Colombia to promote environmental and socio-economic sustainability with IDB assistance

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.

Original source: IDB
Published on 4 December 2017