Chile and IDB Sign $180M Deal to Boost Growth, Exports, and Sustainability

Chile and IDB Sign $180 Million in Agreements to Boost Economic Resilience, Export Diversification, and Sustainable Development.

In a significant step toward fostering inclusive economic development, the Inter-American Development Bank (IDB) and the Republic of Chile signed four strategic agreements totaling $180 million during the IDB and IDB Invest Annual Meetings held in Santiago, Chile. The agreements reflect a deepening partnership between Chile and the IDB, aimed at supporting sustainable and resilient growth, enhancing regional government capacities, diversifying exports, and modernizing infrastructure and public services in remote regions such as Rapa Nui (Easter Island).

The announcements were made as the IDB’s 48 member countries convened in Santiago for the annual meetings, where policymakers, private-sector leaders, and international stakeholders gathered to discuss critical development challenges and shared priorities for Latin America and the Caribbean.

A Stronger Partnership for a Resilient Future

“These agreements reflect the historical and deep partnership between Chile and the IDB and our shared commitment to advancing economic development,” said IDB President Ilan Goldfajn. “We’re grateful to Chile for hosting this year’s Annual Meetings and look forward to working with them to advance common priorities.”

The four financing operations form a key part of the IDB’s Country Strategy with Chile, designed to align with the country’s goals of climate resilience, digital transformation, export diversification, and inclusive development. Below is a breakdown of the newly signed agreements:

1. $100 Million for Economic Transformation and Climate Resilience

The largest of the agreements is a $100 million operation aimed at accelerating Chile’s economic transformation by promoting resilient and sustainable growth. The funds will support reforms to improve public policy frameworks, particularly those focused on reducing environmental pollution and bolstering infrastructure resilience against natural disasters.

This initiative emphasizes support for low-income communities, which are often the most vulnerable to climate-related risks. The program also aligns with Chile’s commitments under the Paris Agreement and its long-term carbon neutrality goals.

2. $50 Million to Strengthen Regional and Urban Governance

To improve the effectiveness of Chile’s regional governments, a $50 million program will be implemented to enhance their technical and operational capacity. The focus will be on improving the delivery of metropolitan-wide urban services and the development of infrastructure projects, including public space renewal and the promotion of cultural heritage.

By empowering regional authorities, the initiative seeks to decentralize decision-making, promote citizen participation, and improve the quality of life in urban areas across the country.

3. $15 Million to Boost Global Services Exports

Recognizing the need to diversify Chile’s economy beyond traditional commodities, the IDB is providing $15 million to support the expansion of global services exports. This operation aims to increase the availability of digital talent, attract investment in the knowledge economy, and strengthen public-private coordination for sector growth.

This program is particularly timely as Chile positions itself as a hub for high-value services, including IT, software development, and remote business operations, contributing to employment opportunities in emerging sectors.

4. $15 Million for Sustainable Infrastructure in Rapa Nui

A unique and culturally significant part of the agreement is a $15 million operation focused on improving water and electricity services in Rapa Nui, also known as Easter Island. The initiative will increase service efficiency, support the diversification of energy sources, and ensure sustainable utility operations.

The project is expected to directly benefit over 3,800 local utility customers and indirectly support the island’s tourism-driven economy, which relies heavily on reliable public services and infrastructure.

IDBImpact+ and the Future of Development Finance

These agreements also reflect the IDB’s broader institutional transformation through the IDBImpact+ initiative, which includes a new Institutional Strategy and revamped business models for its private-sector arms, IDB Invest+ and IDB Lab+. These changes are designed to strengthen the Bank’s role as the leading multilateral development bank for private-sector engagement in Latin America and the Caribbean.

The reforms aim to improve the Bank’s responsiveness to member countries’ evolving needs and increase its impact through smarter partnerships, more flexible financing tools, and greater alignment with global development goals.

A Shared Commitment to Progress

Chile's Minister of Finance and IDB Governor Mario Marcel highlighted the importance of the partnership, stating, “These operations reinforce Chile’s strategic objectives to build a more equitable, green, and innovative economy. Through this collaboration, we will not only address present challenges but also lay the foundation for long-term prosperity.”

With these new commitments, the IDB and Chile reaffirm their shared vision of inclusive, sustainable development—advancing reforms and projects that benefit not only the economy but also communities, the environment, and future generations.