A $100 million loan will help improve management of natural capital and production opportunities in 170 municipalities
Colombia will promote environmental and socio-economic sustainability in 170 municipalities affected by the country’s recently-ended conflict with help from a $100 million loan approved by the Inter-American Development Bank (IDB).
The project will finance natural capital restoration and protection, improve rural population’s income and strengthen the technical capacities of local and regional players in the government-designated municipalities.
Between 1990 and 2013, some three million hectares of Colombian woodlands were deforested, while soil degradation affected more than 1.5 million hectares, badly hurting agricultural production and consequently socio-economic development in the localities involved.
The program is expected to contribute to improve and preserve the ability to provide ecosystem services based on natural capital in the affected areas, and to boost up the generation of income for residents through sustainable rural production subprojects.
The $100 million IDB loan, from the Bank’s ordinary capital, is for a 13.5-year term, with a 13.5-year grace period and a LIBOR-based interest rate.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.