New contribution of the European Commission and AFD to CAF to promote sustainable cities in Latin America -

With the purpose of strengthening the development of sustainable cities in Latin America, the European Commission and the French Development Agency (AFD, for its acronym in French), granted CAF, Development Bank of Latin America, € 4.7 million for technical assistance initiatives in the region, aimed at improving the quality of urban projects for the mitigation of greenhouse gas emissions, and adaptation to the impacts of climate change in the cities of the region. 

The main objective of this initiative is to finance the identification, feasibility, and impact technical studies of projects in Latin America and the Caribbean, carried out by national, regional, departmental and municipal governments in the energy sector, urban renewal, housing, urban transportation, potable water, and residual waters, among others.  

The signature of the program was in charge of Hugo Sarmiento, CAF's Vice-President of Finances, and Hervé Conan, the AFD's Director of the Department of Latin America and the Caribbean. Through the Latin America Investment Facility (LAIF) initiative, the European Commission will finance € 4,2 million during the 2016 - 2020 period. The LAIF resources will complement the € 500,000 assigned by the AFD to the trust fund managed by CAF in 2015. 

Sarmiento stated, "This agreement will enable CAF to use the resources of the European Union for the benefit of climate change projects in Latin America, and will strengthen the excellent relationship with the AFD". 

The program is part of a wider cooperation scheme between the parties, aimed at: (i) strengthening CAF's methodology in the face of climate change, as well as the promotion of its program "Cities with a Future";(ii) sensitization regarding adaptation to the new climate conditions among the local governments of Latin America, and strengthening of their capacities and knowledge in the definition and implementation of  the paths toward development which are climate resistant and low in carbon emissions; (iii) identification of urban projects that are environmentally friendly in Latin America.