CAF launches $1 million recovery fund for earthquake-hit Venezuela
Key Points(5)
- The CAF - Development Bank of Latin America and the Caribbean has established a new fund to support Venezuela's recovery and reconstruction efforts following the earthquakes that struck the country on June 24.
- The Venezuela Recovery and Reconstruction Fund was announced on June 26 and is designed to mobilize public, private and international contributions to help address the country's immediate and long-term needs.
- The initiative comes in addition to the US$300,000 in humanitarian assistance that CAF had already pledged for emergency response efforts.
- As part of its initial commitment, CAF will contribute US$1 million in seed funding to launch the mechanism and finance priority initiatives.
- The institution said it will not charge administrative fees, ensuring that all contributions go directly toward emergency response and rebuilding efforts.
The CAF - Development Bank of Latin America and the Caribbean has established a new fund to support Venezuela's recovery and reconstruction efforts following the earthquakes that struck the country on June 24.
The Venezuela Recovery and Reconstruction Fund was announced on June 26 and is designed to mobilize public, private and international contributions to help address the country's immediate and long-term needs. The initiative comes in addition to the US$300,000 in humanitarian assistance that CAF had already pledged for emergency response efforts.
As part of its initial commitment, CAF will contribute US$1 million in seed funding to launch the mechanism and finance priority initiatives. The institution said it will not charge administrative fees, ensuring that all contributions go directly toward emergency response and rebuilding efforts.
The fund will receive donations from governments, international organizations, businesses, foundations, individuals and other partners under a single framework aimed at promoting transparency and accountability. Resources will be directed toward projects identified and prioritized by the Government of Venezuela.
According to CAF, the mechanism is intended to provide a coordinated response that avoids duplication of efforts and speeds up the delivery of aid to affected communities.
"Acts of nature are met with acts of humanity and solidarity, and Venezuela needs us today more than ever," said Sergio Díaz-Granados. "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."
CAF said the fund is designed to adapt to the different stages of recovery. In its initial phase, it will support immediate humanitarian assistance, including emergency supplies and assistance for institutions leading the response efforts. The next phase will focus on restoring critical services such as healthcare, water and sanitation, energy, education and connectivity.
In the longer term, the fund will support reconstruction and resilience initiatives, including rebuilding efforts, restoring livelihoods and reducing vulnerability to future disasters. The bank said interventions will be guided by damage assessments and priorities established by Venezuelan authorities.
The fund's resources will remain separate from CAF's own finances and will include independent audits, periodic financial reporting and traceability measures to ensure accountability. Contributions can be made in U.S. dollars or euros and may be implemented through eligible entities or directly managed by CAF when deemed more efficient.
CAF said its longstanding relationship with Venezuela, a founding member and the location of the institution's headquarters, reinforces its commitment to supporting the country's recovery and mobilizing regional and international solidarity in the aftermath of the disaster.
