CAF Approves $1.32 Million for Infrastructure, Energy, Road Integration, Water in Latin America

In an effort to improve the region’s quality of life and integration, the 167th session of the Board of Directors of CAF—development bank of Latin America—approved in Panama City a series of investments totaling $1.32 billion. The event closed with remarks by Panamanian President Laurentino Cortizo Cohen. The institution expects to close the year with a record $13.8 billion in approved loans.

During his speech, President Cortizo ratified his commitment to achieve sustainable development, as well as regional integration and trust among the countries of the region. “The development we aspire to needs allies like CAF,” Cortizo said. “This bank must be the effective arm in Latin America’s social health. I am convinced that, just as we believe in CAF as an ally, CAF also believes in our country and the strategy we represent.”

Meanwhile, CAF executive president Luis Carranza emphasized that the approved initiatives—which focus on cities, energy, road integration and water projects—will have a significant impact on the well-being of Latin Americans. “CAF is committed to Latin America’s development, not as a bank, but as a partner to countries, by supporting projects such as those approved today, for energy infrastructure and integration works, aqueducts and comprehensive interventions in cities, which help foster better living conditions and reduce inequality in the region,” Carranza said.

In the case of Brazil, operations were approved for sub-national authorities to improve infrastructure, mobility and climate resilience in the State of Alagoas and the municipality of Sao Bernardo do Campo, as well as to promote economic and social development in the southern region of the country. Colombia will receive financing for the plan to expand and revamp the regional power grid infrastructure operated by Santander Power Company E.S.P. (ESSA), covering the Department of Santander and surrounding areas.

Mexico will receive a loan to help implement the national regulatory improvement strategy. In Paraguay, funding will go to improving and modernizing the country’s power grid, benefiting some 6.8 million residents, and the project to build access to the second international bridge over the Paraná River, which is expected to boost Paraguay’s productivity and tourism.

The Dominican Republic will receive partial financing for its project to expand the eastern aqueduct of Santo Domingo which aims to streamline the water system in North and East Santo Domingo. For Uruguay, financing was approved for the construction of the Casupá stream dam in the Santa Lucia River basin, which will help ensure long-term water supply of 2 million residents in the Greater Montevideo.

The 167th session held in Panama also approved the second stage of the Pre-Investment Program for the Water Sector, to improve the quality of studies and reduce project cycle times through the financing of actions and pre-investment activities required to promote their investment and execution phases.