NDF C27 Central America: Climate Proofing of Infrastructure

Central America
Climate Proofing and Review of Infrastructure Investments

Ref: NDF C27

EUR 1.5 million

Project period: 2011-2013

Partner agency: Inter-American Development Bank

Objectives
The Structured and Corporate Finance Department (SCF) is responsible for Inter-American Development Bank’s (IDB) non-sovereign guaranteed investments in nearly all economic sectors in Latin America and the Caribbean. The clients can be public or private sector enterprises engaged in activities in e.g. manufacturing, infrastructure, extractive industries, energy, and other productive activities. SCF currently has a portfolio of over 80 projects to which SCF has provided almost USD 4 billion in financing. Projects include financing for the construction of new assets, such as toll roads, airports, water treatment plants, transmission lines and hotels. SCF’s project portfolio, built during past years offers today many opportunities to introduce climate friendly improvements to better correspond to current thinking, energy pricing and technological possibilities

The objective of this project is to review the energy use of the existing and planned SCF loan portfolio and propose actions to make it more climate-friendly. SCF will then seek financing for the implementation of such actions.

Funds from NDF would be used to finance feasibility studies in Central American countries to identify opportunities for climate-friendly improvements among SCF’s clientele. With concrete recommendations of the feasibility studies, SCF could engage in more meaningful discussions with its clients and would look to catalyze funds to finance the resulting projects.

Financing
Total cost of the study will be EUR 2.0 million, of which NDF will provide EUR 1.5 million, and SCF/IDB EUR 0.5 million.

NDF Contact
Country Program Manager Hannu Eerola
Telephone +358 10 618 002