Funds will help speed up country’s sustainable economic recovery
BARRANQUILLA, Colombia - At its 2021 Annual Meeting, the Inter-American Development Bank (IDB) signed a commitment with the government of Colombia to provide the country with $1.25 billion in assistance in 2021. The funding will contribute to Colombia’s sustainable and inclusive economic recovery.
The signing ceremony was attended by Colombia’s Minister of Finance and Public Credit, Alberto Carrasquilla; Colombia’s National Planning Department Director, Luis Alberto Rodríguez; the IDB’s Andean Group Country Department Manager, Tomás Bermúdez; and the IDB’s Representative in Colombia, Ignacio Corlazzoli. From the IDB, also present were Benigno López, Vice President for Sectors; Richard Martínez, Vice President for Countries; James Scriven, CEO of IDB Invest and Irene Arias, CEO of IDB Lab.
The resources will contribute to funding Colombia’s General Budget for this fiscal year and will support specific investment projects in the areas of digital transformation of justice, logistics, and public-private partnerships. Additionally, the funding will support Colombia’s public-policy efforts in the fields of migration and sustainable growth, as well as two initiatives of the Office of the Comptroller General, Colpensiones and Bancóldex.
“For Colombia, the IDB is a key partner in terms of access to funding and technical assistance,” Minister Carrasquilla said. “We always prioritize strategic initiatives for our country’s development in bilateral conversations. This year, the IDB’s support will be instrumental to push forward our economic recovery agenda. The credit program we have formalized today, involving public-sector lending, is a clear example.”
Projects in the pipeline include a $600 million budget-support program to bolster the country’s public-policy agenda for green growth and sustainable development. The effort represents a milestone, as it is the first time an operation of this nature is simultaneously articulated with a policy dialogue and coordinated with other co-financiers. Joint financing will total nearly $1.2 billion.
In recognition of Colombia’s important steps to manage migration, including the recent approval of the Temporary Statute of Protection for Venezuelan Migrants, the IDB, in coordination with the World Bank, will support the country’s public-policy agenda in this area and contribute to advancing dialogue and the support of the international community.
The Justice System’s digital transformation will be at the core of a second, already-structured program. This program will aim at increasing the effectiveness, efficiency, and transparency of Colombia’s Justice System.
The IDB’s financial support to Barranquilla in 2022 for the execution of its Development Plan was also ratified on the sidelines of the Annual Meeting. Support will focus on investment areas associated with biodiversity and urban equality. In association with the Spanish Agency for International Development Cooperation (AECID), this program will immediately begin to structure actions to facilitate access to services and improvements in quality; improve public spaces and housing; incorporate biodiversity into urban development; and achieve environmental cleanliness of the city’s watersheds.
The contract for a $150 million healthcare loan approved in 2020 will also be signed today. The loan will help boost the efficiency of the government’s healthcare-insurance spending and improve the General Health and Social Security System’s capabilities and sustainability in terms of coverage, equality, and financial protection. This operation, whose disbursements will be made on a results basis, will be the first of its kind between Colombia and the IDB. Through this credit, $9.6 million in additional non-reimbursable resources will be leveraged to fund the healthcare needs of migrants. These resources will proceed from the IDB’s Non-Reimbursable Facility and from a €2 million grant from the Government of Germany.
Separately, the execution phase begins today for a $50 million project to support Colombian teens and youth in the development of 21st-century skills under the program Sacúdete, signed in late 2020. Colombian President Iván Duque Márquez, First Lady María Juliana Ruiz, IDB President Mauricio Claver-Carone, and IDB Executive Director for Colombia and Peru Sergio Díaz Granados will attend the ceremony this afternoon.
IDB Representative in Colombia