CAF, Development Bank of Latin America and the Caribbean, announced the establishment of the Venezuela Recovery and Reconstruction Fund, a mechanism designed to gather, mobilise, and channel public, private, and international contributions toward the country’s recovery priorities following the earthquakes that struck on 24 June.
The initiative is in addition to the US$300,000 in humanitarian aid already announced by CAF to assist in the emergency efforts.
The fund will receive contributions from governments, international organisations, companies, foundations, individuals, and other partners, and bring them together under a common framework of administration and accountability. Resources will be directed toward recovery and reconstruction initiatives identified and prioritised by the Government of Venezuela. In doing so, it aims to deliver a coordinated response that avoids the fragmentation of efforts and accelerates the delivery of resources to the affected areas.
As an initial commitment, CAF will contribute US$1 million to launch the fund and finance the priority initiatives. CAF will not charge any fee for administering or implementing the fund, so that every dollar contributed goes toward addressing the emergency and supporting reconstruction.
“Acts of nature are met with acts of humanity and solidarity, and Venezuela needs us today more than ever. Venezuela is a founding country and home to the headquarters of CAF, and that is why we are launching this fund for reconstruction: an agile and transparent mechanism that we invite governments and the private sector to join, so that their contributions, together with ours, become part of an effective response. Our commitment is to accompany the Venezuelan people not only during the emergency, but throughout the entire path of recovery and reconstruction that lies ahead,” stated Sergio Díaz-Granados, Executive President of CAF.
The mechanism is designed to adapt to the different stages of the response. In the first phase, it will support immediate assistance, including humanitarian aid, essential supplies and support for the institutions leading the emergency response. It will then help rehabilitate critical services in areas such as health, water and sanitation, energy, education and connectivity. In a later stage, the fund will support recovery and resilience efforts, including early reconstruction, the restoration of livelihoods and actions to reduce vulnerability to future events. Interventions will be defined progressively, based on damage assessments and the priorities established by the Government.
The fund will operate with resources that are ring-fenced and independent from CAF’s own resources. It will include traceability by intervention, periodic financial reporting and independent audits. Contributions may be made in US dollars or Euros, and resources may be executed flexibly, either through eligible implementing entities or, where more efficient, through direct management by CAF.
CAF’s historical bond with Venezuela as a founding country and the location of its headquarters reinforces the Bank’s commitment to accompany the Venezuelan people and their institutions in the response, recovery, and reconstruction efforts that this emergency will require, placing its technical and financial capacity at their disposal to mobilise the solidarity of the region and the international community.
To learn more details and become part of this initiative, follow the link Recovery and Reconstruction Fund for Venezuela.
CAF
