At its 56th board meeting, held in Venezuela, CAF’s directors approved USD 1.086 billion for major projects in Brazil, Colombia, Uruguay, and Chile, a move that reinforces the institution’s growing role as the region’s climate financier of last resort.
The new financing round, which combines infrastructure modernisation with climate adaptation, aims to drive long-term development while helping member states confront droughts, flooding, and rising emissions.
Building the region’s next generation of infrastructure
In Brazil, CAF approved USD 96 million for the Urban Infrastructure and Development Program in Cabo de Santo Agostinho, Pernambuco. The initiative targets more than 200,000 residents, focusing on public transit, sanitation, and flood resilience. It’s a test case for how middle-income cities can adapt to extreme weather while maintaining inclusive growth.
In Colombia, two major projects will reshape the country’s transport landscape. CAF approved USD 300 million for the Program to Support Railway Reactivation, Sustainable Mobility, and Logistics Efficiency, reviving the long-neglected national railway and cutting logistics costs across key corridors. The bank also increased funding for Aerocivil by USD 60 million, bringing the total to USD 300 million, to modernise airport infrastructure and deploy advanced air navigation technologies.
Both projects underscore Colombia’s dual challenge: reducing carbon emissions while maintaining connectivity in a sprawling, mountainous geography.
Dams, droughts, and water security
In Uruguay, CAF will invest USD 130 million in the construction of the Casupá Dam within the Santa Lucía River Basin. The project is designed to guarantee safe water supply to two million people in the Montevideo Metropolitan Area through 2045, a timeline that reflects the urgency of regional water stress.
With a storage capacity of 118 cubic hectometres, Casupá will help Uruguay secure drinking water even in years of severe drought. It’s one of the largest water infrastructure projects financed by CAF in the Southern Cone.
Empowering small businesses and green innovation
In Chile, CAF expanded its revolving credit line to Banco Estado by USD 100 million, raising the total to USD 300 million. The goal: channel affordable financing to small and medium-sized enterprises — particularly those led by women — and to scale green initiatives such as energy efficiency, renewable housing, and low-carbon innovation.
The bigger picture
For CAF, this latest round of financing signals more than just project approval. It’s part of a broader effort to redefine Latin America’s development model around resilience, equity, and sustainability, amid global pressure to deliver on climate targets.
With over a billion dollars now flowing into infrastructure designed for a hotter, drier, and more volatile planet, CAF is positioning itself not only as a regional lender, but as a stabilising force in an era when the intersection of climate and development has become impossible to ignore.