US$30 million granted for Social Development Program

A US$30 million loan was today granted to the Republic of Venezuela to partially finance the Social Investment and Development Program (Proindes), whose executing agency is the Venezuelan Social Investment Fund (FONVIS).

The loan agreement was signed today in CAF headquarters by the ministers of Finance, Maritza Izaguirre, and Family, Carlos Alitmari, and by CAF President & CEO Enrique García who said the operation’s high social content would improve the quality of life of the low-income sectors of the Venezuelan population, as well as supporting the decentralization process and more equitable access to finance.

In its management policies, CAF grants great importance to financing projects that mitigate poverty in urban and rural areas, especially when they contribute to the participation of neglected sectors in social development processes.

The objective of Proindes is to maintain a financial transfer mechanism for projects promoted by state, municipal governments and social organizations. Its three main objectives are to expand access to public services by the low-income population; back the rationalization efforts of social investment; and foster cooperation between public and private sectors in the areas of production, administration and provision of basic services.

As a result, the CAF loan will be used to finance projects for infrastructure for health, education, environmental health, community amenities, road systems, electrification and urban development; technical assistance and institutional strengthening; and studies and research to help FONVIS, as executing agency attached to the Ministry of the Family, adapt its plans to the needs of the population and state and local governments.

In this respect, one of the innovative elements of Proindes is to implement a methodology to allocate differentiated funds, which consists of granting finance based on the technical and financial characteristics and conditions of each state and local government in the country, in an effort to increase participation and equitable access to multilateral financing.