IDB-Japan economic inclusion programme to deploy more funds to region

THE INTER-AMERICAN Development Bank, IDB, and the Japan International Cooperation Agency, JICA, have agreed to increase contributions to the CORE programme, short for Cooperation for Economic Recovery and Social Inclusion, that they co-finance.

The agreed US$1-billion increase will expand the size of CORE funding to US$4 billion and extend the programme to December 2028.

IDB Group, based in Washington, said the new expansion of CORE will substantially boost the funds available for co-financing and co-investment opportunities in quality infrastructure, disasterrisk reduction, universal health coverage, poverty alleviation and climate change initiatives.

Established in 2011, CORE was initially funded with US$1 billion in commitments from JICA, aiming to enhance renewable energy and energy efficiency in Central America and the Caribbean.

Since then, the programme has tripled its funding and broadened its sectoral and geographical focus to encompass the entire Latin America and Caribbean region.

“We are thrilled about the expansion of the CORE programme, a cornerstone of our partnership with the government of Japan and JICA. This co-financing partnership has been a very effective and innovative way through which we can meet the needs of our region. This new chapter will only make it stronger,” said IDB President Ilan Goldfajn.

JICA President Tanaka Akihiko added that, beyond the CORE programme, the Japan agency also intends “to contribute to further recovery and growth of the region by deepening our collaboration with the IDB Group.”

The CORE programme involves both IDB Invest and IDB Lab as well as the JICA-IDB Lab’s TSUBASA Programme, which supports Japanese start-ups aiming to tackle the development agenda in the region.

The IDB said a total of 19 applicants were selected for acceleration assistance in matching with potential local partners and creating business plans.