Economic integration

Central American Bank for Economic Integration and European Union sign € 4.9 million agreement to prepare climate change projects for the benefit of the Central American region

Tegucigalpa, December 16, 2021.- The strategic alliance between the Central American Bank for Economic Integration (CABEI) and the European Union (EU) continues to have positive impacts for the region. On this occasion, a non-refundable financial contribution agreement was signed for an amount of 4.9 million euros to develop technical assistance for the preparation of initiatives contributing to the management of natural disasters and adaptation to the climate change.

The resources will be part of the Climate Change Investment Project Preparation Fund (CCF) established by CABEI in 2020 and come from the European Union’s first blending project led by CABEI, which has extensive experience as a co -implementer of LAIF facility projects with KfW. .

Thanks to the technical assistance provided, a portfolio of initiatives will be created for the benefit of the Bank’s partner countries; In addition, projects with a strong gender focus will be identified from the design phase, thus increasing the participation of women in the development of climate-focused projects.

“We are delighted with this new agreement with the EU, because together we will continue to ensure the well-being of the region and as CABEI we will continue to work to maintain our position as the Green Bank of Central America. Forty-one percent of our approvals over the past seven years have been directed to financing climate change related operations and we are currently the primary entity channeling the resources of the Green Climate Fund (GCF), having approved four operations for an amount of US $ 525.2 million ”, said CABEI Executive Chairman Dr Dante Mossi.

“We are particularly pleased with this new collaboration with CABEI, which will serve to strengthen a key alliance in Central America. CABEI has extensive experience in the implementation of European Union funds and is a partner that has demonstrated its strong presence and strong network in the With this new agreement, we will generate a portfolio of strong and resilient projects that will benefit to a region particularly vulnerable to climate change ”, said Jolita Butkeviciene, Director for Latin America and the Caribbean of the European Union’s Directorate General for International Partnerships.

To date, the historic alliance between the European Union and CABEI has channeled non-repayable resources administered by CABEI for US $ 99.59 million (€ 88 million). Likewise, the EU has contributed 113.5 million US dollars (100 million euros) to the co-financing of CABEI operations.

The FCC was established as part of the Central American Resilient Reconstruction Program to provide resources to finance projects that address and prevent natural disasters in order to adapt to the effects of climate change and to implement measures to short, medium and long term.