The World Bank Board of Directors has approved a US$ 500 million loan to guarantee the continuity of and access to basic infrastructure services for the most vulnerable groups in Colombia. The financing will also promote the development of resilient, sustainable infrastructure in response to the Covid-19 crisis. The crisis caused by the pandemic has exerted considerable pressure on companies that provide basic services, such as electric power, water and sanitation, and public transportation. It also impacted infrastructure development. This loan seeks to support the Colombian government in its efforts to address the effects of the crisis on vulnerable sectors, establish policy guidelines for the economic recovery, and advance reforms that promote the development of clean energy and sustainable transport.

The loan will support the following three pillars of the government program. Maintaining the provision of basic services and access to basic infrastructure through the financing of public service companies and public-private partnerships (PPP) that are experiencing financial difficulties. This will help guarantee service provision to the most vulnerable households and the productive sector. Additionally, the program will support the financial sustainability of basic household services, integrated urban mass transport systems and road infrastructure concessions in the country.

The Ministry of Energy and Mines, the Ministry of Transport, the Ministry of Housing, City and Territory and the National Planning Department will coordinate and implement this development policy financing (DPF).