CHAPTER 4
FUNDING INFRASTRUCTURE ACROSS LATIN AMERICA
The Latin America and Caribbean (LAC) region accounts for a GDP of almost US$7 trillion and a population of 650 million people. 31 However, LAC countries invest the least in infrastructure among developing regions as a share of GDP — less than 3 percent compared to 5 percent in South
Through the operation, CIFI on-lent the OPEC Fund loan proceeds to four infrastructure sub-projects in clean energy and alternative fuels in Chile and Ecuador. Specifically, the loan benefited three sub-projects to construct solar energy plants: two projects in Chile and one in Ecuador,
Asia, 6.9 percent in the Middle East and North Africa, and 7.7 percent in East Asia and the Pacific. 32 As a result, many LAC countries face challenges in providing the high-quality infrastruc- ture needed for regional integration, competitiveness and productivity.
with a total installed capacity of 92 MW. These plants help the countries address energy needs and contribute to their climate change mitigation efforts by avoiding over 73,000 tons of greenhouse gas emissions per year. In addition, the loan proceeds were used to finance a wood pellet produc- tion facility which uses plant waste
In 2021, the OPEC Fund approved a US$25 million loan to Corporación Interamericana para el Financiamiento de Infraestructura (CIFI). CIFI is a regional non-banking financial institution established in 2001 that provides financing across LAC to small and medium scale infrastructure projects, an area often overlooked by larger commercial lenders.
produced by the local forestry industry in Chile. The facility has an operational capacity of over 120,000 tons of wood pellets per year for the use of bio-energy in heating.
31 OECD
32 WB
Two projects in Chile and Ecuador have a total installed capacity of
92 MW
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