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PORT OF SPAIN, Trinidad, Jun. 28, CMC – The Development Bank of Latin America and the Caribbean (CAF) has launched the Venezuela Recovery and Reconstruction Fund, a new mechanism designed to mobilize and channel public, private and international contributions to support the country’s recovery following the earthquakes that struck last week.
The initiative comes in addition to the US$300,000 in humanitarian assistance previously announced by CAF to support emergency response efforts.
According to CAF, the fund will bring together contributions from governments, international organizations, businesses, foundations, individuals and other partners under a single framework that emphasizes transparency, accountability and coordinated action.
Resources will be directed toward recovery and reconstruction projects identified and prioritized by the Venezuelan government, helping to avoid duplication of efforts and accelerate assistance to affected communities.
As an initial commitment, CAF will contribute US$1 million to launch the fund and support priority recovery initiatives. The bank said it will not charge any fees for administering or implementing the fund, ensuring that all contributions are used directly for emergency response and reconstruction activities.
“Acts of nature are met with acts of humanity and solidarity, and Venezuela needs us today more than ever,” said CAF Executive President Sergio Díaz-Granados.
“Venezuela is a founding country and home to CAF’s headquarters, and that is why we are launching this reconstruction fund—an agile and transparent mechanism that we invite governments and the private sector to join. Our commitment is to accompany the Venezuelan people not only during the emergency, but throughout the entire recovery and reconstruction process.”
CAF said the fund is structured to support different phases of the recovery effort. In its initial stage, resources will be used for humanitarian assistance, emergency supplies and support for institutions leading the response.
Subsequent phases will focus on restoring critical services, including healthcare, water and sanitation, energy, education and telecommunications. Longer-term efforts will support reconstruction, livelihood restoration and initiatives aimed at reducing vulnerability to future disasters.
The bank noted that projects will be implemented progressively based on damage assessments and priorities established by the Venezuelan authorities.
CAF said the fund will operate independently from its own financial resources and will include strict accountability measures, including intervention-level tracking, periodic financial reporting and independent audits.
Contributions may be made in U.S. dollars or euros and can be implemented through eligible partner organizations or, where appropriate, managed directly by CAF.
According to Díaz-Granados, its longstanding relationship with Venezuela, one of its founding members and the location of its headquarters, reinforces its commitment to supporting the country’s response, recovery and reconstruction efforts while mobilizing solidarity from across the region and the international community.
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