The loan is intended to refinance infrastructure measures in the sectors water/sanitation, energy, telecommunications and transport. The loan to CAF will benefit the five Andean countries of Peru, Bolivia, Ecuador, Colombia and Venezuela.
“The creation of new and the rehabilitation of existing infrastructure will make an important contribution to regional integration, to enhancing economic growth and, ultimately, to improving the living conditions of the local population,” says Wolfgang Kroh, member of KfW’s board of managing directors.
For over 40 years KfW has been promoting investments and structural reforms in developing countries from budget funds on behalf of the German federal government. The bank also provides additional capital market funds for development projects in developing countries on its own risk.