CAF to Provide US$9 Billion to Colombia for Projects Between 2026 and 2030
The new government that will be headed by Abelardo de la Espriella between 2026 and 2030 continues to gain support. The Development Bank of Latin America and the Caribbean (CAF) announced this Friday a US$9 billion financing framework for Colombia.
Colombia is a founding member country of CAF and has maintained an uninterrupted relationship of cooperation and financing with the institution for more than five decades. During these years, CAF has supported projects of national and regional scope in infrastructure, water and sanitation, urban and rural mobility, education, health, productive development, environmental sustainability, institutional strengthening, and green financing.
A more prosperous, equitable, and sustainable future for Colombians
The US$9 billion will be focused on four major pillars: energy security, infrastructure for productivity, social inclusion, and territorial strengthening.
Sergio Diaz-Granados, President of CAF, said the bank will support initiatives to expand the country’s energy capacity, promote infrastructure projects, improve services such as health and education, and strengthen the investment capacity of municipalities and departmental governments.
“Colombia is a country with enormous productive, energy, environmental, and human potential. At CAF, we firmly believe in that potential, and for that reason we are working together with the new government to transform it into real development opportunities,” Diaz-Granados said.
“We are making available to Colombia our financial capacity, our experience in project structuring, and our technical expertise to respond to the country’s needs and contribute to a more prosperous, equitable, and sustainable future for all Colombians,” he pledged.
As part of the package, Diaz-Granados announced US$1.2 billion earmarked to finance local government projects. The objective is to strengthen regional development through loans and technical assistance for the structuring of initiatives.
The President of CAF made the announcement during a meeting at EIA University in Envigado, Antioquia, attended by President-elect De la Espriella, Vice President-elect Jose Manuel Restrepo, and local authorities, business leaders, and representatives of different economic sectors.
Doing in four years what was not done in eight
“We are going to do in four years what we did in eight,” Diaz-Granados said, adding that the US$9 billion will be the “financing floor” with which the institution expects to support the priorities of the incoming De la Espriella administration.
The executive explained that the amount represents a leap forward in the relationship between the bank and the country, noting that it is equivalent to twice the resources CAF disbursed in Colombia during the past eight years.
He also warned that the execution of those resources will be determined by criteria of fiscal discipline and transparency. “There will be no room for waste, improvisation, or corruption. Every dollar will end up being transformed into roads, energy, drinking water, jobs, and opportunities for our people,” he emphasized.
President-elect De la Espriella, for his part, described the agreement as a demonstration of international confidence in Colombia and said the resources will make it possible to carry out the main priorities of his administration.
“This agreement with CAF is not merely a financial commitment. It is a demonstration of confidence in Colombia’s future. This support will allow us to move forward with our development priorities and turn every dollar into public works, infrastructure, energy, drinking water, jobs, and opportunities that improve Colombians’ quality of life,” he said.
The four sectors of the program
Based on this shared vision, the support program is organized around four priority sectors that align the priorities of the new Government with CAF’s technical and financial capabilities:
1. Energy security: A modern, reliable, and diversified system that responds to the needs of households and businesses, incorporates new technologies, and makes responsible use of natural resources.
This effort may include the development of non-conventional renewable energy projects, the modernization and expansion of transmission and distribution networks, and the development of new storage solutions that guarantee the stability of the system.
2. Infrastructure for productivity: Through transportation, logistics, and digital connectivity projects that integrate territories, reduce costs, expand access to markets, and connect the most remote regions with national and international economic dynamics.
This pillar seeks to enhance the country’s competitiveness through the development of strategic infrastructure and transportation and logistics corridors—including road, multimodal, rail, river transport, and urban mobility projects—that integrate the national territory, facilitate domestic and foreign trade, and significantly reduce logistics costs.
3. Prosperity and social inclusion: So that Colombians can live in safe environments, have access to quality essential services, and find opportunities to develop their potential—especially communities that face the greatest social gaps.
Under this pillar, support will be provided for strengthening public security, peaceful coexistence, and justice institutions, together with investments in health, education, skills development, and access to essential services such as water and sanitation and decent housing, thereby expanding opportunities and strengthening social inclusion.
4. Territorial presence and strengthening: So that departments, districts, and municipalities can lead their own development by combining financing, technical assistance, and knowledge.
The ultimate objective of this work is to improve people’s lives. One of the main focuses of this pillar is to reduce the historical gaps among territories and direct investment to where the needs are greatest.