A USD3.15 million grant to support the development of El Tren del Café (the Coffee Train) railway line in western Colombia, aimed at strengthening its international market connectivity and supply chains, was approved by the Multilateral Cooperation Center for Development Finance (MCDF) Governing Committee during its meeting in Beijing on 22 October. The project will be implemented by CAF – the Development Bank of Latin America and the Caribbean.
The MCDF grant will fund preparatory activities for the construction of the 238.9-kilometer Coffee Train railway line, extending from Caimalito, a township in Risaralda department, to Caldas municipality, in Antioquia department. The project will enable the efficient movement of coffee and other freight between logistics centers in the area and Colombia’s principal Atlantic and Pacific ports, Santa Marta and Buenaventura, stimulating trade growth.
The Coffee Train project may also incorporate passenger transport services to enhance mobility, rural development, and tourism within the Coffee Cultural Landscape, which is expected to be explored during the preparation phase.
The MCDF grant will support a comprehensive feasibility study covering technical, environmental and social, legal, and financial due diligence and the structuring of the entire project to ensure it satisfies the standards required for financing by CAF and partners.
Financial contributions from the governments of Antioquia, Caldas, and Risaralda will also fund due diligence activities, but they will not be co-mingled with MCDF’s grant for administrative efficiency.
Contact
David Hendrickson
Senior Communications Officer
Mobile: +86 185 0114 6758
david.hendrickson@themcdf.org
