CAF, the European Union, and KfW committed to financing sustainable projects in Latin America

In order to continue to strengthen the strategic alliance for the promotion of sustainable development in Latin America, CAF, Development Bank of Latin America, and KfW Entwicklungsbank (German Development Bank) subscribed two agreements on September 16th in Germany, to At the same time, an agreement was subscribed for technical assistance, reaching EUR 3 million, aimed at improving the planning, design, and public investment in the urban transportation systems of Latin America, whose purpose will be to structure energy efficient projects that use clean technology in this sector. These resources were granted by the European Union with the Latin American Investment Facility (LAIF), to be managed by the KfW and executed by CAF. 

Hugo Sarmiento, CAF´s Finance Vice-President, highlighted that these resources strengthen CAF´s catalytic role to benefit the projects it finances in the region. In addition, it expands the scope of the important alliance established with the KfW and the European Union. This alliance allows us to further support climate change projects in Latin America and the Caribbean.

Stephan Opitz, member of the management committee, underlined the importance of the issues related to climate change for the KfW. "We have many valuable experiences in financing Renewable Energies, Energy Efficiency, and Urban Transportation, both in Germany and at an international level. Naturally, each country has its own character, so the cooperation with CAF, which has excellent knowledge of the Latin American countries, has an added value for us. We can learn from each other and join efforts. We are two development banks specialized in financing infrastructure and investments to reduce the effects of climate change".

CAF and KfW have established a close relationship since 1977, which has allowed for the development of numerous projects that favor regional integration and sustainable development. In the past five years, CAF and the KfW have subscribed agreements for USD 755 million, aimed at financing the following sectors: Energy Efficiency on the supply side for USD 120 million; Urban Public Transportation for USD 200 million; Water and Sanitation for USD 100 million; Mitigation of the Effects of Climate Change for USD 195 million; and Infrastructure for USD 140 million. 

The European Commission is the executive body of the European Union and represents the interests of the whole of Europe (not of any specific country). The term "Commission" describes both the College of Commissioners as well as the institution, with headquarters in Brussels (Belgium) and offices in Luxemburg. The Commission also has representative offices in all its member countries. 

KfW Entwicklungsbank is a competent and valuable advisor for current issues related to the field of development. Its main objectives are the reduction of poverty, ensuring peace, and the co-design of globalization. The German government has requested them to support reforms, infrastructures, and financial systems to achieve a compatible economic, social, and ecologic growth. As a member of the KfW (KfW banking group), it is a partner to finance development projects around the world.