IDB Grants $50M Loan to Improve Early Childhood Services for Vulnerable Children in Peru

The funding will directly support the modernization and expansion of the National Cuna Más Program, Peru’s flagship initiative dedicated to improving early childhood care.

The Inter-American Development Bank (IDB) has approved a $50 million loan to significantly enhance the quality, reach, and sustainability of early childhood development (ECD) services for children under 36 months living in Peru’s poorest communities. The investment marks a major step toward expanding equitable access to early learning, nutrition, and care services—critical foundations for lifelong well-being.

Strengthening the National Cuna Más Program

The funding will directly support the modernization and expansion of the National Cuna Más Program, Peru’s flagship initiative dedicated to improving early childhood care. The program’s enhancement will include:

• Strengthening governance and management systems

• Upgrading information systems and digital infrastructure

• Improving training for staff and caregivers

• Ensuring stronger operational capacity and consistent service quality

These improvements aim to create a more effective, efficient, and culturally responsive early childhood platform capable of responding to diverse needs across Peru.

Building Sustainable, Climate-Resilient Child Care Infrastructure

A central component of the initiative is the improvement of facilities within the Comprehensive Child Care Centers. The project will:

• Construct 25 new centers using bioclimatic design

• Renovate 28 existing centers with energy-efficient materials

• Prioritize water-efficient systems and low-impact construction

• Incorporate climate-resilient features adapted to local environments

These upgrades will help Peru offer durable, sustainable ECD services, reduce environmental impacts, and ensure that infrastructure remains safe amid increasing climate risks.

Reaching the Most Vulnerable Children Across Peru

The program is expected to directly benefit more than 320,000 children under age three across:

• 522 urban municipalities, and

• 1,240 rural or remote areas, including Amazonian regions

Of these children, over 65,000 speak or are learning an Indigenous language, underscoring the vital importance of culturally relevant services and community-led engagement.

The initiative will also benefit:

• Families and caregivers

• Thousands of staff members in the Cuna Más Program

• Remote and Indigenous communities historically underserved by social services

Aligned with Amazonia Forever and Inclusive Development Goals

This investment aligns with the IDB’s Amazonia Forever program, particularly its goals of:

• Promoting sustainable infrastructure

• Improving service quality for Amazon-region populations

• Embedding cultural relevance and Indigenous participation in program design

By prioritizing both environmental sustainability and social inclusion, the program supports long-term resilience and equitable development in regions facing acute poverty and infrastructure gaps.

Loan Terms

The approved IDB loan includes:

• 17-year repayment period

• 6.5-year grace period

• Interest rate based on the Secured Overnight Financing Rate (SOFR)

These conditions aim to provide Peru with flexible, sustainable financing as it invests in one of its most critical priorities: the development of its youngest generation.