CAF and MCDF Promote Water Governance Strengthening in the Puyango-Tumbes Basin

In a joint effort to improve the management of shared water resources between Peru and Ecuador, the Development Bank of Latin America and the Caribbean (CAF) and the Multilateral Cooperation Center for Development Finance (MCDF) announced the implementation of the project "Capacity Development Assistance in the Transboundary Puyango-Tumbes Basin." This initiative is backed by up to USD 2 million in non-reimbursable funds approved by the MCDF Governing Committee and will be executed by CAF in collaboration with the Binational Development Plan for the Peru-Ecuador Border Region over a 24-month period.

As part of the project's launch, a high-level meeting was held, attended by Gianpiero Leoncini, CAF Executive Vice President; Zhongjing Wang, MCDF CEO; and Ambassador Eric Anderson, Secretary General of the Peruvian Ministry of Foreign Affairs. They highlighted the project's importance for binational cooperation and water security in the border region.

The project aims to strengthen water governance in the Puyango-Tumbes Basin by promoting the integration of authorities from both countries, optimizing access to key information for decision-making, and fostering strategic investment planning for water security. The initiative will be developed in coordination with the Binational Development Plan for the Ecuador-Peru Border Region, ensuring comprehensive and sustainable water resource management in collaboration with local actors from both nations.

"Promoting investment in high-quality connectivity infrastructure through partnerships is essential for MCDF’s non-reimbursable cooperation under the Puyango-Tumbes watershed project, which will support technical efforts to reduce pollution and improve water resource management," stated Zhongjing Wang, MCDF CEO. "This is a key milestone in our history, as it is the first transboundary water resource management project to receive MCDF support.", said.

Ambassador Eric Anderson emphasized the importance of this cooperation in strengthening the resilience of local communities and ensuring sustainable water use for the benefit of the population.

Gianpiero Leoncini, CAF Executive Vice President, reaffirmed the bank's commitment to promoting water governance initiatives that contribute to sustainable development in Latin America and the Caribbean. "This initiative strengthens CAF’s work in the region, fostering innovative and sustainable solutions for water management, a vital resource for the well-being of our communities and the economic growth of our countries," he stated.

The project launch marks another milestone in CAF’s efforts to promote regional integration. This initiative, involving two of its founding countries, enables coordinated progress in transboundary water resource management and lays the foundation for future investments to ensure the sustainability of ecosystems and the development of communities in the Puyango-Tumbes Basin.

As part of this event, the joint work agreement was formalized through a Letter of Collaboration signed by Santiago Rojas, CAF Regional Manager; Fernando Iñiguez, Executive Director of the Binational Plan, Ecuador Chapter; and Javier Yépez, Executive Director of the Binational Plan, Peru Chapter.

The Binational Development Plan for the Peru-Ecuador Border Region is an international organization with chapters in Peru and Ecuador. It was established under the Broad Agreement on Border Integration, Development, and Good Neighborliness as a component of the Global and Definitive Peace Agreement between Peru and Ecuador, signed in Brasília on October 26, 1998. Its creation represents a state policy that promotes mutual cooperation between the two countries, with the primary objective of improving the quality of life of border populations through activities, projects, and programs that facilitate economic integration and accelerate productive and social development.

MCDF is a multilateral financial mechanism designed to support cross-border infrastructure projects in four strategic sectors: transportation and logistics, energy, water, and information and communication technologies (ICT). As an implementing agency of the fund, CAF has secured 12 MCDF grants in the past 18 months, mobilizing USD 13.4 million for technical assistance in the region. Additionally, under the leadership of Gianpiero Leoncini, CAF assumed the presidency of the MCDF Coordination Committee for the first time and hosted the 27th meeting of this body in Lima, strengthening collaboration and communication among key stakeholders.