CABEI and KFW launch Green Recovery Program in Central America to increase resilience of vulnerable communities

Tegucigalpa, November 10^th, 2022. - To finance operations focused on the sustainable economic reactivation of both the public and private sectors in Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, the Dominican Republic and Belize, the Central American Bank for Economic Integration (CABEI) and the German Financial Cooperation, through the KfW, signed an agreement for the implementation of the "Green Recovery Program in Central America" for EUR250.0 million.

The initiative aims to support economic activities with a focus on mitigation, adaptation and improvement of resilience to climate change in vulnerable communities in the region. Potential investments to be financed under this program include renewable energy and energy efficiency infrastructure, electric mobility, as well as resilient and low-carbon public infrastructure.

"This Program with our strategic ally, the KfW, demonstrates the firm support of the German Government to the region, since with its support we are unifying efforts to reactivate the economy in a sustainable manner and support sectors of great relevance such as micro, small and medium-sized enterprises affected by COVID-19, as well as the population in general and the environment with investments that will help improve resilience to climate change," highlighted CABEI Executive President, Dr. Dante Mossi.

Likewise, Mr. Jens Janik, Ambassador of the Federal Republic of Germany in Honduras, stated that "CABEI is a key partner for German cooperation in the region and the broad portfolio of different programs shows the important cooperation in different sectors. Now, with the Green Recovery Program in Central America, Germany is supporting the region in the reactivation of economic activities. The sustainable revival of the economy is particularly relevant, since in times of crisis the fight against climate change has taken a back seat.”

CABEI and the KfW's Director for Latin America and the Caribbean, Claudia Arce, said, "CABEI and KfW have a close relationship and we have worked hand in hand during the Pandemic. The EUR 250 million loan is KfW's largest single commitment to CABEI to date and with this Green Recovery Program we reaffirm our commitment to sustainable and resilient development in the region. We are pleased to have CABEI as a strategic partner to channel investments in areas such as infrastructure that improve climate resilience, sustainable mobility or renewable energy. With our loan, we aim to continue contributing to economic reactivation, creating new jobs and supporting the transition to a low-carbon economy.”

Another important component is that it could benefit people interested in applying for loans to protect their homes against climate change, purchase renewable energy generation equipment, as well as low-emission means of transportation.

The initiative also includes non-reimbursable resources of EUR 4.5 million to strengthen the preparation of climate change mitigation and adaptation projects and institutionalize climate knowledge and tools at CABEI.

With the signing, CABEI and the KfW reaffirm their commitment to continue developing actions that contribute to a green recovery in Central America and thus boost the region's economic growth. Since 2002, the German Financial Cooperation has channeled US$961.2 million in resources to the region for the execution of projects aimed at sustainable development.