has subscribed to by 2050.

The investment plan will substantially improve rail infrastructure, reducing carbon emissions, fostering connectivity and regional economic development, while reducing road congestion and the carbon footprint of the transportation sector. It is expected that the projects will benefit millions of passengers annually and favor the dynamism of freight transportation, contributing directly to the reduction of greenhouse gas emissions.