CAF approves USD 500 million in financing to expand Chile's rail network

The Board of Directors of CAF, Development Bank of Latin America and the Caribbean, approved a loan of up to USD 500 million in favor of Empresa de los Ferrocarriles del Estado (EFE) of Chile, to help finance the expansion and modernization of the country's railway network.

The investment plan will improve rail infrastructure, reduce carbon emissions, and promote connectivity and regional economic development. The project is expected to benefit millions of passengers annually, favor the dynamism of cargo transportation, and contribute to the reduction of greenhouse gas emissions.

“This investment in Chile's rail network will not only improve the country's mobility and logistics, but will also boost its sustainable development and global competitiveness. It is a clear example of how quality infrastructure, in this case in favor of a priority mode of transportation for the country, can transform the lives of people and the future of a nation,” said Sergio Diaz-Granados, CAF's executive president.

The main projects in EFE's investment plan include the new Santiago - Melipilla and Santiago - Batuco passenger train lines. These projects address Chile's need for a more efficient and sustainable transportation system, reducing road congestion, improving connectivity and reducing the carbon footprint of the transportation sector, thus responding to the carbon-neutrality commitment that Chile has signed up to by 2050.