WASHINGTON, December 14, 2017— Green growth and the development of the Pacific zone in Colombia are the main objectives of two loans totaling US$ 541.9 million approved today by the World Bank Board of Directors.
“This credit operation demonstrates the effort Colombia has made in recent years to consolidate a sustainable, environmentally-responsible economic development model that is resilient to the effects of climate change. The World Bank’s support through this credit program was crucial for organizing our work agenda with a view to fulfilling our Paris Agreement commitments, among others,” said Mauricio Cárdenas, Colombia’s Minister of Finance and Public Credit.
The US$500 million Loan for Sustainable Development and Green Growth in Colombia will promote policies to stimulate green growth in the transport, energy, environmental health and natural resource sectors, in addition to improving and protecting environmental quality.
This development policy financing (DPF) will contribute to a series of reforms associated with the implementation of the green-growth strategy of Colombia’s National Development Plan (2014-2018). It is also designed to support the budget program of the Colombian government and create financing options for disaster risk management.
With this loan, the World Bank will contribute to government efforts to develop a new style of economic growth compatible with increased sector efficiency, reduced environmental degradation, and climate change mitigation and adaptation. It will also promote job creation and improved living conditions in rural areas affected by the conflict.
“This project will accelerate reforms to improve living conditions and economic growth in various regions of Colombia. It will also complement and strengthen government actions to mitigate and adapt to climate change,” said Jutta Kern, Interim World Bank Director for Colombia and Mexico.
The implementing agencies for this project will be the Ministry of Finance and Public Credit and the National Planning Department. The loan has a final maturity of twelve years, including a grace period of 11.5 years.
The second operation approved, the US$ 41.9 million Loan to Improve Maritime Transport and Water and Sanitation Service Delivery as part of the Pazcifico Plan, will enhance economic opportunities and the quality of water supply and wastewater services in Colombia’s Pacific South region.
Specifically, it will help improve access, safety and river and estuary transport conditions in the departments of Nariño and Cauca, as well as water and wastewater services in selected municipalities of those departments. The rivers and estuaries are the main and/or only transportation channels for most of the inhabitants in that area of the country. The project will benefit some 147,000 people who live in poverty, were displaced and/or affected by the conflict.
“This US$ 41.9 million credit operation complements the US$400 million credit program that the national government structured together with inhabitants of the Colombian Pacific coast to improve their standard of living. We are convinced that having prioritized investment in potable water, basic sanitation, energy and connectivity, together with the rigorous, decisive support of the multilateral bank, will contribute to the well-being of this region of our country with solutions designed with the highest-quality standards,” said Cárdenas.
The implementing agency for this project will be the National Unit for Disaster Risk Management. The loan has a final maturity of nine years, including a grace period of 5.5 years.
Washington: Marcela Sánchez-Bender, +1 (202) 473-5863, msanchezbender@worldbank.org;
Colombia: Maria Clara Ucrós, + 57-1-3238259, mucros@worldbank.org
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News Release
2018/095/LAC
