Green Climate Fund approves US$174.3 million to CABEI to finance Central American Dry Corridor Program


Initiative will increase the resilience to climate change of more than 2.4 million people.

Tegucigalpa, October 07, 2021.-The Green Climate Fund (GCF) approved the Central American Dry Corridor Program financing proposal presented by the Central American Bank for Economic Integration (CABEI) for US$174.3 million to increase the region's capacity to adapt to the effects of climate change.

The resources will benefit 2.4 million people through access to technical assistance and credit for the implementation of climate change adaptation practices.

"This initiative is part of the US$2,513.0 million Central American Resilient Reconstruction Program approved by CABEI in November 2020 in response to the effects of hurricanes ETA and IOTA and whose objective is to provide resources to the countries of the SICA region for the financing of projects that confront and prevent natural disasters in order to adapt to the effects of climate change and implement short, medium and long-term measures," highlighted CABEI Executive President Dr. Dante Mossi.

Of the total amount approved by the GCF, US$84.3 million will be grants to implement Ecosystem-Based Adaptation (EbA) measures; US$60.0 million will be reimbursable resources channeled through CABEI's allied financial institutions; and US$30.0 million will be partial guarantees to support the loans. In addition, CABEI will channel US$42.8 million through its allied financial institutions and US$51.3 million in in-kind contributions from the partner countries.

Thus, CABEI continues to consolidate its position as the leading financial institution in Central America in mobilizing GCF resources that contribute to climate change mitigation and adaptation, having approved US$526.5 million to date for the execution of four investment operations in the region.