CAF Announces Fund of Up to $200 Million for Venezuela Emergency Response

The Development Bank of Latin America and the Caribbean (CAF) has announced the creation of a multi-donor fund totaling up to $200 million to support Venezuela's recovery and reconstruction following the devastating earthquakes on June 24.

The earthquakes have resulted in a tragic toll of 1,450 deaths, 3,150 injuries, and left 12,721 families displaced. The CAF's solidarity mechanism is designed to be flexible and transparent, enabling contributions in dollars and euros from governments, multilateral organizations, private companies, and foundations.

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will support the recovery and reconstruction of Venezuela after the earthquakes of last June 24, which have left 1,450 dead, 3,150 injured and 12,721 affected families.

The fund includes an initial seed contribution of $1 million in non-reimbursable funds to address the immediate emergency. The CAF has committed to not charging any administration or implementation fees, ensuring that the aid reaches affected populations in full.

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will not charge commissions for the administration or implementation of resources

The fund's intervention plan spans three stages. The first phase focuses on immediate response, financing search and rescue operations, humanitarian assistance, essential supplies, and support for first responders. The second phase involves rehabilitating services and restoring critical infrastructure, including water, sanitation, electricity, health, and education systems. The final stage aims at long-term recovery and resilience, focusing on rebuilding devastated areas, reviving local livelihoods, and mitigating risks from future seismic events.

The CAF will manage the fund's fiduciary administration and conduct due diligence on donors according to international anti-money laundering protocols. It will also provide financial reports and coordinate external audits. In cases of extreme urgency, and at the request of the Venezuelan Executive, the CAF can act as a direct executor to expedite the purchase of goods and contracting of essential works. The fund will operate through a segregated account to ensure public traceability of all invested resources in the most affected regions, including La Guaira state and the central region of the country.

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will act as a direct executor to expedite the purchase of goods and the contracting of essential works