IDB and AFD have exchanged ideas on the modalities of the support to be brought to Latin American countries both in their short term responses to COVID-19, and on medium to long-term recovery plans. These could be developed further, leading to a potential joint-cooperation aligned with climate and SDGs objectives, key drivers of the IDB-AFD partnership.
From the Immediate Response to the Long Term
Proof of this ongoing cooperation is the signing of a co-financing agreement and the approval of two grant agreements between IDB and AFD: a Policy based loan to support the decarbonization plan of Costa Rica (AFD: US$150 million and IDB: US$230 million, approved by the Legislative Assembly on May 16, 2020, to tackle the constraints of the pandemic) and two AFD grants to IDB regional facilities on gender parity and ageing populations in LAC, for US$4,3 million.
Ana Maria Rodriguez, IDB’s Vice President of Sectors and Knowledge, stated that “While COVID-19 has brought many aspects of life to a standstill, at the IDB, we are working around the clock to find innovative ways to provide solutions and additional resources to our countries, acting together with our multilateral partners -such as the AFD Group. We cannot control the ongoing pandemic, but we can be responsible in the way we respond to it. Cooperation, alignment and swift process must be guiding principles in our ongoing partnership.”
Laurence Breton-Moyet, AFD’s Director of Strategy, Cooperation and Communication, said: “Increased coordination between regional and national development banks will be key to promote sustainable development pathways and transition plans in the post-Covid response and to effectively channel development finance towards deeply rooted sustainable recovery investment plans. Bringing all public development banks to the table to facilitate such exchanges is clearly one of the objectives of the 1st Global Summit of Public Development Banks that will take place on November 12th in the margins of the Paris Peace Forum.”
IDB and AFD Groups have a strategic cooperation track record in the area of climate change (decarbonization pathways, urban development, energy, transportation), and sustainable development. The two institutions signed a co-financing agreement in November 2018 targeting US$1 billion by 2021. The 2020 Deep Dive Meeting has allowed experts to dig into promising sectoral discussions on biodiversity, climate change, urban development, governance, gender equality, infrastructure, social sectors, migration and financial innovation, further enhanced by the participation of IDB Invest and Proparco, and finalizing with a discussion on the horizon for 2020-21.