On August 24, the Japan International Cooperation Agency (JICA) signed three cooperation agreements with the Inter-American Development Bank Group (IDB Group) aimed at strengthening cooperation to promote sustainable socioeconomic development and private investment in Latin America, the Caribbean, and the Central American region.
The document signed on this occasion pertains to the following:
(1) Memorandum of Understanding on the Expansion of the “CORE” (Cooperation for Economic Recovery and Social Inclusion) Joint Financing Framework
(2) Memorandum of Understanding on the Establishment of a Framework for Cooperation in the Fields of Long-Term Care, Health System Strengthening, and Digital Health
(3) Increase in the Contribution Ceiling for the “Trust Fund for Achieving Development in Latin America and the Caribbean (TADAC)”
The signing ceremony was attended by JICA President Akihiko Tanaka, Minister of Finance Satsuki Katayama, Inter-American Development Bank (IDB) President Iran Goldfajn, and IDB Invest CEO James Scriven. In addition to the four parties signing the Memorandum of Understanding (MoU) regarding cooperation in the areas of long-term care, health system strengthening, and digital health, Minister of Finance Katayama witnessed the signing of two other agreements.
Scenes from the signing ceremony
Through CORE, JICA and the IDB Group have worked to promote high-quality infrastructure investment, strengthen resilience to natural disasters (disaster risk reduction), improve access to health care services (Universal Health Coverage: UHC), and the financial sector, working to address the development challenges facing the Latin American and Caribbean region. Meanwhile, in addition to the impacts of climate change and increasing risks of natural disasters, the region is facing new challenges—such as ensuring food security, securing a stable supply of critical minerals, and addressing an aging population—which require even stronger efforts to tackle these issues.
To strengthen our response to these challenges, we have raised the target commitment amount for CORE’s co-financing from US$4 billion to US$5 billion, extended the cooperation period through 2031, and added agriculture and critical minerals-related sectors to the scope of co-financing for the public sector (Note). Furthermore, under a new cooperation framework in the health and social security sectors, the Ministry of Finance of Japan, the IDB Group, and JICA will promote collaboration by sharing information and exchanging views from the early stages of project development in the areas of long-term care, health system strengthening, and digital health. Furthermore, regarding the Trust Fund for Private Sector Development (TADAC)—established within the IDB Group with funding from JICA—the maximum contribution limit will be raised from 1 billion to 1.5 billion U.S. dollars to further advance efforts to address development challenges in the region through the private sector.
This expansion of cooperation will further strengthen efforts to address development challenges in Latin America and the Caribbean. In particular, cooperation in the agriculture and critical minerals sectors—which are being newly added to the scope of CORE—is expected to contribute to the region’s sustainable development, while also helping to strengthen Japan’s food and economic security and build resilient supply chains. Furthermore, in the fields of health and long-term care, health system strengthening, and digital health, Japan’s experience and expertise—cultivated through its response to an aging population, its healthcare system, and digital technologies—are expected to be leveraged. Furthermore, by leveraging the IDB Group’s network and private sector support functions, it is expected that this initiative will expand opportunities for Japanese companies to participate in the Latin American and Caribbean region and contribute to economic relations between Japan and the region.
(Note) Agriculture and sectors related to critical minerals have been newly added as eligible sectors for coordinated financing for the public sector; however, coordinated lending and financing for the private sector has never been limited to specific sectors.
© Source JICA