The President of the Latin America development bank (CAF), Enrique García, and the General Director of the International Finance Corporation, Jin-Yong Cai, recently signed an agreement to capitalize the unit 'Financiera de Desarrollo Nacional (FDN)' to promote the infrastructure projects in Colombia.
CAF will add $27.7 million and the IFC will add $55.3 million, making a total of $83 million. The international finance institutions will have shares of 17,68% y 8,84% respectively in the unit.
FDN will operate as a specialized financial institution that will mobilize funding for Colombia's infrastructure projects, including a new toll-road program that will represent a crucial upgrade to solve some of the country's infrastructure bottlenecks.
In addition to its financing role in the infrastructure sector, FDN will bolster the local know-how through a special public-private partnership unit that will focus on structuring infrastructure projects. In October last year, IFC and FDN each provided US$2 million to support the creation of this unit.
Colombia needs about US$40 billion in infrastructure investments and FDN will help ensure the participation of the private sector in financing these projects, which will bolster the country's sustainable economic growth and improve its competitiveness.