The Central American Bank for Economic Integration (CABEI) said it signed a €250 million ($259 million) loan with German development bank KfW to finance green projects in Central America and the Caribbean in the wake of the COVID-19 pandemic.
“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,” CABEI said in a press release on Thursday.
CABEI will offer financing to projects in Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, the Dominican Republic and Belize as part of its Green Recovery Program, it added.
According to CABEI CEO Dante Mossi, part of the funding will be used to finance small and medium-sized enterprises (SMEs) affected by the COVID-19 pandemic and also cover investments related to climate change.
“The initiative also includes non-reimbursable resources of €4.5 million to strengthen the preparation of climate change mitigation and adaptation projects and institutionalize climate knowledge and tools,” CABEI said.