CABEI approves US$2,513.0 million for the Central American Program for Resilient Reconstruction
The program will provide fast-disbursing resources to the countries of the SICA region for the financing of projects for the implementation of climate change adaptation activities.
Santo Domingo December 14th, 2020.- In immediate response to the damage caused by hurricanes ETA and IOTA in the region, the Central American Bank for Economic Integration (CABEI), supports its member countries with the approval of the Central American Program for Resilient Reconstruction for an amount of up to US$2,513.0 million with the objective of increasing the resilience and adaptation of the SICA countries to climate change.
"CABEI, the Green Bank of Central America, recognizes the importance of developing and promoting agile financing mechanisms for adaptation and mitigation to climate change," said CABEI Executive President, Dr. Dante Mossi.
At an immediate level, CABEI will provide emergency aid to countries to assist those affected by the emergency. CABEI will also manage and administer resources from other bilateral and multilateral funders in response to the emergency at no administrative cost.
The Program will include the creation of a Climate Change Investment Project Preparation Fund (FCC), which will provide the countries with technical assistance resources for the creation of a set of priority projects for the adaptation to climate change which will allow to promote public investment for the construction of new resilient road and social infrastructure and resilient agriculture projects, as well as private investment for the construction and restoration of dams, resilient housing, using Public-Private Partnership (PPP) schemes and resources for MIPYME environmental investments.
On the other hand, the issuance of Green and Social Bonds will be promoted in international capital markets and in the Central American region to facilitate the attraction of specialized investors and the mobilization of capital for projects and programs with a high social impact through the issuance of bonds. Finally, the Program will facilitate the exchange of information, knowledge, best practices, replicable schemes, and experiences on the implementation of successful projects and technologies applied to climate change adaptation.
Dr. Mossi expressed that CABEI will intensify funding and cooperation efforts with important climate finance mechanisms such as the Green Climate Fund (GCF) in order to identify and prepare projects that will be highlighted as a national priority as part of the countries' agenda in their efforts and strategies to combat the adverse effects of climate change.
CABEI currently has 11 projects with the GCF for approximately US$800 million that include funding proposals, technical assistance, and other cooperation mechanisms that we will promote so that they can be approved and implemented in the short term for the countries' benefit.