Joint effort with KfW in favor of Latin America

"The Agreement – García said – reflects CAF’s interest in strengthening the capacities and opportunities of the two institutions in favor of mitigating the effects of climate change in Latin America, and allowing us to play an important catalytic role by contributing funds, products and experiences from other regions."

Norbert Kloppenburg, member of the KfW Board, said, "the agreement underlines the good cooperation we have always had and the willingness of our institutions to cooperate even more closely in the important areas of environmental protection and climate."

Under the agreement, the two institutions will explore joint cooperation mechanisms to preserve the environment, respond to infrastructure needs and support the microfinance sector in the shareholder countries, mainly through financing for mass transit and energy projects – especially renewable and efficient energy – and sanitation projects. The cooperation will be provided through co-financing, financing, technical cooperation and other financial mechanisms.

Relations between CAF and KfW began in 1977 when a first loan agreement was signed. Since then, CAF has been granted several credit facilities and the two institutions have carried out joint activities with the aim of financing infrastructure projects in Latin America. In recent years funds have been funneled into operations in the environmental field, specifically renewable and efficient energy projects.

The signing took place during President Garcia’s visit to Berlin where he took part in the seminar "Instruments and Policies to Mobilize International Green Energy Investment," organized by KfW. His presentation outlined CAF’s efforts on environmental issues, and he recommended action plans to channel innovative funding into various projects associated with climate change in Latin America.