Germany's State-run Development Bank (KfW) and the Development Bank of Latin America (CAF) have signed an agreement whereby KfW will grant two green credit lines to finance CAF water and sanitation projects in Peru and other Latin American countries.
In addition, the funding will be used to strengthen sustainable public transport systems that help countries mitigate the climate change impact in the region.
The first credit line of US$159 million will finance water and sanitation projects, while the second of US$118 million will fund urban transport projects across the region.
Director of CAF's Direction of Financial Resources Felix Bergel and KfW representative Markus Rühling put their signatures on the deal at CAF's facilities in Lima.
"These credit lines will allow us to accomplish our mission of promoting sustainable development in Latin America, including the best environmental management in transport, water and sanitation," Bergel was quoted as saying.
German cooperation
For his part, the KfW representative said the cooperation with CAF has become a very important pillar of Germany's financial cooperation with Latin America.
"These two credit lines are based on the shared interest of promoting development projects to reduce pollution and health risks facing the population," Rühling stated.
(END) MDV/RMB/MVB
Published: 12/12/2017