|
MIF APPROVES $10 MILLION FINANCIAL COMMITMENT TO STRENGTHEN AIRPORT SECURITY IN LATIN AMERICA, CARIBBEAN
First response of the IDB Group to challenge of September 11 attacks
The Multilateral Investment Fund of the Inter-American Development Bank today announced the approval of up to $10 million in grants to help strengthen airport security in the countries of Latin American and the Caribbean.
The line of activity is the first financial operation of the IDB Group that is a direct response to the challenge to the world community presented by the attacks of Sept. 11.
IDB President Enrique V. Iglesias in October publicly committed the Bank to provide support to new operations that will assist the region in strengthening its aviation sector and making it more resilient and internationally competitive in view of the devastating impact of the Sept. 11 events. The aviation and tourism industries in many countries were hard hit by the drop in tourism and airline traffic that followed the attacks, and that in turn affected entire national economies.
The goal of the current line of activity is to help enhance civil aviation policies and regulatory frameworks, improve administrative services and train personnel in charge of surveillance and enforcement of new regulations.
The MIF’s contribution would be a maximum of $500,000 for each qualified project, which would also require a counterpart contribution from the country of between 30% to 50% of the total value.
Strengthening the institutional and regulatory framework of airport security is critical to improving the economic competitiveness of many countries. Aviation is an important component in the travel and tourism industry, as well as a critical factor in decisions to locate industries and establish markets in perishable agricultural products, components for high-technology industries, and businesses with time-pressured inventories.
"This new line of financing will help us channel resources in a timely way to meet the urgent needs of the region to upgrade airport security," MIF Manager Donald Terry said.
In an earlier operation to promote aviation safety, in December 2000 MIF approved a $4 million grant to assist the five countries of Central America, Belize, Dominican Republic, Haiti and Panama to improve the safety and competitiveness of the aviation sector by bringing national safety standards closer in line with international standards.
The Multilateral Investment Fund, an autonomous fund administered by the Inter-American Development Bank, provides grants and investments to accelerate private sector development and help improve the climate for investment in Latin America and the Caribbean.
|
