CAF approves USD 350 million for territorial development in Colombia
July 18, 2024
With this financing, CAF aims to strengthen local institutions, promote environmental governance, protect biodiversity, foster citizen participation, and improve territorial management.
To support the Colombian government in promoting territorial development from different perspectives of institutional strengthening, CAF -Development Bank of Latin America and the Caribbean- announced the approval of a USD 350 million loan for the implementation of a program aimed at regional transformation in the country.
This initiative aims to assist the national government in defining proposals that start from the territory, in line with the strategic axes of the National Development Plan 2022-2026, Colombia World Power of Life, and promotes biodiversity protection and inclusion in the territories.
Additionally, it aims to support the country’s efforts in the decentralization process, as well as in designing methodologies and strategies to enhance the financial, administrative, and technical capacities of the regions, and in strengthening sustainability and social balance.
“Since its founding in 1968, CAF has supported Colombia through large-scale development initiatives and projects, as well as by strengthening its technical and regulatory capacities to implement priority public policies. With this new financing, we aim to provide the regions of the country with the mechanisms and tools to move towards sustainable and inclusive development, fostering opportunities for all Colombians,” said Sergio Díaz-Granados, executive president of CAF.
The program includes a set of proposals and public policy guidelines that the government is implementing based on a Public Policy Matrix (MPP) consisting of five components: (i) competencies between levels of government; (ii) sources and uses of resources for development; (iii) institutional strengthening and governance in the territory; (iv) open government and territorial citizen participation; and (v) management and strengthening of territorial dimensions.
In the last five years, CAF has approved operations amounting to USD 8.991.3 million, averaging USD 1.798.3 million per year. Additionally, during the same period, total disbursements amounted to USD 6.768 million, equivalent to 14.9% of the total disbursed to shareholder countries. As of December 2023, Colombia’s portfolio stood at USD 3.954.8 million, equivalent to 11.6% of CAF's portfolio.