Presentation by CABEI at Global Water Partnership Consulting Partners Meeting 2010

Global Water PartnershipConsulting Partners Meeting

2010

September, 2010

Central American Bank for Economic Integration (CABEI)

Alejandro Rodríguez Zamora, LLMExecutive Vicepresident

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CABEI’s Background

• Supranational development bank focused on Central America, founded in 1960.

• Headquartered in Tegucigalpa, Honduras.

• Five Founding Members: • Costa Rica• El Salvador• Guatemala• Honduras• Nicaragua

• Seven Non-Regional Members:• Argentina * • Colombia * • Panama *• Dominican Republic *• Spain• Mexico• Republic of China (Taiwan)

• One Beneficiary Country:

• Belize

Colombia

Mexico

Argentina

Spain

Dominican Republic

ROC (Taiwan)

Founding MembersNon-Regional MembersBeneficiary Members

(*) These members have also acquired Beneficiary Status

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CABEI’s Mission

CABEI´s mission is to promote the economic integration and the balanced economic development, of the Central American Countries.

To achieve its mission, CABEI focuses on infrastructure projects, long-term investments in industries of a Regional nature and of interest to the Central American Market; investments in the agricultural sector that improve exploitation, industrial modernization and expansion; services for the Region´s social development, the conservation of natural resources and the environment.

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CABEI is determined to act as a regional leader in the financing of social development, integration, and competitive insertion of our member countries, into the global economy. To this end, CABEI will continue strengthening its financial soundness, acting with the highest standards of service quality, promoting an institutional culture of effectiveness, transparency, integrity and ethics, efficiently using the public resources that have been entrusted to the Institution.

CABEI’s Vision

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CABEI`s Environmental Policy

The purpose of the Regulation under the Environmental and Social Policy of CABEI, is to promote environmental and long term social sustainability in, Central America.

To that end CABEI has implemented:

Institutional Responsibility Plan.

Identification , Evaluation and Mitigation System for environmental and

social risks, in the business cycle

Environmental Strategy

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GLOBAL ResponsibilityEj. Carbon Markets, biodiversity

GLOBAL ResponsibilityEj. Climate Change , etc.

CABEI`s Identification, Evaluation and Mitigation System for environmental

and social risks

Central America and it`s Sustainable Development

Environmental and Social

Management System

Central American Bank for

Economic Integration

Institutional Responsibilit

y Plan

STRATEGY

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Fields of Action in the Environmental Strategy

• Biodiversity• Water (as a resource).• Land Use (natural disaster mitigation)• Waste management• Energy• Air contamination. Each of the aforementioned action fields must be seen as part of

the transversal axis of CABEI’s Global Strategy:

Social Development

Competitiveness

Regional Integration

Transversal Axis: Sustainable Development

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For that reason, CABEI as the sub-regional development bank for the Central American region has included water, as one of the Fields of Action in its Environmental Strategy.

Water problems require an inter-sector approach that recognizes the relationship between land and water, agriculture and water technology and health and water - that affects water management.

A rational management of water is an indicator of prosperity and social development. The inter-relationship between the rational and sustainable management of water resources and poverty reduction is critical and for that reason, the International Community must consider a number of specific actions, for their proper management and conservation.

CABEI`s Environmental Strategy

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In relation to the management of water resources, CABEI has an active participation in regional and national initiatives for the conservation, watershed management and sustainable management of water, both freshwater and marine resources and in the financing of projects aimed at extending service coverage of water supply and sanitation.

Additionally, CABEI will ensure that projects and programs financed by it, consider the rational use of water and the proper disposal of waste that may affect this resource, promoting harmonization of water, land and forest policies, that will improve water conservation and soil, as well as halting land degradation.

CABEI`S ROLE

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CABEI`s Financing in Sustainable Development

Throughout the Central American Region, CABEI has financed:

Renewable Energy Projects: US$ 1372 Million.Central American Border Zone Development Program (ZONAF): US$ 38.5 Million.Central American Markets for Biodiversity (CAMBio): US$ 196 thousand.

Additionally, through several regional integration bodies; CABEI has promoted meetings with Development Banks, for the purpose of exchanging experiences and best practices on the development of financial instruments and nonfinancial programs related to: energy efficiency (EE), renewable energy (RE), conservation and reforestation, among others.

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In November 2009, ZONAF co-financed the “First Mesoamerican Conference for Peace and Sustainable Development in Shared River Basins” implemented by El Zamorano University, in Honduras.

The objective was for participants to exchange experiences and information across Mesoamerica in order to create a think tank for new ideas that can change current policies related to water management.

A complete publication was released in the first quarter of the year 2010 that collected several experiences that were presented during the conference.

Water and Sanitation

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Water and Sanitation

• ZONAF is executing 29 projects in the water and sanitation sector.• Through ZONAF, the EU has invested US$6.8 million.

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134

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GuatemalaEl SalvadorHondurasNicaraguaCosta Rica

DISTRIBUTION PER COUNTRY – WATER AND SANITATION PROJECTS

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5,800 homes with access to drinking water and sanitation systems that have benefited 53,713 people.

Water and Sanitation

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Water and Sanitation (Regional Interventions in Benefit of Shared River Basins)

In June 2010, ZONAF financed the “Regional Training on Economic and Financial Instruments for an Integral Management of Shared River Basins” that was structured and implemented by Global Water Partnership and El Zamorano University, in Honduras.36 members of regional institutions participated in this training in which they received practical mechanisms for a proactive management of shared river basins that will improve their capacity as planning agencies in this subject.

Global Water PartnershipConsulting Partners Meeting

2010

September, 2010

Central American Bank for Economic Integration (CABEI)

Alejandro Rodríguez Zamora, LLMExecutive Vicepresident

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