CAF -development bank of Latin America and the Caribbean– and KfW, the development bank of Germany, formalized a concessional credit linethanks to the funding subsidy granted by the German government, through its Federal Ministry for Economic Cooperation and Development (BMZ). ANDThis credit facility for an amount of USD 156,141,000.00 will be aimed at developing water and sanitation projects in the region.
The signing of this new loan reaffirms the commitment of both institutions to implement green initiatives, ensure the water, energy and climate resilience of the region, and move hand in hand towards a more prosperous and inclusive future for Latin America and the Caribbean. The new loan will be channeled by CAF to refinance sub-loans to public and private sector entities, focusing on environmental sustainability, mitigation of greenhouse gas emissions and adaptation to climate change. For this line of credit, around 9 potentially eligible CAF water and sanitation projects have already been identified in Brazil, Colombia, Ecuador, Panama, Paraguay, Uruguay
More specifically, the funds will be allocated to four priority sectors: rehabilitation, expansion and new construction of wastewater systems and wastewater treatment plants; rehabilitation, expansion and modernization of water supply systems, and implementation of measures for greater water efficiency; urban drainage and flood protection projects; and implementation of energy efficiency measures in water supply.
“This new line of credit reflects the strength of our alliance that has been evolving, reflecting the financial and institutional maturity achieved by CAF in recent years, reinforcing the bank’s commitment to water security and sustainability. These funds are essential to carry out water and sanitation projects with high social impact, which are crucial for adaptation to climate change and to improve the quality of life of Latin Americans and Caribbean people.“said Ignacio Corlazzolli, manager of Resource Mobilization and Global Alliances at CAF.
For her part, Claudia Arce, director for Latin America and the Caribbean at KfW, commented: “The continued collaboration between CAF and KfW represents the enduring commitment of Germany and our institution to support sustainable development in Latin America and the Caribbean. Our goal is to continue promoting together sustainable projects that improve access to water and sanitation, strengthening water and environmental resilience in the region.”
CAF’s alliance with KfW dates back to 1977 – totaling 48 years of uninterrupted collaboration. TO Throughout this period, theThe relationship has contributed significantly to regional development, with KfW providing credit lines totaling USD 2,075 million and non-reimbursable resources of more than USD 60 million.
