IDB Supports Chile in Strengthening Regional Governments to Create Urban Infrastructure

The Inter-American Development Bank (IDB) has approved a $50 million loan to help Chile support its regional governments in building infrastructure to provide metropolitan-wide urban services. The operation prioritizes investments that boost resilience, reduce greenhouse gas emissions, and enhance gender equity and diversity.

Some 87% of Chile's population is urban, which intensifies its cities' challenges. Metropolitan areas need new ways to coordinate across city limits and sectors to respond to economic, environmental, and social changes.

For example, 45% of waste in Latin America and the Caribbean ends up in poorly managed landfills. In Santiago, Chile, these dumps are located in areas with less commercial value, which deepens territorial inequality. This loan, which the Executive Director of the IDB has approved, aims to address these issues.

The operation will bolster the institutional capacities of regional governments to provide urban infrastructure services in ways that address the challenges of climate change. The project will support the development of governance models and plans with gender equity and inclusion guidelines. It will also train teams on metropolitan governance, including modules on climate change and urban sustainability.

The program will also enhance regional governments' technical capacities by building metropolitan-wide urban infrastructure works for waste management, renovating public spaces, or promoting cultural heritage.

The IDB loan has a 14-year repayment term and a 5.5-year grace period.