Chile to Strengthen Sustainability in Construction Sector with IDB Support

WASHINGTON - The Board of Executive Directors of the Inter-American Development Bank (IDB) has approved a $30 million loan to strengthen Chile's construction sector, promoting its growth, productivity, and sustainability through the implementation of industrialized methods based on the use of wood.

The "Sustainable Construction Support Program" is the fourth under the Conditional Credit Line for Investment Projects (CCLIP), aimed at boosting productivity and sustainable development in Chile and originally approved in 2022. The program will be executed by the Production Development Corporation (CORFO).

The initiative is designed to benefit companies in the wood construction value chain, as well as training institutions, research centers, and financial entities across at least seven regions of the country: Valparaíso, O'Higgins, Maule, Ñuble, Biobío, Araucanía, Los Ríos, and Los Lagos.

The program aims to improve the sector's efficiency and inclusiveness. It will focus on enhancing access to financing for companies in the wood construction value chain through public guarantees that support key investments, helping to mitigate information asymmetries and perceived risks within the financial sector. Special attention will be given to women-led businesses and those with diverse workforces.

The plan also seeks to improve operational efficiency by strengthening the sector's ecosystem through the provision of complementary public goods such as technical standards, digital tools, gender-focused training, and support for innovation, entrepreneurship, and technology adoption.

The loan, under the specific investment modality, has a repayment term of 23.5 years, a grace period of seven years, and an interest rate based on SOFR.