CAF approves US$15m loans for climate-change projects in small-island states

The Development Bank of Latin America and the Caribbean (CAF) has approved a financing facility for investment projects in the Caribbean to support economic, social infrastructure and climate-change-adaptation projects.

The facility aims to finance pre-investment projects and promote institutional strengthening through technical support to guarantee the success of the projects.

In a media release on December 6, CAF executive president Sergio Díaz-Granados said the facility is intended to address the economic, social and climate change challenges facing small island developing states (SIDS).

"With this facility, we seek not only to provide financial resources but also to promote the integral development of the Caribbean, responding to the particular challenges of each of the countries.

“Our expansion in the Caribbean is driving us to be even more innovative and flexible to address the urgent needs of SIDS and channel the financing they need."

Projects can access a maximum loan of US$15 million.

CAF said the loan process can also be adapted to adhere to local regulatory and institutional frameworks surrounding procurement, contracting and environmental and social safeguards and compliance in each country.

CAF recently approved US$250 million in financing to support road and educational infrastructure in TT.

On December 5, the bank said in a media release, “The school rehabilitation component will focus on safety, sustainability and gender inclusion and aligns with UN Sustainable Development Goals (SDGs).”

Díaz-Granados added, “CAF has a longstanding, fruitful partnership with TT and we stand ready to support the nation’s thrust towards building resilience, which are key elements of these programmes.

“This new investment will enhance climate-resilient infrastructure and strengthen the teaching of Spanish as a foreign language. We are confident this will lay the foundation for a more robust education system that prepares students to be global citizens.”