The Daily Journal. — The Development Bank of Latin America and the Caribbean (CAF) has announced the creation of the Venezuela Recovery and Reconstruction Fund, a trust designed to gather resources from multiple sectors and channel them toward addressing the crisis caused by the June 24 earthquakes.
The initiative complements an earlier direct donation of $300,000, which the multilateral financial institution approved to purchase emergency humanitarian supplies.
According to an official statement, the fund will bring together financial contributions under a transparent oversight framework.
“The Fund will receive contributions from governments, international organizations, companies, foundations, private individuals, and other partners, manage them under a common framework of administration and accountability, and direct them toward the initiatives that the Government of Venezuela defines and prioritizes. In this way, the Fund seeks to facilitate a coordinated response, prevent fragmented efforts, and accelerate the delivery of resources to the affected areas.”
Initial contribution of $1 million
To activate the mechanism immediately, CAF will provide its own contingency resources.
“As an initial contribution, CAF will provide a $1 million seed investment to activate the mechanism and finance the first priority initiatives,” the organization stated.
CAF also confirmed that it will not charge administrative or operational fees, ensuring that every dollar contributed reaches projects on the ground.
CAF Executive President Sergio Díaz-Granados highlighted the institution’s longstanding relationship with Venezuela, one of the bank’s founding members and the country that hosts its headquarters.
“Nature responds with acts of destruction, but humanity responds with acts of solidarity, and Venezuela needs us today more than ever. Venezuela is a founding member and the headquarters of CAF. For that reason, we are launching this Reconstruction Fund, an agile and transparent mechanism that welcomes contributions from governments and the private sector. Together, our contributions can support an effective response. Our commitment extends beyond the emergency. We will stand with the Venezuelan people throughout the entire recovery and reconstruction process,” Díaz-Granados said.
The organization explained that it will allocate the fund’s resources in three progressive stages. The first phase will prioritize basic humanitarian assistance. The second phase will focus on restoring critical services, including healthcare, water and sanitation, energy, education, and connectivity. The final phase will support the recovery of livelihoods for the civilian population.
