12 October 2012: The Latin American Development Bank (CAF) and the German Development Bank (KfW) signed an agreement for a US$100 million KfW credit line for CAF-financed projects in Latin America’s water and sanitation sector. The agreement was signed on 12 October 2012, in Tokyo, Japan, by CAF CEO Enrique Garcia and KfW CEO Stephan Opitz.

The agreement will cover lending for the water and sanitation sector under CAF’s sustainable development agenda, in four areas: management and watershed protection; irrigation and agricultural development; drainage and flood control; and water supply and sanitation. CAF’s stated goal is help its 16 Latin American and Caribbean (LAC) member countries achieve universal access to both water and sanitation. CAF’s 16 LAC member countries are Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Jamaica, Mexico, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay and Venezuela. Portugal and Spain are also CAF member countries.

During the signing ceremony, Garcia emphasized CAF’s commitment to lending in the sector, citing US$2 billion in such lending during the 2007-2011 period, and CAF’s relationship with KfW since 1977, particularly the recent priority given in their cooperation to projects involving climate change, renewable energy and energy efficiency. [CAF Press Release]