USTDA and CAF launch new action plan to improve infrastructure project design in Latin America and the Caribbean

The United States Trade and Development Agency (USTDA) and CAF-development bank of Latin America agreed today on an action plan to prepare and finance priority projects in several infrastructure sectors, including transportation, digital connectivity, clean energy, climate change, water and environment, with the purpose of improving planning and enhancing its benefits such as cost reduction, timing, resilience and quality, among others.

This new action plan is included within the scope of the global cooperation established within the Memorandum of Understanding entered into by both institutions in 2015 to promote economic cooperation between CAF shareholder countries and the United States of America.

USTDA Director, Enoh T. Ebong, and CAF’s executive president, Sergio Diaz-Granados, ratified the action plan at an event held today in Washington DC, a meeting that served to commemorate and renew the solidarity commitment between the institutions.

USTDA provides grant funding for project preparation activities, including feasibility studies, technical assistance and pilot projects, to public and private sector project sponsors across Latin America and the Caribbean. The action plan seeks to support projects in countries eligible for both USTDA and CAF, currently Argentina, Brazil, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Jamaica, Mexico, Panama, and Paraguay.

“Sustainable infrastructure is critical for long-term development and prosperity throughout the Latin America and Caribbean region. USTDA and CAF share a vision and complementary set of tools to help make that happen,” said Enoh T. Ebong, USTDA’s Director. “USTDA’s renewed partnership with CAF aligns with the Partnership for Global Infrastructure and Investment, which President Biden and the G7 leaders launched earlier this week. This partnership will help deliver game-changing projects to close the infrastructure gap across the region, as well as increase U.S. industry engagement in the region’s infrastructure development.”

Sergio Diaz-Granados, CAF's executive president, said: "We continue to join allies to improve the structuring of projects with strategic partners such as USTDA. This is essential to improve the designs, budgets and necessary studies so that when the time comes for execution and maintenance we have more efficient, sustainable and resilient works in terms of climate change adaptation, in line with our purpose of becoming the green bank of Latin America and the Caribbean".

Participants from both institutions will collaborate to ensure that the scope of initiatives, development of terms of reference, evaluation metrics and deliverables adequately reflect project needs to ensure successful project financing and implementation. In addition, the action plan highlights the potential for valuable technical workshops in upcoming USTDA-funded infrastructure orientation visits within Latin America and the Caribbean.