CAF – Development Bank of Latin America and the Caribbean has unveiled a new financial mechanism to support Venezuela’s recovery following the powerful earthquakes that struck the country on June 24.
According to a CAF press release, the newly established Venezuela Recovery and Reconstruction Fund is intended to mobilize financial support from governments, international organizations, businesses, foundations, individuals and other partners to help finance the country’s recovery and reconstruction efforts.
The announcement comes in addition to the US$300,000 in humanitarian assistance that CAF had already committed to support emergency response operations in the immediate aftermath of the disaster.
The bank said the new fund will consolidate contributions under a single framework that emphasizes accountability and transparent management. Resources will be directed toward recovery and reconstruction projects identified and prioritized by the Government of Venezuela, helping to coordinate assistance, avoid duplication of efforts and ensure funding reaches affected communities more quickly.
To launch the initiative, CAF has pledged an initial US$1 million, which will be used to finance priority recovery projects. The institution also announced that it will waive all administrative and implementation fees, ensuring that every contribution made to the fund is used directly for emergency response and reconstruction activities.
CAF Executive President Sergio Díaz-Granados called on governments and the private sector to support the initiative.
“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,” he stated.
The press release said that the fund has been designed to evolve alongside the country’s recovery process.
Its initial phase will focus on urgent humanitarian needs, including emergency relief, essential supplies and assistance for the institutions coordinating disaster response efforts. As recovery progresses, financing will shift toward restoring vital public services such as healthcare, water and sanitation systems, electricity, education, and communications infrastructure.
In the longer term, the mechanism will support reconstruction projects aimed at rebuilding communities, restoring livelihoods, and strengthening resilience against future disasters. CAF said investments will be determined progressively based on damage assessments and priorities identified by the Venezuelan government.
The bank noted that all resources contributed to the fund will remain separate from CAF’s own financial resources. The mechanism will include intervention-specific tracking, regular financial reports, and independent audits to promote transparency and accountability.
Contributors will be able to make donations in either U.S. dollars or euros. Depending on what is most effective for each project, funds may be implemented through eligible partner organizations or managed directly by CAF.
The institution said its long-standing relationship with Venezuela—as one of CAF’s founding member countries and the location of its headquarters—reinforces its commitment to supporting the country’s response, recovery and reconstruction. CAF added that it will continue using its technical expertise and financial capacity to help mobilize solidarity from across Latin America, the Caribbean and the wider international community.
The press release also noted that additional information on the initiative, including how governments, organizations, and individuals can contribute, is available through the Recovery and Reconstruction Fund for Venezuela.
