CAF approves USD 296 million for educational infrastructure and productive transformation in Ecuador

Today, CAF, Development Bank of Latin America, approved two operations in favor of Ecuador for a total amount of USD 296 million targeted to finance projects aimed at improving and strengthening the educational infrastructure, as well as promoting changes in the productive matrix, private investment, and innovation. 

New Educational Infrastructure 

The first approval, for USD 176 million, will be for the New Educational Infrastructure Program, which seeks to improve and expand the offer of educational services through the construction and equipment of 48 Millennium Educational Units (UEM, for its acronym in Spanish) in the Ecuadorian territory, focusing on unattended areas. 

CAF's Executive President, Enrique Garcia, highlighted the significant impact that this project will have; "It is an inclusive project that will contribute to expand the coverage and improve educational quality, especially in rural areas. It has been estimated that 110 thousand youths will benefit annually with the reconditioning of the infrastructure necessary for quality education". 

In each school, the project includes the adaptation of the physical area, construction which includes classrooms, libraries, laboratories, and sports and recreational area, and purchase of furniture and technology equipment.   

Support for Changes in the Productive Matrix 

The second approval, for USD 120 million, complements the program advanced by the Corporacion Financiera Nacional (CFN) (National Financial Corporation), with the purpose of promoting changes in the country's productive matrix by means of financing companies, sectors, chains, and industries prioritized by the Ecuadorian government. 

The government is implementing a public policy agenda to promote changes in the productive matrix, private investment, and innovation. In this scenario, the CFN, through its Progresar (Progress) Program, will grant financing to companies and projects focused on changes in the productive matrix through a Financing Line for Fixed Assets. 

In the framework of the Progresar program, CAF will partially finance this line of fixed assets for credits aimed at companies or projects with investments whose objective is to increase exports, strategically substitute imports, and diversify production.  

CAF's Executive President, Enrique Garcia, pointed out the importance of promoting the region's productive transformation programs "which positively impact the country's trade balance and the generation of quality employment, in addition to ensuring production with greater value added". 

CAF's financing will also include an institutional strengthening component for the CFN, to advice companies as well as generate instruments to measure the program's impact, technical support and human resources training for risk evaluation, adoption of best environmental practices, and development of new products.