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IDB and AFD commit to co-finance USD 1 bn for development in LAC

In this new agreement, the IDB and AFD commit to further mobilize both knowledge and financial resources for projects promoting sustainable development and poverty alleviation.


IDB latin america and caribbean
Updated: 12-10-2018 15:10 IST
IDB and AFD commit to co-finance USD 1 bn for development in LAC

This agreement effectively builds upon the IDB-AFD partnership formalized in 2015. (Image Credit: Pixabay)

The Inter-American Development Bank (IDB) President Luis Alberto Moreno and Agence Française de Développement (AFD) CEO Rémy Rioux signed a partnership framework agreement to enhance co-financing of projects which sets the target to reach at least US$1 billion co-financing over the next three years. This agreement effectively builds upon the IDB-AFD partnership formalized in 2015.

In this new agreement, the IDB and AFD commit to further mobilize both knowledge and financial resources for projects promoting sustainable development and poverty alleviation. It aims to deepen cooperation related to global public goods and efforts to fight climate change, which are joint strategic priorities for both institutions.

Building upon an active track record of co-financing projects, the partners intend to help LAC countries translate climate objectives into national and regional planning strategies and implement them at the sector level in pursuit of the Sustainable Development Goals and the objectives of the Paris Climate Agreement.

The signing follows a public announcement by French President Emmanuel Macron pledging to increase France's public development assistance from 0.38% of GDP in 2016 to 0.55% by the end of 2022, deepening the scope of financing opportunities in LAC in partnership with the IDB.

"The partnership with IDB is crucial for us to support the region in its efforts to transition to a low carbon and resilient economy, in line with the Paris Climate Agreement. IDB and AFD teams have done great work over the last couple of years to scale up our cooperation on the ground. I am glad today to open a new phase of this collaboration alongside President Moreno," said AFD CEO, Rémy Rioux.

IDB President Luis Alberto Moreno: "The IDB wants to build strategic alliances with French development actors such as the AFD Group, which has become one of our most active co-financing partners. This agreement will strengthen our collective ability to create innovative financial instruments and to do pioneering work in fighting climate change and other challenges Latin America and the Caribbean are facing."

The agreement was formalized in the context of the 2018 International Monetary Fund and World Bank Meetings in Bali.


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