Date of effectiveness: 05.2010
LAIF's main purpose is to promote additional sustainable investment in key infrastructure in the transport, energy, and environment sectors, as well as support private sector development in LAC countries. LAIF provides investment grants, technical assistance and risk sharing instruments.LAIF interventions should focus indicatively on the following sectors: energy, agriculture, transport, environment, climate change, SMEs, information and communication technologies (ICT) and social services. LAIF is funded under the EU’s Development Cooperation Instrument (DCI).
The type of support provided differs from project to project, but always consists of one, two or a combination of all three of the following:
- Investment grants, which can finance specific project components or a percentage of the total project cost, thereby reducing the amount of debt for the partner country.
- Technical assistance, which involves the provision of tailored assistance to meet specific project needs, both during project preparation and implementation, which helps to ensure the quality, efficiency and long-term sustainability of a project.
- Risk sharing instruments, such as risk capital and guarantees, which allow the available funds to be used as efficiently as possible by reducing risks and unlocking additional financing.