Description
LACIF operates through blending, an instrument that catalyses financing by strategically using a limited amount of grants to mobilise loans, equity and guarantees from financial institutions, as well as private sector investment.
LACIF offers different financing modalities which can be combined:
- Technical assistance: Tailor-made to meet specific project needs, this helps ensure quality, efficiency and the long-term sustainability of the projects.
- Investment grants: These are used to finance specific components of a project costs or to mitigate risks of a financial structure (guarantee, equity).
All these blended resources are invested into key sectors for the achievement of the Sustainable Development Goals and the implementation of the Global Gateway strategy.
LACIF has three main interconnected and mutually reinforcing strategic objectives in line with the Global Gateway:
- Improving the quality and sustainability of infrastructure in Latin America and the Caribbean, including energy efficiency, renewable energy systems, sustainable transport and communication networks
- Increasing environmental protection and supporting climate change adaptation and mitigation
- Promoting equitable and sustainable socio-economic development through improving infrastructure for social services and support to SMEs
Beyond leveraging financial resources from different actors, blending ensures enhanced impact and project quality. It improves coordination between European and non-European development partners.
Actions
Since 2010, 110 projects (82 bilateral and 28 multi-country) have been launched in coordination with European and international financial institutions, representing a total investment of approximately EUR 20 billion with a LACIF contribution of almost EUR 856 million. This means that for each euro provided by the European Union, an average of EUR 23 of investment was committed by its partners.
- 26 LACIF projects are located in the seven lowest income countries in Latin America – Bolivia, Cuba, Ecuador, El Salvador, Honduras, Nicaragua and Paraguay.
- LACIF supports innovative initiatives such as LAGreen Fund, the first Green Bonds Fund for Latin America; the Global Gateway Renewable Hydrogen Funding Platform in Chile; and the Caribbean Sustainable Water Management and Clean Oceans Programme.
- LACIF is a flexible tool that can be adapted to the needs of partner countries, supporting national priorities and tackling global challenges ranging from access to drinking water and sanitation, to bio-trade development, digitalisation, the sustainable supply of critical minerals, or sustainable urban mobility. See all LACIF projects below for detailed information.