CAF Creates $1 Million Fund for Venezuela's Earthquake Recovery

CAF, the development bank for Latin America and the Caribbean, has launched the "Fund for the Recovery and Reconstruction of Venezuela." This initiative aims to channel public, private, and international contributions to address the urgent needs arising from the earthquakes that struck Venezuela on June 24, which have so far claimed nearly 1,000 lives.

The fund will be activated with an initial contribution of $1 million from CAF, adding to a previous $300,000 donation in humanitarian aid. The mechanism is designed to receive contributions from governments, international organizations, companies, foundations, and individuals. Its goal is to consolidate resources under a unified administration and accountability framework, preventing the dispersion of efforts and accelerating aid delivery to affected areas.

"Acts of nature are met with acts of humanity and solidarity, and Venezuela requires us today more than ever. Venezuela is a founding country and the headquarters of CAF, which is why we are launching this Fund for reconstruction: an agile and transparent mechanism to which we invite governments and the private sector to join," stated Sergio Díaz-Granados, executive president of CAF.

The fund's phased approach includes immediate relief through humanitarian aid and essential supplies, followed by financing for the rehabilitation of critical services like health, water, sanitation, energy, and education. The final stage will focus on reconstruction, livelihood recovery, and strengthening resilience against future disasters. CAF will manage the fund without charging fiduciary or implementation fees, ensuring all contributed resources directly support emergency response and recovery efforts. The mechanism will feature segregated resources, independent audits, and regular financial reporting.

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Acts of nature are met with acts of humanity and solidarity, and Venezuela requires us today more than ever. Venezuela is a founding country and the headquarters of CAF, which is why we are launching this Fund for reconstruction: an agile and transparent mechanism to which we invite governments and the private sector to join.