CAF Board of Directors approves USD 1.086 billion to boost sustainable infrastructure and climate resilience in Latin America

CAF, Development Bank of Latin America and the Caribbean, held its Board of Directors meeting, approving USD 1.086 billion for strategic operations in Brazil, Colombia, Uruguay and Chile. The CLXXXVI Board meeting consolidates the institution's commitment to sustainable development, climate action and the modernization of critical infrastructure throughout the region.

The funds approved will go to transformative projects that include reactivating the Colombian railway system, strengthening water security in the Montevideo Metropolitan Area, urban modernization in Brazil, and expanding lines of credit to boost SMEs and green projects in Chile.

Operations approved:

- Brazil: Integral urban development in Cabo de Santo Agostinho.

CAF approved US$150 million for the "Infrastructure and Urban Development Program - Do Cabo de Santo Agostinho/PE," an initiative that will benefit more than 200,000 inhabitants through strategic investments in urban mobility, basic sanitation, social infrastructure, and climate resilience measures.

- Colombia: Reactivation of railroad transportation

The Board of Directors approved US$500 million for the "Program to Support Railway Reactivation, Sustainable Mobility and Logistics Efficiency in Colombia. This strategic program will support the reactivation of the Colombian railway system, the electrification of public transportation, and the reduction of logistics costs, strengthening the country's competitiveness and contributing significantly to the reduction of carbon emissions.

- Uruguay: Water security for 2 million people

CAF will allocate US$200 million for the construction of the dam on the Casupá stream in the Santa Lucía River Basin. This strategic project will strengthen the drinking water supply of the Montevideo Metropolitan Area until 2045, benefiting 60% of the Uruguayan population. The infrastructure will have a storage capacity of 118 hm³ and will ensure supply during periods of severe drought.

- Colombia: Modernization of airport and air navigation system

The Board of Directors approved an US$86 million increase in funding to Aerocivil, bringing the total to US$326 million to modernize the country's airport and air navigation system. The funds will be used to implement advanced navigation technologies, expand strategic regional airports, and create a project management office.

- Chile: Boosting SMEs and green projects

CAF approved an increase of US$150 million in the revolving credit line to Banco Estado de Chile, bringing the total amount to US$350 million. The resources will be used to strengthen access to financing for micro, small and medium-sized enterprises, with an emphasis on women-led enterprises, energy efficiency projects, green businesses and sustainable social housing.