A multilateral lender says it has approved a $50m financing facility to support climate change adaptation, as well as economic and social infrastructure projects, throughout the Caribbean.

The Development Bank of Latin America and the Caribbean (CAF), in a statement, said the investment project financing is designed to offer an innovative, agile and flexible funding approach that is tailored to the specific needs of the region.

The facility, approved during CAF’s Board of Directors meeting in San Salvador, El Salvador, last Thursday aims to finance pre-investment projects, promote investments in strategic economic and social infrastructure, and promote institutional strengthening through technical support to guarantee the success of the projects.

“With this facility, we seek not only to provide financial resources, but also to promote the integral development of the Caribbean, responding to the particular challenges of each of the countries. Our expansion in the Caribbean is driving us to be even more innovative and flexible to address the urgent needs of SIDS and channel the financing they need,” said Sergio Díaz-Granados, CAF executive president.

The $50m facility will benefit projects with a maximum loan amount of up to $15m, per operation. The initiative also introduces the flexibility to apply local regulations, and adapt to the regulatory and institutional frameworks of each country in terms of procurement, contracting and compliance with environmental and social safeguards.

During CAF’s Board of Directors meeting, some $2.48bn was also approved for ten countries in Latin America and the Caribbean, which will support resilient infrastructure, accelerate the energy transition, increase productivity and improve urban mobility, environmental sustainability and water and sanitation systems.