CABEI Commits $790m to Drive Sustainable Development in Latin America
Honduras is set for a significant leap in energy capacity thanks to a US$300 million credit line from the Central American Bank for Economic Integration (CABEI) to the National Electric Energy Company (ENEE).
This financing will back the procurement of 1,500 MW of firm capacity, benefiting over 2.2 million users. Beyond meeting immediate energy demands, the initiative is poised to stimulate more than US$2 billion in private investment, paving the way for a more efficient and sustainable electricity system.
By addressing infrastructure bottlenecks, Honduras can enhance energy reliability and attract new industries.
Enhancing Road Infrastructure in Nicaragua
Nicaragua will see transformative changes in its transportation network with a US$235 million investment aimed at upgrading approximately 50 kilometres of roads across five departments. The improvements will integrate sustainable and climate-resilient construction practices, ensuring long-term durability against extreme weather.
These road projects will directly benefit 2.4 million people, improving access to essential services such as healthcare, education, and employment, while significantly cutting travel times. Better roads will also bolster trade and local economic activity, creating opportunities for rural communities.
Supporting Colombia’s Climate Reforms
Colombia is advancing its environmental agenda with a US$75 million Development Policy Operation from CABEI. The funding will drive key reforms, including the regulation of single-use plastics, enhanced monitoring of greenhouse gas emissions, and the strengthening of strategic natural reserves.
These measures are designed to foster equitable, low-carbon growth and increase resilience to climate change. By aligning with Colombia’s ambitious climate policies, the initiative reinforces the nation’s role as a regional leader in environmental stewardship.
Strengthening Food Security in Argentina
In Argentina, CABEI has approved a US$100 million project to bolster food security for 2.7 million people. Targeting 1.5 million households, the programme prioritises vulnerable groups such as children, pregnant women, adolescents, and people with disabilities.
Direct transfers will ensure access to essential goods across all 24 provinces, reducing the risks of malnutrition and improving overall wellbeing. The initiative represents a crucial step in addressing socio-economic inequalities exacerbated by inflation and economic instability.
Driving Financial Inclusion in Guatemala
Guatemala will benefit from CABEI’s first operation with Crédito Hipotecario Nacional (CHN), amounting to US$60 million. The loan will support micro, small, and medium enterprises (MSMEs), particularly those led by women, while also funding social housing and key productive sectors.
By expanding access to credit, the programme aims to stimulate job creation, promote financial inclusion, and strengthen the country’s economic fabric. Thousands of jobs are expected to be generated, directly impacting local communities.
Empowering MSMEs in Panama
In Panama, CABEI is providing a US$20 million credit line to Banesco Panama to finance over 280 MSMEs. This capital injection will empower entrepreneurs and small producers, reinforcing economic stability and generating new employment opportunities.
The initiative underscores the importance of small businesses as the backbone of economic growth and resilience, particularly in times of global uncertainty.
A Unified Commitment to Regional Progress
Collectively, these operations—totalling US$790 million—highlight CABEI’s unwavering commitment to fostering inclusive, sustainable development across its member countries. By targeting key sectors such as energy, infrastructure, climate resilience, food security, and entrepreneurship, CABEI is not only addressing immediate needs but also laying the foundation for long-term prosperity.
As CABEI stated: These operations reaffirm the Bank’s role as an engine of positive transformation and its commitment to the economic, social, and environmental development of its member countries.
Building a Stronger, More Resilient Future
With projects spanning diverse sectors and regions, CABEI’s latest funding package illustrates the power of strategic investment in driving positive change. Whether through renewable energy expansion, climate action, or targeted social programmes, these initiatives are poised to leave a lasting impact on millions of lives.
The ripple effects, economic, environmental, and social, will help shape a stronger, more resilient future for Central America and beyond.
