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EU creates new Caribbean and Pacific Investment Facilities to support key investment in infrastructure

Brussels, 30/04/2012

The EU has decided, in cooperation with partner countries of the Caribbean and Pacific regions, to launch the Caribbean Investment Facility (CIF) and the Investment Facility for the Pacific (IFP) region. Both facilities respond to the need
to invest in key infrastructure, to make the regions competitive in global markets and boost potential for economic growth and reducing poverty. The IFP also more specifically responds to the challenges countries in the Pacific region face in financing climate change sensitive and “green” investments.
The two facilities aim to close funding gaps for projects, by blending and leveraging European Development Fund (EDF) grant resources with the lending capacity of finance institutions and private sector capital. With a total allocation of €50 million, they will allow the EU to support a number of key projects in the Caribbean and Pacific regions. The main priorities for the CIF (€40 million) are interconnectivity, energy infrastructure, transport, environment, climate change adaptation and mitigation, social services infrastructure and support for private sector development, in particular small and medium enterprises (SMEs).
The IFP’s focus (€10 million)) on climate change sensitive and “green” investments includes the areas of transport, energy, telecommunications, water and sanitation, as well as actions adapted to climate change or reducing the impact of natural hazards. In addition, capital may be provided to particular SMEs and to social sector support investment projects by bringing together EDF grant contributions with loans from European and regional development finance institutions.
The investment facilities will be established based on the good past experience of similar models, such as the Latin American Investment Facility (LAIF), the Neighbourhood Investment Facility (NIF), the Investment Facility for Central Asia (IFCA) and the EU-Africa Infrastructure Trust Fund (ITF). The new mechanisms will engage the regions in both the
planning of the action and the future operations, and thus secure local ownership, which is essential for the sustainability of EU cooperation.
Contact person
Eleftherios Tsiavos
European Commission
DG for Development and Cooperation – EuropeAid
Unit “Financial Instruments”, DEVCO/C3
L-41 02/115
B-1049 Brussels/Belgium
+32 2 29 84259

Category/ies:Regional News.
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