WASHINGTON — The Inter-American Development Bank (IDB) approved a $50 million financing package to support Chile’s efforts to revitalize emblematic heritage neighborhoods and promote safe, inclusive urban infrastructure. The package includes a $45 million loan and a $5 million non-reimbursable grant from the IDB’s Grant Facility, aimed at supporting countries experiencing large and sudden intraregional migration inflows.
The program will support the safe and inclusive revitalization and management of emblematic heritage neighborhoods by enhancing municipalities' technical and management capacities, supporting municipalities in project planning, interagency coordination, and inclusive governance.
It will promote economic reactivation and sociocultural integration in these neighborhoods, benefiting local and migrant populations by financing community-based initiatives and integration programs. These migrant inclusion efforts are specifically supported by the program’s non-reimbursable grant. Chile is one of the countries in the region that has received the largest inflow of migrants over the last 10 years.
The program will also rehabilitate heritage and urban infrastructure, considering migration, environment, security, and social aspects, investing in safe, accessible, resilient public spaces and heritage assets.
The initiative will directly benefit over 124,000 residents and business owners across 18 neighborhoods, including nearly 21,000 migrants. Indirectly, it is expected to impact more than 4.1 million people living or working in these areas.
This is Chile’s second operation supported by the IDB’s Grant Facility for migration, reinforcing the country’s commitment to inclusive urban policies that respond to demographic shifts and social challenges.
The $45 million IDB loan has a 25-year repayment term, a 5.5-year grace period, and an interest rate based on SOFR.
About the IDB Group
The Inter-American Development Bank Group (IDB Group) is the leading source of financing and knowledge for improving lives in Latin America and the Caribbean. It comprises the IDB, which works with the region’s public sector and enables the private sector; IDB Invest, which directly supports private companies and projects; and IDB Lab, which spurs entrepreneurial innovation.