The UK is set to grow its involvement with major infrastructure, clean energy, and construction projects in Central America following the signing of a new partnership agreement.
The memorandum of understanding (MoU) between UK Export Finance (UKEF) and the Central American Bank for Economic Integration (CABEI) aims to enable closer economic collaboration and support the development of projects in the region.
According to the organisations involved, the agreement guarantees a closer relationship between both institutions and will help finance major projects in Central America that involve UK exports.
The agreement will also support businesses and jobs in the UK – a condition of UKEF’s involvement overseas.
Further, the agreement aims to encourage joint financing of major clean energy, infrastructure, and construction projects in the region, bringing in expertise from the UK.
UKEF said governments and businesses in Central America looking to raise funds to develop larger projects can benefit from working with CABEI while also accessing UKEF support.
Countries that stand to benefit from the agreement include the Dominican Republic, Guatemala, Honduras, and Nicaragua.
£2.5bn is available for new business in Guatemala, Honduras, and Panama; while £1.5bn is available for Costa Rica, El Salvador, and Nicaragua.
‘Robust channel of cooperation’
Commenting on the agreement, Louis Taylor, chief executive of UKEF, said: “I am delighted today to sign a memorandum of understanding with CABEI.
“In doing so, we have agreed a robust channel of cooperation between our two organisations in order to find and finance projects in Central America involving UK exports.
“Elsewhere in the world, we have transformed lives, supporting healthcare projects in Ghana, clean energy in Taiwan, and transportation projects in Egypt.
“Working with CABEI we can bring this expertise to Central America.”
Dante Mossi, executive president of CABEI, added: “Working together we can bring more UK expertise to Central America.
“CABEI is committed to supporting the UK’s ambition for a Global Britain and this MoU is a demonstration of our desire to strengthen social and economic ties between both markets.”
Image: Danny Lau/Shutterstock
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