The Daily Journal.- The Board of Directors of CAF — Development Bank of Latin America and the Caribbean — approved a $3.5 billion financing package comprising 15 operations across 10 countries in the region, with funds targeting infrastructure, sustainable mobility, energy transition, social development and climate action.
Venezuela does not appear among the direct beneficiaries of the operations included in the new package, despite Caracas serving as the institution’s headquarters. CAF concentrated the resources in Bolivia, Brazil, Chile, Colombia, Ecuador, Honduras and Uruguay, along with a regional operation involving the Latin American Foreign Trade Bank (Bladex).
CAF said the new operations aim to “promote sustainable development and regional integration,” with a portfolio that places significant emphasis on climate action and resilience to natural disasters.
Colombia accounts for several of the largest operations. They include up to $300 million for the Medellín Metro investment plan, $250 million for strategic projects under Medellín’s Development Plan and $200 million for the La Dorada-Chiriguaná railway corridor.
The country will also receive $350 million for climate action, biodiversity and the blue economy. According to CAF, the operation seeks to strengthen “climate change adaptation and mitigation, biodiversity protection and the development of a sustainable blue economy.”
Brazil will receive up to $500 million to modernize the power grid in Minas Gerais, while Chile will gain access to an expansion of up to $400 million in its credit line with BancoEstado.
Argentina will receive $305 million for infrastructure projects, including $200 million to modernize and rehabilitate the road network in San Juan province and $105 million to improve Line B of the Buenos Aires subway system.
Bolivia will receive $224 million to restart strategic road projects, Ecuador will obtain $150 million for education, sports and cultural projects, Honduras will receive up to $177 million to strengthen its electricity system, and Uruguay will have access to up to $120 million to finance investments by the National Administration of Fuels, Alcohol and Portland (ANCAP).
The regional operation includes an increase of up to $250 million in Bladex’s credit line to support intraregional trade.
$1 billion to address El Niño
Alongside the $3.5 billion package, CAF made up to $1 billion available to Latin American and Caribbean countries to address emergencies related to the 2026-2027 El Niño phenomenon.
The institution warned that El Niño could intensify extreme events such as floods, droughts and wildfires, with particularly severe effects on vulnerable populations.
CAF estimates that the impacts associated with the phenomenon could generate losses equivalent to up to 2% of regional GDP and affect agricultural production and the incomes of millions of people.
Against this backdrop, the bank said the fund aims to strengthen countries’ ability to respond to emergencies and accelerate recovery in affected areas.
CAF has placed climate adaptation and disaster risk management among its financing priorities. The new package reflects that strategy through both the $350 million operation for Colombia and the resources available to address El Niño’s effects.
