The Latin American Investment Facility (LAIF) is one of the European Union’s regional blending facilities. The aim of LAIF is to mobilize funding for large infrastructure and development projects, by combining EU grants, and other financial instruments, with financial resources from European and regional financial institutions, governments and the private sector. For each euro provided by LAIF, its partners committed an average of 24 euros of investment.
In Latin America, where an increasing number of countries are looking for different approaches, innovative instruments, partnerships and new forms of tailored support for investment, blending facilities such as LAIF provide the supporting framework they need.
Key information
Total Budget
Approximately €12 Billion
EU contribution
€449 Million
Duration
From 2010 onwards
Geographical Coverage
17 Latin American countries: Argentina, Cuba, Nicaragua, Bolivia, Ecuador, Panama, Brazil, El Salvador, Paraguay, Chile, Guatemala, Peru, Colombia, Honduras, Uruguay, Costa Rica, and Mexico.
Implementing Organisations
European Investment Bank (EIB), the French Agency for Development (AFD), the AECID, KfW Development Bank, COFIDES, Central American Bank for Economic Integration (CABEI), CAF and IDB
Objectives
The purpose of LAIF is to help Latin American countries finance projects in key sectors that are essential for the achievement of the Sustainable Development Goals, such as sustainable energy, environment, water, transport, inclusive social services, and support to small and medium-sized enterprises (SMEs).
LAIF has three main interconnected and mutually reinforcing strategic objectives:
- Improving the quality of infrastructure in Latin American countries, including energy efficiency, renewable energy systems, and sustainable transport and communication networks.
- Increasing environmental protection and supporting climate change adaptation and mitigation.
- Promoting equitable and sustainable socio-economic development through the improvement of social service infrastructure and support to SMEs.
Impact
Since the launch of LAIF in 2010, 50 projects (34 bilateral and 16 multi-country) have been launched, of which 16 were located in the seven lowest income countries in the region – Bolivia, Cuba, Ecuador, El Salvador, Honduras, Nicaragua and Paraguay – representing 40% of the LAIF funds contracted.