The Central American Bank for Economic Integration (CABEI) and the Green Climate Fund (GCF) signed a financing agreement for the Bio-CLIMA Project for 64 million dollars, with the objective of promoting forest conservation and restoration in the natural reserve of the Bosawás and in the biosphere of the San Juan River in Nicaragua.

This initiative will contribute to sustainable development with low emissions through the transformation of extensive livestock farming, agriculture and sustainable forest management, integrating the conservation of ecosystem services to increase the resilience of indigenous peoples and local livelihoods.

The total cost of the project is 116 million dollars, the FVC will contribute 64 million, of which 38 million are as a loan to the Government of Nicaragua and 26 million as a donation, while CABEI will finance 44 million dollars through its Program for the Reduction of Poverty and Economic and Social Exclusion (PRPEES). In addition, there will be a donation from the Global Environment Fund (GEF) for 8 million dollars.

The GCF loan has a 0% fixed annual interest rate, meanwhile when considering also CABEI and FVC loan resources, the final conditions have an annual weighted interest rate of 0.81% and a 40-year term including a 10-year grace period.