Building Sustainable Territories a Model That Makes

AUGUST 2018 N o . 07 PENSAMIENTO URBANO PENSAMIENTO

BUILDING SUSTAINABLE TERRITORIES A MODEL THAT MAKES

BOGOTÁ D.C. BOGOTÁ DREAMS COME TRUE ISSN 2463-042X ISSN AUGUST 2018 TOGETHER WE MAKE IT HAPPEN

SECCIÓN

NO. 07 PU 1 / 1 Rincón del Mar, San Onofre village, Sucre PHOTO: Cámara Lúcida-Felipe Mesa WE SUPPORT SUSTAINABLE PROJECTS CONTENTS COVER PHOTO: Luis Felipe Osorio

EDITORIAL...... 5

NEWS...... 7 Challenges facing urban development and alternatives for financing them ...... 20 INTRODUCTION Development banks in Building citizenship with “Development and peace Colombia...... 22 live plans and tactical town are built from the regions”. Mauricio Cárdenas planning...... 38 Santamaría...... 8 PLANNING TERRITORIES Optimism in Davos...... 12 Without regional planning FINANCING SUSTAINABLE there can be no sustainable PROJECTS OECD: benefits for local development...... 26 development banking...... 14 Financing: the key to regional Cities at the forefront...... 30 FDI and resources for development...... 42 sustainable development .... 16 Colombia’s future depends The region’s partners...... 44 on the effectiveness of its First-tier banking support ..46 metropolises...... 34 Votes of confidence from A model to bridge gaps...... 36 around the world...... 48

IINSTITUTIONAL International cooperation. EXECUTE WORKS Findeter in figures...... 68 Findeter’s partners around FOR PEOPLE the world ...... 50 Innovation and knowledge From financing to management...... 70 Sustainable bonds to save execution ...... 60 the planet ...... 52 Portfolio of products and Inclusion for building social services ...... 72 IR seal: good corporate fabric...... 62 practices ...... 54 A transformation exercise, Findeter is committed to the COLUMN step by step...... 66 SDG in Colombia...... 56 The X factor in development banking...... 74

AUGUST 2018 TGT WE MAKE T A DIRECTOR GENERAL MANAGER Alejandro Torres Parra Sandra Suárez Pérez [email protected] COMMERCIAL MANAGER GENERAL EDITOR Janneth Márquez CENTRO Nicolás Peña Ardila DE INNOVACIÓN COMMERCIAL DIRECTOR Y CONOCIMIENTO EDITORIAL COORDINATOR Felipe Lezama Natalia Perdigón Beltrán [email protected]

EDITOR PUBLISHING HOUSE FINDETER PRESIDENT José Luis Barragán Proyectos Semana S.A. Tel.: 646 84 00 Rodolfo Enrique Zea Navarro PROOFREADING Publicacionessemana.com Ángela Delgado SECRETARY GENERAL Natalia Ocampo PRODUCTION DIRECTOR Fabián Elías Paternina Martínez Orlando González Galindo ART EDITOR Andrés Gómez Posada PREPRESS EDITORIAL COUNCIL Publicaciones Semana S.A. Ana María Palau Alvargonzález DESIGN PRINTING Vice-President, Planning Helber Guerrero Rubiano Martha Ayde Arias Quad Graphics S.A.S. Diana Jimena Pereira Bonilla César Benito Lozano Printed in Colombia Manager, Planning and Administration María Fernanda Ponce Publicado en Bogotá Rodrigo Lozano Suaza Miguel Montenegro Coordinator, Center for Innovation and Knowledge Erika Andrea Delgado Moncayo DIRECTOR OF PHOTOGRAPHY Communications Director Mario Inti García Claudia Salamanca Velásquez Communications Management PHOTOGRAPHY EDITOR María Eugenia Rubiano Sánchez Clara Moreno Head of Marketing PHOTOGRAPHY AND PRODUCTION María González Buitrago Carlos Vargas y Andrea Lozano Leader, Publications, and Issue Coordinator TRANSLATION Michael Sparrow

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ACKNOWLEDGEMENTS

Laura Román, María José Zuluaga, Fernando Carrero, Natalia Fajardo Hernández, Paulina Ocampo, Carolina Farfán, Lily Torres Hernández, María De Los Ángeles Char, Diana Marcela Niebles, Liliana Castillo, Ximena Sánchez, Magda Esperanza Parada, Nicolás Vila, Sergio Mosquera, César Nigrinis Name, Dajibys Martínez, Vanessa Marín, Alba Mogollón, Patricia Vírguez, Blanca Ruth Azcárate, Jaime Alejandro Urrego, Carolina Romero, Marcelo Restrepo, Julián Castro, Juana Leal.

AUTHORS OR INTERVIEWEES Mauricio Cárdenas Santamaría, Pedro B Ortiz, Luis Carranza Ugarte, Rodrigo Armando Lara, Guillermo Alfonso Jaramillo, Marcos Daniel Pineda, Rodrigo Lozano Suaza, Juan Manuel Robledo, Úrsula Sola de Hinestrosa, Beatriz Puello, Jean Francisco Duque, Richard Martínez, Daniel Sanabria, María Paz Uribe, María Fernanda Ghisays, Andrés Felipe Sánchez, Edgardo Álvarez, Alejandro Callejas, María Claudia Valencia.

©Proyectos Semana S.A./18, Colombia All rights reserved. This magazine may not be reproduced either wholly or in part without prior authorization from Proyectos Semana S.A., Carrera 11 No. 77A-65, Bogotá, Colombia. PBX 646 8400 EXECUTE EXECUTE FINANCE, PLAN, FINDETER: with a supra-municipalwith such perspective, as Sabana have drawn exercises action, of incorporating plans up tous reach for cities, which 51intermediate we 28of program, enabling and the Emblematic Cities support, Interamerican program, Development with Bank Cities that we implemented and the Competitive Sustainable from was It inclusive this development. cornerstone and balanced to achievinga view sustainable, aplanned, with projects, and long-term medium- strategic short-, aroad and we vision, design with map a region-based for building and opportunities strengths the principal development products.integrated regional water, education and due housing to and ourfinancial economy sectors like to more be inpriority dynamic the enabling Colombian inthe regions, public policy which the national can implementgh government to us considered led has be aneffective vehicle throu- for technicalwellbeing assistance Our their people. outprojects that generate that tions so cancarry they them comprehensive, offering - solu gions, sustainable themselves. on the regions based solutions ting and genera - and opportunities, needs identifying gions, their re planning leaders- local with and authorities, gradually has model matured we as The have worked threewith cornerstones: finance, and execute. plan, and to and I this end we devised that transforms into regions territories, sustainable thatsition would convert into us adevelopment bank IT WAS IN WAS IT cornerstone, PLAN, iswhere we identify cornerstone, first PLAN, Our We the re of have- the partner become strategic 2010that the we tran at Findeter began - mplemented a model a mplemented axis, with investments with axis, totaling 35 Centro and the (11municipalities) Sincelejo-Corozal Rodolfo Enrique Zea Navarro, President, development and wellbeing processes for inhabitants. ing executed that leverage and long-term medium- creative, resulting- be inprojects cultural industries, mobility, urban transformations, and green growth ves on transverse ourworking like issues sustainable our sector invol also planning needs, regional ting - technical advice Plans. Use for Provincial Land program, and Opportunities of the Land Diamond, and Santanderssuch the as initiatives Caribbean throughmic development planning, and urban-rural econo local - programs or strategies, complementarity for andregions) implementing territorial designing provincesbuilt-up areas, associations, and municipality provided insupra-municipal processes planning (large indisbursements. pesos and 1.9trillion fied In order to achieve greater- when mee integrality levelNotable isthe assistance at we regional have FINDETER. trillion pesos pesos trillion WE SUPPORTSUSTAINABLEPROJECTS identi AUGUST - 2018 PHOTO: FINDETER PU notable among whichnotable are more of the construction than country, involving atotal investment pesos, 8.7trillion of and 29provinces in291municipalities projects around the ture sphere to us inthe assist enabled execution has 864 of infrastruc alliance inthe multisector social responsible. This NPD andInterior, ICBF, DAPRE, Coldeportes, mainly, are the of Culture, Ministry of Education, of Ministry Ministry Housing, of programs for like the Ministry which entities national government frastructure works included inpriority fiscal consolidation (888 thousand million consolidation pesos). (888thousand fiscal and recreation,million pesos), culture, environment and (229 thousand innovation pesos), (2.8 trillion and IT energy (4.3 water and basic sanitation housing, pesos), tion (5.3trillion country,- insuch sectors infrastructure as and transporta 18.3 2010and June 2018we disbursed thus Between services. tiveness more and improve dynamic the provision basic of - competi infrastructure that projects make regional portant facilitating credit the of mobilization funds to finance im- and operational skills to bring to fruition the executionand in operational of to to fruition skills bring circle and isthe area where we have developed the technical trillion pesos), health pesos), and education pesos), (5.3 trillion trillion cornerstone, FINANCE, involves in us cornerstone, FINANCE, second Our Findeter cornerstone, EXECUTE, closes the the closes third Findeter cornerstone,The EXECUTE, in funds in 414 municipalities around the around in414municipalities infunds pesos the trillion EDITORIAL 6 /7 - - centers, among other high social impact projects. centers, social amonghigh other integration and 19libraries 38citizen five, 50parks, of age 51developmentclassrooms, centers for children to up the 191 education overestablishments, 544 41 schools with TOGETHER WEMAKEITHAPPEN!. a model thata model makes dreams come true. to generateresults our efforts of wellbeing for people: the model for andlain highlight our actions and the while respecting the characteristics each of region. the private sector and academia, authorities, local theces national and government, actions between dination, forces, ajoining of resour of and asharing inpeople’s tosolution the growth requires needs coor more whichall of benefited than 14million Colombians. water and waste 60drinking plus water treatment plants, water storage 93,000cubicdrinking meters, of capacity atotal 96storageand for with of tanks the construction systems, lometers inwater pipeline of and sewage supply provided technical assistance for- the 1,154ki laying of families, and inthe water sector we and sanitation basic vulnerable, displaced which andhomes, poor benefited issue of Urban Thought we want to exp UrbanIn thisissue of Thought we appreciate adevelopment that bank, theAs over the building of 122,000 We supervised also

PHOTO: FINDETER

about Findeter Find out more - - - WE SUPPORT SUSTAINABLE PROJECTS

IBAGUÉ, MANIZALES AND PEREIRA NOW HAVE MOBILITY AND PUBLIC SPACE PLANS These plans produced by Findeter form a road map for the development and competitiveness of cities PHOTO : Archivo Semana and include various projects that will benefit cities in terms of overall solutions for improving the local inhabitants’ quality of life. As far as mobility is concerned, they propose initia- MONTERÍA COMMITS tives like introducing strategic public transportation TO BEING A systems with integrated cycleways aerial cablecar SUSTAINABLE CITY routes where transfers are free and transportation Montería is part of the Sustainable networks that include escalators or, in the case of and Competitive Cities program hea- Ibagué, elevators. ded by Findeter and is working on strategic projects to improve competitiveness and productivity in the area. Initiatives being undertaken by COMPTROLLER’S OFFICE GIVES FINDETER Montería City Hall, with support from FINANCIAL RESULTS A FAVORABLE RATING Findeter, include setting up the coun- The control entity conducted its annual audit of Findeter’s fi- try’s first river transportation system, nancial statements, including its financial situation, profit and Línea Azul, which aims to exploit 14 Semana PHOTO : Archivo loss statement, changes in shareholder equity and cash flow kilometers of the River Sinú in order statements for 2017, as well as budget information, and no to connect north and south Montería findings were revealed. by means of 15 landing stages, and As far as the internal financial control evaluation was concerned, producing the detailed design for the the rating was 1.0, which corresponds to ‘efficient’, since, to quote traffic light system and Integrated the Comptroller’s Office, “the adequate design of controls and the Control Center, with a view to pro- effectiveness of these in the financial process were evident”. gressing toward sustainable mobility.

MEDELLÍN: TRANSPORTATION LEADER : Archivo Semana : Archivo PHOTO

FINDETER SUPPORTS INFRASTRUCTURE The acquisition of 22 new trains for Medellín Metro WORKS IN BARRANQUILLA involved an investment of 380 thousand million pe- Construction of the promenade along the riverbank and sports venues for sos, 55 thousand million of which were financed by the 2018 Central American and Caribbean Games is one of the City Hall Findeter. One of the Metro’s main aims is to meet Development Plan projects that has been financed by Findeter. In addition growing demand, and to this end, maintenance work to these projects, as at May the company had disbursed 222 thousand has been carried out on the trains and the fleet has million pesos for building, refurbishing and maintaining education facilities been enlarged so that journey frequencies can be in the city, building the riverside promenade, the green corridor and River improved. The Metro carries an average of around a Avenue, resurfacing roads under the Streets for Life program, and expan- million passengers per day on its two lines. ding education facilities in neighborhoods like La Esmeralda, Siete de Abril, Santo Domingo de Guzmán, Las Malvinas and Las Américas.

AUGUST 2018 “Development AND PEACE ARE BUILT FROM THE REGIONS” This is how Mauricio Cárdenas Santamaría, Minister of Treasury and Public Credit, explained the role that local financing plays. In an interview with Pensamiento Urbano, he also referred to the importance of stimulating a regional approach to implementing public policies.

ALTHOUGH COLOMBIA has PENSAMIENTO URBANO: Sustainable Development Goals achieved some of the highest eco- HOW HAS COLOMBIA BRINGING (SDG) that do not duplicate gov- nomic growth rates in its history in THE 2014-2018 NDP INTO LINE ernment efforts or lead to excess the last decade, with hitherto un- WITH THE 2030 GLOBAL AGENDA costs. And fourthly, it strengthens heard-of figures in foreign trade and AFFECTED THE COUNTRY? the long-term vision of the NDP direct foreign investment, the coun- MAURICIO CÁRDENAS: and its various components. try still needs to overcome many Bringing the 2014-2018 NDP in- challenges before it can compared to line with the Global Agenda has P.U.: WHERE DOES THE BIGGEST with first world countries. had many benefits for the country. CHALLENGE LIE, IN TERMS OF The 2030 Agenda, which was Firstly, having the NDP in line with FINANCING, FOR ACHIEVING THE approved by the United Nations the Development Agenda simpli- AGENDA’S GOALS? General Assembly in 2015, stressed fies international cooperation M.C.: It lies in the vast scale of the the sustainable development chal- processes and also processes with financial and non-financial re- lenges that the world is facing, in- other actors, since it makes it easi- sources that need to be mobilized if cluding Colombia. With a view to er to ensure that national priorities those goals are to be achieved. This meeting these challenges, progress and needs coincide with the inter- manifests itself in many smaller is being made on strengthening de- ests of external cooperating par- challenges that we have to deal velopment policies and financing. ties and other actors. Secondly, it with if we are to meet that big chal- Pensamiento Urbano talked enables the Regional Development lenge successfully. These include about this subject of general interest Plans of provinces and municipal- increasing tax collection without with the Minister of Treasury and ities to be brought more closely affecting the country’s competi- Public Credit, Mauricio Cárdenas into line, and it is envisaged that tiveness, in terms of both produc- Santamaría, who also referred to the it will help stimulate continuity in tion in Colombia and attracting impact that the new General Royalties regional entities over various elec- national and foreign investment, System (GRS) will have on the re- tion periods. Thirdly, it enables and also reducing corruption, con- gions, the Peace Agreements and the the country to devise follow-up tinuing to increase efficiency in post-conflict, among other matters. schemes for the NDP and the public expenditure, reducing tax

INTRODUCTION PU 08 / 09 WE SUPPORT SUSTAINABLE PROJECTS

better represented and have a greater Mauricio Cárdenas influence on their development. And Santamaría, it makes it possible for these policies Minister of Treasury to bridge gaps and speed up regional and Public Credit. “The biggest financing development, especially in regions challenge for that have benefited least from the achieving the country’s economic growth. 2030 Global Agenda goals lies in the vast P.U.: HOW EFFECTIVE IS THE scale of the LOCAL FINANCING OF INVESTMENT financial and INITIATIVES IN REGIONAL ENTITIES? non-financial resources M.C.: Investments by development that need to banks have had a positive effect on be mobilized regional entities because the work for achieving those goals”. that is being done - education and road infrastructure, water and sewage systems - has helped to boost the economy by creating local jobs and having materials bought local- ly. Improving infrastructure always evasion and avoidance and illicit means bringing development to financial flows out of the country, areas that have historically been reinforcing international coopera- overlooked because of a conflict tion on tax matters, and creating that has finally ended. mechanisms for mobilizing more private resources, especially to- P.U.: WHAT ROLE HAVE DEVELOPMENT ward sectors that are traditionally BANKS PLAYED IN THE REGIONAL less attractive for private investors. ENTITY FINANCING PROCESS? M.C.: In Colombia there are P.U.: HOW HAS THE COUNTRY banks, such as Financiera de BENEFITED FROM STIMULATING THE Desarrollo Nacional (FDN) and REGIONAL APPROACH IN PUBLIC Findeter, which specialize in of- POLICIES CENTERED AROUND fering project financing solutions BRIDGING THE PRINCIPAL GAPS AND that promote regional develop- DEVELOPING THE REGIONS? ment. The essential goal of these M.C.: Stimulating a regional approach institutions is to provide compre- to implementing public policies hensive solutions which bridge brings many benefits in terms of gaps in the financial market and effectiveness and economic perfor- help mobilize sources of finance mance in the regions those policies toward production projects that are aimed at. It means that policies encourage regional development can be tailor-made to suit the specif- in key sectors like infrastructure. ic characteristics and needs of each These entities also offer advisory, region, thereby increasing their ef- management and overall project fectiveness and impact. It makes the structuring services, so that re- policy implementation process more gional entities can have a part- democratic and participative, be- ner with high technical qualities,

PHOTO : Archivo Semana cause communities feel that they are thus enabling them to execute

AUGUST 2018 well-structured projects that will result in resources being used efficiently and regions being developed that are sustainable and more competitive.

P.U.: WHAT HAS THE RESULT OF INTRODUCING PEACE CONTRACTS BEEN? M.C.: The National Planning Department’s Peace Contracts have become a crucial tool for implementing peacebuilding policies and projects in Colombia. With investments in 1,432 projects over the next four years totaling COP 9,295,000,000, they have begun to benefit four million people in 164 municipalities in seven provinces where the armed conflict halted economic development and intensi- fied poverty. The Peace Contract is a strategic instrument for coordinat- Left to right: ing projects and sources of finance Findeter President and electricity networks, schools, cent in 2017. Moreover, the big against the background of the Rodolfo Zea, health centers, roads, farming sector winners in terms of regional entity Framework Plan for Implementing Sala Fundadores infrastructure, agricultural projects, investments financed by royalties President the Peace Agreements. It is also a Guillermo cattle raising and rural housing. have been the transportation, ed- focal point for synchronizing insti- Cárdenas, CES ucation, science and technology, tutional and financial efforts during University Principal P.U.: WHAT EFFECT HAS THE NEW drinking water and basic hygiene, Jorge Osorio, GENERAL ROYALTIES SYSTEM the transition toward a scenario of and Minister of and housing sectors. stable, lasting peace in the country. Treasury Mauricio HAD ON REGIONAL ENTITY FISCAL Cárdenas. PERFORMANCE? P.U.: RECENTLY, YOU SAID THAT P.U.: HOW HAVE THE REGIONAL FUNDS M.C.: On average, the General EDUCATION IS HINDERING DE- FOR PEACE CONTRACTS WORKED? Royalties System (GRS) has pro- INDUSTRIALIZATION. WHAT IS THE M.C.: 55.7 per cent of the COP vided half the capital income of BIGGEST INVESTMENT ACHIEVEMENT 9,295,000,000 that are to be invest- regional entities, from the start. FOR DEVELOPMENT IN THIS FIELD IN ed in peacebuilding in Bolívar, Sucre, This has been 13 trillion pesos per THE REGIONS? Meta, Guaviare, Guainía, Caquetá year, on average, between 6 and 7 M.C.: Because the education bud- and Valle del Cauca provinces, equiv- trillion of which have come from get has risen considerably (since alent to COP 5,175,947,000, will be the GRS. The pattern has been 2014 it has been number one contributed by the nation. A further less constant over time in terms of on our budget scale), education 31 per cent, COP 2,880,684,000, will expenditure, due to the biannual coverage, mainly in the techni- be provided by the provincial gov- nature of the System. However, cal, technological and university ernments and municipalities where between 2014 and 2017, 25 per fields, has increased. This trans- Peace Contract works will be carried cent of regional entity investment lates into more jobs since, because out. Priority projects in the 164 mu- was financed from royalty funds, of this investment, more people nicipalities, where funds are already on average, the exact figures being are ready to enter the job mar- being injected, include water, sewage 31 per cent in 2015 and 17 per ket and to contribute to regional

INTRODUCTION PU 10 / 11 WE SUPPORT SUSTAINABLE PROJECTS

sell their produce, and these areas the other 50 per cent to the Peace will therefore gradually develop. Allocation Fund (for projects defined by the Peace OCAD). P.U.: HOW DID THE ‘PEACE OCAD’ PLAN Adjustments were later made to “The NPD’s THAT YOU HAVE LED COME INTO BEING the 2017-2018 GRS budget so Peace IN ALL THIS? Contracts have that seven per cent of this in- M.C.: The General Royalties System become a come could be allocated, equiva- (GRS) is unquestionably a funda- crucial tool for lent to 510.78 trillion, and this implementing mental instrument for implement- peacebuilding sum is now available for alloca- ing the Final Agreement, not just policies and tion to the investment projects because it is a source of finance projects in approved in the Peace OCAD. Colombia”. for investment in the regions but because it is based on a shared vi- P.U.: WHAT HAS THE COUNTRY’S sion that peace and the country’s GREATEST DEVELOPMENT FINANCING economic, social and environmen- ACHIEVEMENT BEEN? tal development are built from the M.C.: One of the biggest has been regions, by consensus at all levels achieving financial closure for of government. The national gov- eleven fourth-generation conces- ernment therefore proposed that sion projects. These now have firm a series of transitory measures commitments totaling around 18

PHOTO: FINDETER be included in Article 361 of the trillion pesos from local and inter- Political Constitution for the next national banks and institutional 20 years that will allow seven per investors. The new institutional development because they have cent of GRS income and 70 per framework for evaluating projects received a better education. cent of the financial returns on with entities like the National the System’s Sole Account to be Infrastructure Agency, and also the P.U.: IN THE MEDIUM TERM, HOW CAN allocated to peace, to investment new legal framework for public-pri- WE GUARANTEE THAT DEVELOPMENT projects that will meet the chal- vate partnerships established in POLICIES WILL BE ADHERED TO IN THE lenges imposed by complying with Law 1508 of 2012, have been key POST-CONFLICT PERIOD? and implementing the Final Peace to simplifying implementation of M.C.: There is a legal framework, Agreement and providing repara- the Project Finance scheme and endorsed by judicial bodies, which tions for victims. Priority is given thus financing infrastructure de- obliges us to comply with the to regional entities most affected velopments in the country. Peace Agreements in the most ef- by the armed conflict. ficient manner possible. Because P.U.: AND THE BIGGEST CHALLENGE? of this, we drew up a highly de- P.U.: HOW MUCH HAS BEEN LEVERAGED M.C.: Looking to the future, and tailed timetable for the disburse- THROUGH THIS INITIATIVE? given the needs set out in the ment of funds down to 2031, M.C.: Initially, COP 1.4 trillion Intermodal Transportation in order to effectively adhere to in royalties were transferred Master Plan, the principal financ- this scenario that will benefit the from the Science, Technology ing challenges will continue to countryfolk who have suffered and Innovation Fund to fi- be related to financing the major most from the ravages of war. nance transportation infra- infrastructure plans. It is there- The principal method for going structure projects, 50 per cent fore important for projects to go about bridging the gap between of this sum to the Regional on being well structured and to be city and countryside is also under- Development Fund (for proj- to the highest standards, so that way, since the investments we are ects defined by the Regional local and international financiers making in minor roads will mean Collegiate Administration and can be confident when they invest that it will be easier for farmers to Decision Bodies - OCADs) and in these types of initiatives.

AUGUST 2018 The main message related to the recovery in the global economy after the crisis in Optimism 2008. Governments were also urged to prepare workers IN DAVOS for the future, against a background of jobs being lost due to technological change.

AS HAS BEEN THE TRADITION since 1991, Davos-Klosters, in northern Switzerland and the highest town in the Alps, was the meeting point for the presidents of the world’s most powerful countries, global production sector leaders, influential media directors, and international guests from the five continents, including Colombia. At the World Economic Forum (WEF) from January 23 to 26 last, there were over 400 working sessions that were attended by around three thousand participants, including 45 heads of state and seventy leaders of international organizations, who discussed matters relating to the present and the immediate future on the five continents. At the end of the four days of delib- erations, details were published of the conclusions drawn and the challenges facing governments and the global production sector in the coming years. and 2019 made the day before the sector should provide the neces- The main conclusion in terms Forum started by the International sary guidance for ensuring that of the economy was that global pro- Monetary Fund (IMF). the millions of workers who, it is duction had improved for the first As far as the labor market is envisaged, will lose their jobs as time since the 2008 financial crisis. concerned, reference was made a result of technological chang- This was based, among other factors, to the need to prepare workers es brought about by the Fourth on the 3.9 per cent per year global for the future. This means that Industrial Revolution will be able GDP growth projection for 2018 governments and the production to find a new one that is well paid.

INTRODUCTION PU 12 / 13 WE SUPPORT SUSTAINABLE PROJECTS

On matters relating to the the base of the social pyramid to this end, the UpLink platform was environment, safeguarding the access capital for setting up their launched, which will set out to es- oceans and all marine resources own business venture. calate entrepreneurial initiatives in was the challenge that was put The conclusion reached on this respect. Undertakings will be forward. To this end, a 4.5-mil- technological matters by the able to contact multinationals, in- The Forum was attended by over lion-dollar contribution by the Davos Forum was that the digi- vestors and academia, thus making three thousand Swedish government and the UN tal gap needs to be bridged. This it easier for them to do their work participants, was announced. Another con- means that countries should look on this market. including 45 heads of state clusion reached in this area was for ways to achieve universal in- Those present were also urged and 70 leaders. that the question of waste man- ternet access on the five conti- to strengthen ethics in science. agement and pollution should nents. An initiative carried out by The group of young scientists who be looked at. Here, details were the government of Peru was high- attended the Forum presented an revealed of the Platform for lighted in this respect. Interdisciplinary Code of Ethics, Accelerating the Circular Economy Another final message re- the aim of which is to safeguard (PACE), which will deal with mat- lated to the fight against cyber high behavior standards and pro- ters relating to the pollution threats. Since this is considered vide clarity in social norms so that caused by electronic and plastic to be one of the fastest-growing they can work independently. waste, which currently represents problems, the Forum established There was also a call to en- more than nine per cent of total a World Cyber Security Center, sure sustainable protein produc- recycled waste. tasked with creating a safe oper- tion. From now on, the aim is to On gender issues, world gov- ating environment for such new identify how to transform future ernments were urged to continue technologies as artificial intelli- safe meat and protein production, to bridge gaps in this field. The gence and drones. in order to guarantee that these Davos Forum celebrated the fact The fight against financial are affordable and sustainable that Chile had become the fourth crime and modern slavery was as demand increases rapidly and country in Latin America to join presented as a phenomenon the planet moves toward having this global initiative. It was also that affects the finances not just a population of nine thousand pointed out that a further five of countries but also of their in- million by 2050, as the United countries are expected to join over habitants. An initiative to focus Nations stated many years ago. the course of this year. on combating money laundering Finally, the Forum turned its A further message on this sub- and people trafficking was thus attention to air transportation and ject was addressed to the produc- presented, with a view to creating concluded that there is a need to tion sector. The Forum concluded awareness among world leaders, improve passenger safety. A digital that female entrepreneurs should fostering the exchanging of infor- passenger identity prototype was be empowered. The first step in mation, and improving compli- accordingly presented, which in- this direction was taken by India, ance practices. corporates emerging technologies with a contribution of 100 million The conclusion reached with like biometrics and blockchain, the

PHOTO: AFP Rupees toward enabling women at respect to the media was that fake aim being to maker flying safer. news has become a global phenom- In an atmosphere of op- enon. An initiative was thus pre- timism, the World Economic The message about generating sented that sets out to fight for the Forum issued a final message to added value was that innovation eradication of this type of informa- the effect that production activ- needs to be speeded up. To this tion, and an opportunity was creat- ity on the planet is growing. The end, the UpLink platform was ed for promoting the dissemination countdown has thus started to launched, which sets out to of high-quality news content. Davos 2019, when progress on help escalate entrepreneurial The final message about gen- each of the conclusions drawn initiatives in this respect. erating added value was that inno- and challenges raised this year vation needs to be speeded up. To will be reviewed.

AUGUST 2018 BENEFITS FOR LOCAL OECD: DEVELOPMENT BANKING As Colombia joins this organization which was formed in 1961, it is envisaged that these types of institutions will have greater access to international financing, thus ensuring increased efficiency, more transparency, and changes on their boards of directors.

IT WAS ONE of the first aims that 25, 2018, he announced that big leagues!”. This was the mes- Juan Manuel Santos expressed the Organization for Economic sage the President tweeted, and it when his initial period as President Cooperation and Development neatly summarizes, albeit without began, and it will be one of his last (OECD) had agreed to Colombia mentioning it, the fact that the na- achievements as his second man- becoming its 37th member. tional government completed the date draws to a close. On August “Seven years of hard work 23 tasks set by the organization for 13, 2010, he made this challenge to get this excellent news: the the country to become the third in to the country’s industrialists at OECD Council has approved Latin America to join, after Mexico an ANDI Assembly and on May Colombia’s entry. We’ve joined the and Chile. What does this mean?

INTRODUCTION PU 14 / 15 years, Colombia years, Colombia After a process After aprocess joined OECD. joined OECD. lasting eight lasting eight has finally has finally

PHOTO:AFP BBVA Economist Chief Bank joining OECD.try According to the coun of - reapwill the benefits inColombia Development Banking DEVELOPMENT BANKING down”, academic the added. them the of to day turn ernment hard for the gov very be will it on boarddations them, or reject are free to take either recommen- countries made. be will Although recommendationswhen nization by the- orga visits regular be will and health policy,policy and there policy, policy, regulatory inflation economic of challenges in terms development. of fields invarious fornarios the country sce- new up in 1961, opens formed whiching this was organization, University, that join - explained Economics Faculty at Javeriana States) and isaprofessor inthe the University Boston (United of doctorate Economics in from market. securities toexample, join and remain inthe and private forthat entities want, inpublicto governance corporate ondemanding matters relating and be statistics, its in publishing trade, international of to strict be isachievedcompetition interms have will to ensure thattry free the obligations, counamong other - challenges for the future”. raisesat it time the various same several of years, and over aperiod done has the workof the country isrecognition step. It important practicesto agood clubisavery acceptedbelieves that in- “being Director Pérez Camila Marulanda “Colombia isfacing enormous Ferrari, who holdsCésar a Pérez the is of opinion that Fedesarrollo Assistant - ed out thated “there could more be Reyes point Alejandro Banking, for Developmentplications local reinforced. be will institutions these of transparency thated allmatters relating to the He madebe more add- efficient. including Development Banking, system, financial that the country’s to recommendcould expected be fessor Ferrari, the organization he explained. two variables”, inthese stability maintain help membership could to expected be adespite member, being not fits - bene of enjoyedhas types these Obviously, that Colombia given factors for Development Banking. interest rates, which are two key and incuttinginvestment flows improvementsignificant in foreign OECD,of shows that there a can be members American the only Latin (2010)and Mexico (1994),Chile of experience “The institution. of inby this type engaged activities reinforces it securities”, able the liberal,essence of market-favor Colombia’s to the commitment from for quality “a of being seal that believes apartCampos Research Felipe Iván Manager simpler and faster”, he said. allowed to butifyou pass, can,it’s have to stand inline to and wait be ifyouic toll can’t point: do so, you It’s like anelectron through passing - and even favorablenancing, rates. - fi special and projects, dorsements having afast route for en- getting for means it Development Banking tional funding. terms, “In specific forable accessing greater- interna avail facilities being mean better - membership will Reyes, Alejandro On the questiontheOn im- of According to Javeriana pro- ValoresAlianza Economic - - about its mission activities. mission activities. its about make more goesit it as efficient that will enjoying will benefits developmentthe bank country’s and OECD joined has Colombia boardsthese directors. of on managers, tatives portfolio of MinistersDeputy and/or represen- such as officials, ing government that there no should high-rank be recommends OECD explained, FNA and Finagro. Inpractice, she such Findeter, as Bancoldex, ing, where the state asharehold has - this kind of boards entities of on the envisaged changes canbe Director Pérez, Assistant Camila is to materialize”. in infrastructure andpolicy public icant progress that required isstill role ifthe signif here OECD with play will afundamental Banking Developmentmade sustainable. is to made are be and they to be progress tices are iffurther needed ny indicators and that prac good thereColombia are gaps- inma still remembered should be It that in projects. outvarious for carrying funding isavailable at cost abetter where better could tion arise also toprojects evaluated. be - Asitua Alejandro Reyes. Chief Economist said BBVA Bank favorable rates”, financing, andeven projects, special endorsements and route for getting having afast Banking itmeans “For Development After nearly eight years, nearly eight After According to Fedesarrollo WE SUPPORTSUSTAINABLEPROJECTS AUGUST 2018 - - - - DFI AND RESOURCES FOR SUSTAINABLE development

Jepírachi wind farm, in La Guajira province near Cabo de la Vela and Puerto Bolívar. PHOT O: Cámara Lúcida-Cesar Duque

Development Finance Institution (DFI) are more than ten million inhabitants. pioneering the financing of environment-friendly Together, they had 453 million people, equivalent to 12 per cent investments in Latin America and the Caribbean, of the world’s urban population. 16 including ones relating to urban development. of them were in Asia, four in Latin America, three in Africa and a similar number in Europe, and two in By Edgardo Álvarez cent of energy, produce 70 per cent North America. It is calculated that Secretary General, Latin of greenhouse gas emissions and by 2030 there will be 41 cities with American Association of Development Financing 70 per cent of solid waste, and in more than 10 million inhabitants. Institutions (ALIDE) them are concentrated 54 per cent Urban growth in Latin of the world’s population, a figure America and the Caribbean has that the United Nations expects been rapid since the second half of CITIES OCCUPY around two will rise to 66 per cent by 2050. the 20th century. The growth rate per cent of the Earth’s surface. According to the UN, between was over 50 per cent in the early However, they generate 70 per 1990 and 2014 the number of sixties, then rose to 60 per cent cent of GDP, consume over 60 per megacities in the world, each with in 1975, 70 per cent in 1990 and

INTRODUCTION PU 16 / 17 WE SUPPORT SUSTAINABLE PROJECTS

80 per cent in 2013. This means are required in conjunction with greater internationalization in or- a growth rate of more than 30 per the private sector that foster sus- der to assist Latin American com- cent in half a century. Figures for tainable, inclusive development. panies, attract investments, gain 2015 show that urban growth in This, in turn, will require signif- a presence on international capital the region reached 82.1 per cent, icant investments to be made in markets so as to obtain funds at the highest in the world. the different sectors, due to the lower cost, establish cooperation The world’s urban population high demand for services, jobs, agreements with national and rose from 2,300 million in 1994 investment in physical connec- international banks and finance to 3,900 million in 2014. One year tivity channels and communica- agencies with a view to promoting later it passed the 4,000 million tions and, in general, in improving bilateral trade, and provide techni- mark and it is expected to reach quality of life. This is where the cal assistance. And the fourth is 6,300 million in 2050. Present big challenge lies for Development to support the financing of en- or new cities will have to accom- Finance Institution (DFI). vironmental projects that strive modate 1,400 more people in Unlike in the last decade, for sustainable production and Asia, 900 million more in Africa countries in Latin America and protect the environment. and 200 million more in Latin the Caribbean today have less In the New Urban Agenda America and the Caribbean, ac- room to maneuver when it comes Almost half (NUA), where the official debate cording to UN-Habitat. to making the investments that of the aims to find out how local finan- Urban growth has led to so- are needed in economies to boost 3.900 cial systems, with their respective cioeconomic development oppor- development and meet people’s million city tax bases and capabilities, can tunities and a sustainable lifestyle needs. The present situation in dwellers were guarantee the necessary resourc- that today exert great pressure on the region is nevertheless differ- concentrated es for urban infrastructure and in areas with ent because the subcontinent has infrastructure and the demand for fewer than cope with the expansion of cities resources, notably in the energy, unprecedented strengths. With half a million and rapid urban growth process- education, health, transportation few exceptions, countries have inhabitants. es, the key issue is to identify and communications sectors. And more instruments available, have innovative, effective financial it has also had an impact on job strengthened their basics, and mechanisms like those the DFI creation activities, especially for have financial and monetary sys- have created and implemented to a young, empowered labor force tems that are more active. help meet all urban needs. seeking a better quality of life, Thus, because of the role the better public services, environ- THE DFI ROLE DFI play, their ability to mobilize mental sustainability, greater so- The DFI are acting on four fronts. public and private resources and cial and economic inclusion and The first is to support infrastruc- their unique position for acting ef- political participation. ture development, company mod- fectively on markets and in the re- This is occurring against ernization, product diversification, gions, they are key partners when a backcloth of recovery pros- the rise of innovative companies, it comes to implementing urban pects in the global economy (3.9 the development and reinforce- policies and facilitating the draw- per cent worldwide growth in ment of micro-, small and medi- ing-up of NUA initiatives that can 2018, according to International um-sized businesses and their be executed in a practical manner. Monetary Fund projections), but entry into international markets, The DFI in Latin America and with more uncertainty and states innovation and technological de- the Caribbean, as well as in other that lack the necessary agility and velopment, and the development parts of the world, have pioneered resources for meeting demand, of sustainable cities and of knowl- environment-friendly financing due to fiscal problems. edge and innovation. and investments even for urban If these people’s increas- The second front is to train development. 52 per cent of these ing needs for public goods and human capital through better basic explicitly contain an environ- services are to be met, state-run and technical education, with an mental financing program, line policies, programs and projects entrepreneurial vision. The third is or initiative or have a financing

AUGUST 2018 component in their ordinary pro- on hydrocarbon subsidies and an grams for such purposes. indirect one in various areas, such In the field of energy, they as environmental costs and public support company efficiency health. 146 million gallons of fu- through the implementation of el were saved between 2008 and new installed electricity generation 2015, together with a saving of 261 capacity using non-conventional million dollars in state subsidies. renewable energies. In Mexico, Sociedad Similarly, they engage in ac- Hipotecaria Federal (SHF) is carry- tions elsewhere in the region in ing out its Ecocasa program in con- other sections of the economy, junction with the Interamerican such as transportation, where Development Bank (IDB) and work is in line with the policy of KfW (Germany). This consists of changing the energy matrix and a financial incentive and techni- reducing the dependency on oil by cal assistance package to support converting vehicles to use natural housing developers as they design gas, renovating the vehicle fleet and build homes that generate and financing mass public trans- fewer greenhouse gas emissions. portation systems that pollute less. By the end of the first quarter of 2016 around 2,000 “eco-homes” SUCCESSFUL CASES had been financed, with 210 mil- In Peru, Corporación Financiera de lion dollars in loans granted during Desarrollo (COFIDE) contributed the first phase and 27,600 homes through its Cofigas program to built, which will result in at least The SCC program is an in- the natural gas-based production one million fewer tonnes of CO2 novative, multi-sector planning and consumption transformation being generated in 40 years. proposal from an overall, strategic process. This directly benefited In Colombia, Financial viewpoint, based on prioritizing 216,966 vehicle users, generating Development Territorial (Findeter) critical, comprehensive actions. impacts totaling 6,288 million is carrying out a Sustainable and The proposed plan of action for dollars, reducing carbon dioxide Competitive Cities (SCC) program each city sets out a short- and me- emissions by more than 2.5 mil- in association with IDB. The aim is dium-term strategy for achieving lion metric tonnes and bringing to identify, validate, prioritize and growth that is more sustainable, 103,300 new customers into the support the implementation of inclusive and competitive. This financial system, quite apart from strategic, transformative actions in plan is defined as a result of co- the plentiful new investments de- the country’s intermediate cities, ordinated, cooperative work by riving from the program. with a view to promoting sustain- a wide-ranging interdisciplinary In Ecuador, Corporación able, competitive development. group from the municipalities, lo- Financiera Nacional (CFN) set cal IDB specialists, and Findeter. up a Vehicle Fleet Renewal pro- Findeter provides easier gram (RENOVA), which is a joint Unlike in the last decade, loans than private banks do and initiative with the private sector countries in Latin America it can leverage funds from royal- that aims to improve efficiency in and the Caribbean today ties, public-private partnerships public transportation expenditure have less room to maneuver and private investments, as well (subsidy). As at June 2016, it had when it comes to making the as contributions by the munic- financed more than 10,000 vehi- investments that are needed in ipalities themselves, which can cles and placed over 251 million economies to boost development also receive loans. dollars in loans nationwide, pro- and meet people’s needs. In Chile, Corfo has introduced viding the state with a direct saving its strategic Digital Transformation

INTRODUCTION PU 18 / 19 WE SUPPORT SUSTAINABLE PROJECTS PHOTO: iStock PHOTO:

By 2030 it is calculated that and Smart Cities program. This there will be 41 A development bank is wide- to be mobilized via special pro- represents an unprecedented megacities. Tokyo ly known on local credit markets, grams or specific lines of finance, is currently one of challenge for promoting econom- the most densely thus enabling it to easily identify and with ad hoc resources for ic growth and productivity in the populated cities, and generate public-private proj- these purposes, but as these pro- country. The aim of the various with over 30 ects and provide the necessary co- grams progress, a component is million residents. parties involved is to look at future ordination between the relevant incorporated to finance specific scenarios through projects that actors in national climate change projects, such as optimizing wa- have a bearing on productivity agendas. It also has multilateral ter use, energy efficiency, or green and sustainability and will enable funding, which acts as a counter- homes and buildings. progress to be made toward diver- part to other sources of external Passive products have been sifying production. This program funds, provides second-floor fund- devised for capturing resources could achieve a saving of 275,000 ing, which encourages risk-taking that are designed to finance envi- pesos (approximately 500 dollars) by financial intermediaries, and ronmental projects or initiatives. per inhabitant per year. grants partial loan guarantees and Development banks, espe- syndicated financing with financial cially second-floor ones, are very CONCLUSIONS intermediaries and national agen- active on capitals markets. They In their efforts to increase avail- cies with ad hoc funds. exploit the possibilities offered able financing with adequate The DFI involvement in sup- by their access to these scenarios, terms and conditions for environ- porting investments in environ- where they capture 13.7 per cent ment-friendly projects, government-friendly projects related to of their resources, on average. ments in the region have brought urban development manifests This figure rises to 25 per cent in in their development banks in or- itself in various ways. By design- the case of second-floor banks. der to boost the structuring and ing and implementing investment Viewed from another angle, these financing of climate change miti- funds and financing lines or pro- indirectly influence improve- gation and adaptation projects. grams, the DFI enable resources ments to the environment.

AUGUST 2018 of urbanization and reduce social costs. In other words, urban invest- Challenges ments should be aimed at promoting ‘accessibility’ in cities. The accessibility concept refers FACING URBAN DEVELOPMENT AND to the extent to which firms and homes are able to enjoy the oppor- ALTERNATIVES FOR FINANCING THEM tunities the city offers. Productivity increases when firms can hire quali- Strengthening a city’s ability to improve the wellbeing fied manpower, obtain quality ma- of its inhabitants depends to a great extent on public terials and achieve a stable demand for their products. Wellbeing impro- policy and how it manages to exploit the economic ves when people can get more and benefits of urbanization and reduce social costs. better jobs, decent housing, quality services and entertainment opportunities, and can socialize with people who share similar tastes and population growth rates since 1950, interests. The concept summarizes cities with over 200,000 inhabitants the effect that economic and social produce more than three quarters of interaction has on productivity and regional GDP but have less than half wellbeing in an urban context. An of the region’s population. accessible city reduces effective dis- At the same time, however, tances between people and compa- it is in these urban centers on the nies and boosts the benefits of the subcontinent where the highest built-up urban area. informal settlement figures are We at CAF believe that this reported. Between 20 and 30 per can be achieved by intervening

PHOTO: CAF cent of Latin Americans live in in three major spheres of policy: homes where access to services is land use planning and regulation BY Luis Carranza Ugarte precarious and, in many cases, they so that the city can grow in an or- Executive President, CAF, Development Bank of Latin America have no title deeds. derly manner, transportation in- An accessible Many cities in the region are frastructure to encourage mobility, city reduces noted for their high levels of infor- and making the real estate market effective CITIES ARE THE MAIN driving mal housing, and this, together wi- more dynamic and hence stimula- distances force behind a country’s develop- between th informal public transportation, ting access to formal housing and ment, because it is there that the people and limits access to formal job oppor- basic, quality services. most complex production proces- companies tunities for a significant percenta- The way to ensure that these and boosts ses and the ones with the greatest the benefits ge of the inhabitants. This ‘triple three aspects of policy are integrated added value are concentrated, as of the built-up informality’ (housing, transporta- in the urban environment is through well as the best job opportunities. urban area. tion and jobs) is largely responsible metropolitan governance schemes This goes a long way to explaining for the low productivity and well- that take into account the need for the rapid growth in the urbaniza- being levels that exist. regional and sector coordination. tion process in recent years, espe- How can the opportunities The absence of a strategy for cially in developing countries. that cities offer be exploited? Their integrating these three policy as- In Latin America, the second ability to improve citizen wellbeing pects in an adequate metropoli- most urbanized region in the world depends, crucially, on public policy tan governance context has thus after North America and the one and how this manages to take ad- hindered attempts by cities in the that has recorded the highest urban vantage of the economic benefits region to absorb migration flows

INTRODUCTION PU 20 / 21 WE SUPPORT SUSTAINABLE PROJECTS and grow in size in an orderly inefficiencies. On the one hand, mechanisms via national and inter- manner, and hence facilitate ac- high prices can be put down to a national banks. Our proposal is the- cess to the economic and social lack of flexibility in residential refore that they should increasingly Our proposal is opportunities they offer. properties that are available, and and effectively adopt financing ins- that govern- On the land use planning and on the other hand, average Latin ments should truments that will enable them to regulation issue, one key point is American incomes are low, which increasingly exploit changes in the value of land the fact that if cities are to grow means that only certain sectors and effecti- resulting from modifications to re- vely adopt in terms of both size and density, of the population have access to financing gulations governing its use. land use regulations need to be decent housing. When to these instruments There are various very in- made more flexible, to favor resi- problems are added an increasing that will enable teresting examples in the region them to exploit dential and mixed use, and to fo- number of migration flows to cities changes in the of where this type of policy has resee the space that will be needed in the region, informal settlements value of land been applied, such as in São Paulo, for transportation infrastructure naturally spring up that have no ac- resulting from Brazil, and attempts could be ma- modifications and public areas. When regulations cess to good-quality, basic public de to replicate them in other Latin to regulations are too strict on these matters, services and where it is impossible governing American cities. These instru- they encourage disorderly urban for people to fully enjoy the oppor- its use. ments enable two critical aspects growth without the necessary in- tunities that urban centers offer. of urban policies to be coordinated, frastructure and go part way to Financing for comprehensi- namely planning for cities to ex- explaining why house prices rise. ve policies in these three areas is pand as they grow and financing As far as mobility is concer- a major challenge. However, local the necessary water and sanitation ned, policies worth highlighting governments on the subcontinent infrastructure to allow for sustai- include ones that set out to balan- do have limited access to credit nable, inclusive urban growth. ce the private cost of private car use against the social cost, such as charging for driving in certain parts of the city and at certain ti- View of Rocinha, a favela mes of day or taxing the driving in the southern part of Rio de Janeiro, Brazil. and ownership of vehicles that pollute most. Of course, if this disincentive to use the private car is to be effective, a further set of policies is needed that focuses on increasing public transportation coverage and quality and on integrating and formalizing solutions to the informal transportation problem, which is so common in Latin American cities. It is also important that mobility infrastructure be improved and increased, especially with respect to public transport and alternatives such as cycleways and pedestrian footpaths. Meanwhile, in terms of housing policy, a significant propor- tion of the population is excluded from the formal residential mar-

ket in Latin America due to its Stock PHOTO: i

AUGUST 2018 Development BANKS IN COLOMBIA Development banks direct their efforts toward creating tools to strengthen development financing in the country. They are involved in three sectors of Colombia’s economy: agriculture, business and infrastructure.

Por Santiago Castro Gómez President, Asobancaria

COLOMBIA’S FINANCIAL sector is fundamental to the country’s economic and social development because it is tasked with transferring funds to finance production activities. In particular, while private banks are commercial by nature, development banks focus on creating tools to strengthen the financing of national development in the farming, business, exports and infrastructure sectors. Colombian development banking has made substantial progress in recent years not only in terms of financial inclusion but also in such areas as successful involvement in correcting market faults, solving information problems, segmented markets and transaction costs. Despite the farming GDP share of total GDP being lost, the farming sector continues to create a significant number of jobs. So important is it that promoting sec- Coffee plantation tor growth and innovation has be- in Chinchiná, Caldas come a prime target for our banks, PHOTO: Findeter

INTRODUCCIÓN PU 22 / 23 WE SUPPORT SUSTAINABLE PROJECTS which have worked to finance rediscount portfolio, which is as- developed such special macro-proj- Colombia’s rural areas for years. sociated with small producers, is ects as Opportunities Banking, In the public sector there are thus being used for investments Production Transformation two entities, namely Finagro, a in the sector, while the substitute Development Programs and iN-Npulsa, which second-floor bank that allocates portfolio, for working capital, is banking aim to improve production sector has thus funds to financial intermediaries ensuring continuity for projects complemented competitiveness by supporting so that these can, in turn, grant that are under way and is contrib- private technological innovation and pro- loans directly to rural produc- uting to growing the economy. banking in the moting access to credit. country by ers, and Banco Agrario which, in Finagro has also intro- promoting a As far as infrastructure proj- conjunction with private banks, duced credit lines for small, me- reduction in ects are concerned, these also manages loans for production dium-sized and large farmers information receive help, because they are asymmetries projects and the transformation through various financial en- financed by two development and expanding or marketing of sector products tities, which rediscount funds. the services banks, namely Findeter and and services. Meanwhile, establishment of the portfolio Financiera de Desarrollo Nacional According to Finagro fig- Farming Guarantees Fund (FAG) to include (FDN). Findeter offers public and small and ures, banking has had a signifi- and the National Guarantees medium-sized private entities rediscount loans cant impact on sector financing, Fund (FNG) has enabled small businesses. to finance up to 100 per cent of since farmers and rural producers producers without guarantees to the total cost of projects relating (small, medium-sized, large or access financing. to infrastructure construction, associated) in 1,016 municipali- These results reflect the acquisition of goods and imple- ties around the country benefit- efforts that have been made. mentation of new technologies in ed from loans or micro-loans in Firstly, Finagro has worked to various sectors of the economy, 2017. This means that 92.2 per expand product and service cov- such as health, drinking water, cent of the country was covered. erage by creating various credit housing, transportation and en- In terms of number of oper- lines aimed at the small, medi- ergy. These loans can be used to ations, it can be seen that while um-sized and large producer and finance various investment stag- the majority of the substitute at low-income rural women and es or as working capital or debt portfolio relates to medium-sized rural small businesses; and sec- substitution, with the financing producers, 93 per cent of the re- ondly, commercial banks have entity taking on responsibility for discount line corresponds to loans acted to promote and channel payment of the debt with the fi- granted to small farmers. At least resources to this sector. nancial sector. as far as quantity is concerned, In the case of exports, Development banking has most of the rediscount and the Bancoldex is the entity respon- thus complemented private bank- substitute credit is reaching small sible for financing the country’s ing by promoting a reduction in and medium-sized producers. On export sector and, hence, the information asymmetries and ex- the other hand, it can be seen Colombian economy’s interna- panding the services portfolio to from the value of operations that tionalization process. 70,000 include small and medium-sized most of the substitute portfolio companies received support in businesses and by offering has gone to large producers while 2017 from this bank, which dis- non-traditional sources of finance the rediscount portfolio has main- bursed 3.58 trillion pesos. The such as leasing, factoring and pri- ly been used for granting loans to bank principally finances the vate capital funds. Colombian small producers. modernization and the working development banking has thus An analysis of the break- capital needs of companies of all contributed not only to country down of credit by recipient shows sizes. Its financing concentrates growth but also to companies that the substitute portfolio has on small and medium-sized busi- of all types being able to receive mostly financed working capital, nesses, since more than half of its financing, as well as to financial whereas the rediscount portfo- total loan disbursements are to education and production growth lio has financed investment. The this segment. Bancoldex has also strategies in the economy.

AUGUST 2018 PLANNING TER RITORIES PHOTO: Cámara Lúcida-Eric Bauer Cámara PHOTO:

PU 24 / 25 WE SUPPORT SUSTAINABLE PROJECTS PLANNING TER RITORIES

Nariño Square, Pasto (Colombia).

AUGUST 2018 WITHOUT REGIONAL PLANNING THERE CAN BE NO sustainable development

Colombia’s cities and regions face the challenge This strategy is based around of achieving a sustainable, balanced and inclusive recognizing the individual characteristics of each region, its DNA, development that will improve people’s’ quality and the features of its social fabric, of life and create opportunities that transcend with a view to proposing schemes urban logic. Planning is the starting point. that will boost its assets, strengthen its finances, generate empowerment in its people and lead to dynamic competitiveness. AS FINDETER IS a Development which offers financial products By Ana Bank, it has become the regions’ that complement rediscount cred- María Palau PLANNING SUSTAINABLE REGIONS Findeter Vice- strategic partner because of its its; it also uses social innovation The rapid growth in Colombian President, support for sustainable projects models to support public and pri- Planning cities, from a current figure of 75 aimed at consolidating inclusive, vate authorities in the regions as per cent to an envisaged 85 per fair and competitive people-friend- they plan, prioritize and execute cent by 2030, has made it neces- ly territories. projects by generating local skills, sary to think of comprehensive, The Rediscount Bank to coordinating local actors and sustainable solutions that begin Development Bank transformation strengthening institutions so that with adequate planning, in order process is a result of the Integrated they can create opportunities and to be able to analyze economic, Territorial Development strategy, improve people’s quality of life. social, fiscal and environmental

PLANNING TERRITORIES PU 26 / 27 WE SUPPORT SUSTAINABLE PROJECTS

participating regions with a stra- Barbacoas Marsh, in the middle tegic plan of action and a pro- of the River spective vision for the year 2050, Magdalena. together with an investment plan for the next decade. It thus estab- lishes not only which projects are to be prioritized but also how they are to be financed. It is a road map to sustainability that integrates social, economic and environmental aspects, and the proposals take into account climate change miti- gation and adaptation criteria. 23 cities in the country are part of the Sustainable and Competitive Cities program, although it should be stressed that there are two supra-municipal commitments: Sincelejo-Corozal and the Cúcuta Metropolitan Area (six cities). Fifteen cities already have their investment plans and plans of action, while plans for a further eight cities are currently being drawn up, including those

PHOTO: Archivo Semana for the Cúcuta Metropolitan Area. The same methodological scheme applies to a further 28 cit- conditions in the regions. This designed, with details of the stra- ies that are part of the Emblematic will enable strategic actions to be tegic projects, investments and Cities program. These are defined devised that will create opportu- associated financing that will be as cities where intervention is nities, jobs and access to health, required if a positive impact is to either strategic or a priority, be- education, public services and so- be made on inhabitants. We have built cause of their development indica- cial infrastructure, in line with the Based on the premise that the a prospective tors, their geographical location or vision of the their regional assets. The goal is to respective environmental assets, regions know best exactly what region and and also financial sustainability assets they have, Findeter’s lo- designed a bridge existing gaps and make the for leveraging investments. cal, supra-municipal and regional road map region ready for sustainable devel- In order to achieve this goal, development programs are con- with strategic opment. Cities taking part in this projects Findeter has designed various re- structed from and for the region, that have program include Buenaventura, gional planning programs that aim in conjunction with its respective a positive Tumaco, Quibdó, Magangué, to provide the country’s cities and authorities, so that comparative impact on Aracataca and Barrancabermeja. people. regions with technical assistance advantages can be designed. Based on the macro-planning in identifying, together with local At local level, the Sustainable exercise resulting from these pro- actors, the principal strengths and and Competitive Cities program grams, investments of around 35 opportunities that will enable a (carried out in alliance with trillion pesos have been identified, prospective vision of the region to Interamerican Development notable among which are ones be constructed and a short-, medi- Bank, IDB) and the Emblematic that trigger development, tacti- um- and long-term road map to be Cities program provide cal urban development processes,

AUGUST 2018 interventions in regeneration areas to appreciate that there was a need integrative projects that focus on of cities (industrial and renovation for development planning to extend potentialities, production vocations areas, areas that have deteriorated beyond the geographical bound- and excellence components. or are at risk), improvements to aries of cities and provinces and As a result, more than sixty marginal neighborhoods, imple- for mechanisms to be established strategic, integrative projects were mentation of transportation-ori- that would boost competitiveness identified, based on vocations and ented development, comprehensive through regional synergies and excellence components (tourism, urban management models and in- complementarities. As a result of agriculture and environment, lo- novative financial leverage schemes this, the Caribbean and Santanders gistics and transportation, and sci- to boost emerging economic sec- Diamond Program came into being ence, technology and innovation) A knowledge tors, such as creative and cultural as a large-scale regional develop- in this mega-region whose focal transfer process to the regions has industries (orange economy) and ment model that impacts twelve point and principal trigger for de- been achieved, renewable energies. provinces in these two regions. The velopment is the River Magdalena. generating aim is to reduce poverty, boost this local skills and FROM LOCAL TO REGIONAL mega-region’s competitiveness, and FROM VISION TO ACTION strengthening our country’s The experience that Findeter promote inclusion in the interna- The investment plans identified in human capital. gained from these programs led it tional value chain through strategic, the Sustainable and Competitive Cities and Emblematic Cities programs have enabled Findeter to proceed with financing 315 projects worth 2 trillion pesos, representing over 10 per cent progress. Technical assistance under the Sustainable and Competitive Cities program has resulted in more than 165 projects worth worth 2.7 trillion pesos being carried out, while the corresponding figures for the Emblematic Cities program are 55 projects worth 478 thousand million pesos being managed. Strategic bilateral and multilateral cooperation alliances have also been forged with more than 27 institutions around the world, enabling Findeter to become the vehicle for materializing actions prioritized in regional planning exercises through pre-investment models. A start is thus being made on bridging one of the major gaps that exist in development, namely the lack of studies and designs that will result in projects being executed efficiently. To date, funds totaling more than 20 thousand million pesos

PHOTO: Archivo Semana have been mobilized for over 100

PLANNING TERRITORIES PU 28 / 29 WE SUPPORT SUSTAINABLE PROJECTS

of governments and the commitment shown by the entities involved have been a key factor in the success achieved in moving from planning to PHOTO: Cámara Lúcida execution and having a direct impact on people’s lives. Meanwhile, the fact that the analyses that result from these programs materialize and have the desired scope in terms of their social, environmental and economic impacts and, it is hoped, will enable these regions to become reference points, both nationally and internationally, in the future depends in no small measure on the participation of all people and interest groups involved. Today, more than 65 regional entities that have been part of Findeter planning programs have the necessary tools for ensuring that planning and investment prioritiza- tion decisions will lead to sustainable development and will respect natural resources, the environment and, Magangué projects that have a direct impact to define economic development most of all, future generations. (Bolívar) stands on on regions that are part of the strategies based on an understand- Finally, these methodologies the banks of the River Magdalena. Sustainable and Competitive Cities, ing of local opportunities in the have given rise to a knowledge Emblematic Cities, Caribbean and global economy by coordinating transfer process to the regions, Santanders Diamond, and Lands of the different vocations in the re- thus generating local skills and Opportunities programs. gion and searching for advantages strengthening the human capital associated with economies of scale. of those regions. This has been LANDS OF OPPORTUNITIES: The program aims to provide the result of placing citizens at the INTEGRATED REGIONAL technical assistance in identifying heart of the models. DEVELOPMENT possibilities for improving planning Planning is essential, be- Just as urban logic is a fundamen- processes and defining and execut- cause it becomes a focal point tal element of planning processes, ing strategic projects by identifying for structuring development. We As a so too are dynamics in rural mat- the common challenges and com- are a starting point, an engine Development ters. As it has evolved, Findeter has plementarity opportunities offered that starts up and triggers action Bank, what we thus gradually added elements that by large, built-up urban areas and, which enables these methodol- do is facilitate a process for enable it to understand and proj- especially, by looking in depth at ogies to make Colombian cities achieving more ect the region as a whole. To meet job creation and making the econ- and regions capable of improving and better this challenge, it has developed the omy dynamic through unified or their income and their fiscal ca- investments in the regions Lands of Opportunities program, complementary local development pabilities as they draw up more that have a the aim of which is to generate strategies for the region. projects and successfully carry real impact interurban and countryside-city By way of final reflection, it is them out, thereby improving ev- on people. complementarity processes and worth stressing that the political will eryone’s wellbeing.

AUGUST 2018 PHOTOS: Ibagué City Hall URBAN CENTERS building aplanningmodelfor theseurbancenters. their positive experiences ofworking withFindeter on The mayors ofIbagué,Neiva andMonteria recall other matters.other life, of quality amongcitizens’ havethey had on improving their and the impact projects these of theirplanning city, the results Findeter with whenexperiences threewith mayors their about Development (IDB)support. Bank Interamerican outwith carries program, which the entityCities the Sustainable and Competitive programs,especially principal its are the focal of They some of point Territorial (Findeter) mission. to the Financiera de Desarrollo AT FOREFRONT THE Cities PU Pensamiento Urbano Ibagué PLANNING TERRITORIES 30 /31

are essential spoke WHEN PLANNINGYOUR CITY? WITH FINDETERBEENLIKE WHAT HASYOUR EXPERIENCE PENSAMIENTO URBANO: JARAMILLO, MAYOR OF IBAGUÉ GUILLERMO ALFONSO

GUILLERMO ALFONSO JARAMILLO: ty inthe region. ty - and sustainabili competitiveness outto improve sets and it grams, pro inter-sector transverse and more through twenty than oped four strategic lines that are devel- consists initiative of 20 years. This of a period opment covering vision devel- and along-term for Ibagué action of plan Cities a Sustainable studiesfive base which gave to rise Todaycompetitiveness. we have situation, andcal and governance fis socioeconomic, the growth, threats and vulnerability, urban to adaptation to climate change, matters torelating diagnosing view a Findeter in2016,with through program Cities Competitive We and the joined Sustainable G. A.J.: RELEVANT TO YOUR CITY? THE PLAN OF ACTION) THAT ARE GOVERNANCE DIMENSIONSOF URBAN, SOCIOECONOMIC AND WITH THEENVIRONMENTAL, PLANNING EXERCISE (IN LINE BEEN OBTAINED FROMTHE P. U.:WHAT RESULTS HAVE for the city. Here we have done SystemPublic Transportation to implement the Strategic in order to for apply a CONPES the studies thatwith are required we have made progresssupport, economic inthe region. dynamics for dynamics and thegrowth city on urbanand populationbased for 70years,ter supply the next and adequate wa- a permanent executedbeing isto guarantee the that projects of are currently and foodment, security. aim The the city, the environ- preserving water of in terms catchment for Secondly, Findeter and with Firstly, we have progressed - -

a sustainability culture. Wea sustainability have have made progress on promoting productive city, and peaceful we healthy, agreen, Ibague inclusive, which vision, aimstoplan make G. A.J.: MEDIUM ANDLONG TERM? CITY AREENVISAGED INTHE FROM THEPLANSFOR YOUR OR ACTIONS RESULTING G. A.J.: HAD ONCITIZENWELLBEING? THAT YOUR ADMINISTRATION HAS P. U.:WHAT ISTHEBIGGESTIMPACT P. U.: diagnosis. and competitiveness development economic local a ed program, we haveCities conduct and CompetitiveSustainable Meanwhile, the inthe context of 13th Avenue and 103rd Street. quired for the system, such on as ies of the reworks that be will - and (4)conducted stud- detailed registration; land the network the system;ing of (3)completed structur and financial cal, legal outthe techni- (2)carried Plan; Mobility and Public Space Master the following: (1)drawn the up um-term problems are.um-term whatidentifies the long-- and medi study achieved.can be the risk And nomic and institutional vocation out systematically that so aneco - themes facing sets and it the city the challeng big competitiveness - since takes it teristic, on board meanwhile, charac the has same study, competitiveness The term. rection move will it in,inthe long toing able what establish real di- for refers example, - to be the city study, urban footprint them. The interestingseveral things in very there because are useful are very

WHAT PROJECTS AND/ Based development the on The sustainability studies sustainability The - - - accompanied inthat us process. have that to Findeter has recognize are going to leave We with. the city we benefits the biggest one of bly isproba possibilities - and its city in the administration and inthe confidence Regaining ones. big build in the a city with long term that showing to ispossible it been butthis administrationects, has accustomed to having proj small - had grown Ibague of inhabitants broken aparadigm inthe city. We my administration isthat has it of aspect the most important But any distinction. socioeconomic ple canenjoy without themselves, fective spaces public where- peo that guarantees moregrowth ef urban organized through riches, natural and its andregion cultural the of on the benefits and based the focal planning city of point environment, as the with action inter their in people, prioritized Neiva - - projections and goals for the decision-making. The to support precise and robust information sufficient, nowthat has the city RODRIGO LARA: WHEN PLANNINGYOUR CITY? WITH FINDETERBEENLIKE WHAT HAS YOUR EXPERIENCE PENSAMIENTO URBANO: MAYOR OFNEIVA RODRIGO LARA, WE SUPPORTSUSTAINABLEPROJECTS Very in positive, AUGUST

2018

PHOTO: Archivo Semana PHOTO: FINDETER city shouldprotect. environmental zonesthatthe since theseareasarepartofthe matters are vital to planning, river toSuchproperly. function they are,sincethelatterallow and whichonesshouldbeleftas which areasshouldbechanneled This alsoallowedustodetermine that theseworkswouldfunction. the LasCeibasbasinandshow managed to hydraulically model with supportfromFindeter,we longer thannormal.Fortunately, eventual downpour that lasted would besufficienttorunoffan was not certain that the works of therainyseason.However,it and thishasmitigatedtheeffects channeled inrecentyears,been FROM THEPLANSFORYOUR OR ACTIONSRESULTING P. U.: R. L.: RELEVANT TO YOUR CITY? THE PLAN OF ACTION) THAT ARE GOVERNANCE DIMENSIONSOF URBAN, SOCIOECONOMIC AND WITH THEENVIRONMENTAL, PLANNING EXERCISE (IN LINE BEEN OBTAINED FROMTHE P. U.:WHAT RESULTS HAVE territory.ning its manyof different for kinds - plan information supporting has day a source that Neiva pride of to- be constructed. iswhy is it This to horizon aplanning and enabled the process given has legitimacy which participated, tors society of sustainability. sec Wide-ranging and footprint carbon risk, of terms to the statein know the region of by technology, us ported enabling sources and sup from primary are onregion taken input based PU

WHAT PROJECTSAND/ The Las Ceibas river has river Ceibas Las The PLANNING TERRITORIES 32 /33 - - offer their citizens. should thatthe amenities regions vironment and, in general, to all to space, public to ahealthy en - consolidate will they the right inthat advantages, competitive that Neiva’scould nario boost to us enable consolidate a sce- urban regeneration are what will sector andment the of services access toinformation. democracy evenmore,intermsof cyberspace, whichwillimprove its processes and procedures to leisure. Thecityneedstomigrate production, education, health and in, fromtheservicesitoffersto every activitythatNeivaengages munications clusterwillboost formation technologyandcom- we cantobringitfruition. the viewbeingtodoeverything although theintentionisclear, ciative figureisasyetunresolved, environmental matters.Theasso- lems as mobility, housing, and peting and to solving such prob This will be fundamental to com municipalities innorthernHuila. develop synergieswiththeeight taken, and it will enable Neiva to scheme isthecoursewehave through amunicipalassociative gic planforachievingintegration R. L.: HAD ONCITIZENWELLBEING? THAT YOUR ADMINISTRATION HAS P. U.:WHAT ISTHEBIGGESTIMPACT R. L.: MEDIUM ANDLONGTERM? CITY AREENVISAGEDINTHE big savings have made in been restored since office, inpublic ministration. Faith been has fromefited atransparent ad- In the long term, reinforceIn the long term, - In themediumterm,in- In the short term, the strate- Firstly, have people - ben - -

PHOTOS: Archivo Semana Montería. all, ensure citizen participation. all, ensure citizen the environment and, above serve control pre emissions, - atmospheric adheretheir scale, to model, the city of and which, projects irrespective course,of to building public space extends, region asustainable Being processesin all its and procedures. to more be efficient needs region now and in the future.ity The to- to commit sustainabil itself is a path city able that forces it Secondly, Neiva- making asustain inaccordancestrictly the law. with outProcesses have carried been how the administration operates. WE SUPPORT SUSTAINABLE PROJECTS

M. D. P.: We have viewed sustain- FROM THE PLANS FOR YOUR ability not just from the environ- CITY ARE ENVISAGED IN THE mental angle but also from the MEDIUM AND LONG TERM? economic, social mobility and M. D. P.: Extending the Ronda del urban planning viewpoint. This Sinú. Last year we handed over is why we included four strate- the Western Ronda del Sinú, and gic focal points in the 2016-2019 a bidding process has been start- Forward Montería Development ed for Southern one, which will Plan. The first is Urban Green, be three kilometers longer. We which has involved building 115 are determined to give the city a parks in the last ten years and a third bridge over the River Sinú, linear park four kilometers long and that is why we continue to in- called Ronda del Sinú on the sist that the national government banks of the river. Our goal is to carry out this work which, in ad- plant 100,000 trees by 2019. The dition to being an urgent need for MARCOS DANIEL PINEDA, second focal point is Sustainable Montería, will probably become MAYOR OF MONTERÍA Mobility, involving the construc- another icon of the city. tion of a 35-kilometer cycleway Additionally, introducing PENSAMIENTO URBANO: WHAT HAS network. During this period, the Línea Azul (Blue Line) river YOUR EXPERIENCE WITH FINDETER we have paved over 117 kilome- transportation system on the BEEN LIKE WHEN PLANNING YOUR ters of city streets and begun to Sinú is a very important project CITY? introduce our Strategic Public that we are carrying out with MARCOS DANIEL PINEDA: Montería Transportation System. Findeter, and it will be a pilot has undergone an unprecedent- The third focal point, model for Latin America. The ed urban and social transforma- Healthy Environment, means system will consist of small ves- tion in the last ten years. We have our using clean energy in schools, sels powered by solar energy that been able to carry out ambitious in public lighting and on traffic will connect the city via the river infrastructure projects that would lights, and we are working on a from south to north and vice ver- previously have been thought im- recycling culture. We were se- sa. Our vision is to incorporate possible and have seen important lected by the Swiss Embassy to it eventually into the Strategic results in our efforts to improve our carry out a renewable energies Public Transportation System. social indicators. Findeter has been pilot project, the first stage of a fundamental strategic partner which will be introduced in of- P. U.: WHAT IS THE BIGGEST IMPACT Montería, throughout this process because Ibagué and ficial education establishments. THAT YOUR ADMINISTRATION HAS it has given us close, constant in- Neiva are part The fourth focal point is the HAD ON CITIZEN WELLBEING? stitutional assistance, thanks to of Findeter’s Agrópolis del Sinú strategy, M. D. P.: Citizen participation is Sustainable which we have been able to con- and which we are carrying out with the bible of a good government, sider sustainability as a transverse Competitive support from Findeter. This and it is on that premise that policy in our government. Cities program. aims for synergy between city we base all government actions, and countryside by stimulating at all times with the view that P. U.: WHAT RESULTS HAVE economic development. We are the community is our principal BEEN OBTAINED FROM THE determined to stand up for the ally when it comes to making PLANNING EXERCISE (IN LINE countryside, because we are con- decisions, since those decisions WITH THE ENVIRONMENTAL, vinced that it is where the coun- mainly aim to transform the lives URBAN, SOCIOECONOMIC AND try’s future lies. of the citizens of Montería. This GOVERNANCE DIMENSIONS OF has been the biggest impact that THE PLAN OF ACTION) THAT ARE P. U.: WHAT PROJECTS AND/ our administration has had in RELEVANT TO YOUR CITY? OR ACTIONS RESULTING the last ten years.

AUGUST 2018 COLOMBIA’S FUTURE DEPENDS Stock PHOTO: i ON THE EFFECTIVENESS OF ITS metropolises

These types of urban systems are the driving force behind a country’s production. But if they are to be competitive they need integrated policies and strong institutions. In Colombia, integrated management of such cities could be very profitable for public investments and for Findeter.

Panoramic view of Bogotá, D.C. By Pedro B. Ortiz Colombia 6,000 dollars). But this 100, and there is no mention of International adviser to is a worldwide phenomenon, not Medellín, Cali or Barranquilla. national and multilateral something unique to this South governments. American country. Nowadays, WHAT CAN BE DONE TO MAKE Author of The Art of Shaping the Metropolis. nations on the five continents COLOMBIAN METROPOLISES Former General Director compete through their biggest con- FUNCTION? of Metropolitan Planning, urbations. Globalization relates not There are many things that can be Madrid Community, and to countries but to metropolises, done. Public administration has Salamanca District Mayor. and the latter are merely the pro- to deal with matters relating to duction hinterland of the former. housing, the environment, so- Metropolises are incredibly cial issues, education, human powerful and productive. Some resources, business capability, IF ITS metropolises do not func- of them could be included in the innovation, capitalization, fi- tion, nor does Colombia. The global list of countries by GDP nancing, job training, public combined GDP of the four larg- volume, Tokyo in 14th place and institutionalization and private est conurbations in the country is New York in 15th, to mention just coordination, among others, in around 75 per cent of national GDP, two. 46 of the leading 100 are mean integrated manner. whereas they are home to only 40 tropolises, an astonishing propor- It is essential that no issues per cent of the total population. tion. In the case of Colombia, it are overlooked or dealt with in a This means that they are tremen- would be in 48th place with a GDP non-integrated manner. They are dously effective and productive. similar to that of Hong Kong, all part of the unitary system, Their per capita GDP is consider- but it would be well below Los the metropolitan genome. They ably higher than elsewhere in the Angeles, which has twice its GDP. all interact, and any one action country (Bogotá 18,000 dollars vs. Bogotá does not feature in the top automatically has repercussions

PLANNING TERRITORIES PU 34 / 35 WE SUPPORT SUSTAINABLE PROJECTS on the rest. Strategic Plans, need these coordination and de- structures, although the many and Structural Plans and UN-Habitat cision-making entities. Singapore varied demands of the municipal- Metropolitan Workshops are the can be considered an example of ef- ities that make up the metropo- instruments that integrate sector fectiveness, because it has a unified lis are not the soundest basis for policies and produce synergies government system. It is essentially maximizing that effectiveness. and multipliers, as well as prevent a metropolis-state. Municipalities have no vision of redundancies and conflicts. Metropolises need something the metropolis as a whole, because It is from these processes more than a meeting of mayors they meet the local demands of that essential projects are gener- with a willingness to talk. They Metropolises their citizens and prioritize col- ated and prioritized, and invest- need institutions which make need some- lective consumption over invest- thing more ments with the highest social and wide-ranging decisions that will ments in production. than a meeting economic, but above all financial, benefit the whole, and these in- of mayors with The 200 urban planners under returns are selected. If these pro- stitutions can only be formed by a willingness to me in Madrid had a very clear or- cesses are absent, results are cha- superior state entities. Colombia’s talk. They need der: if a mayor appeared with a bad- institutions otic. The most underdeveloped 1991 Constitution established a which make ly-presented proposal, it would not economies have not yet managed disfunction between Bogotá and wide-ranging be enough to say ‘no’ to him. That to understand the importance of Cundinamarca, while the oppo- decisions that would be the easy part, because it will benefit this. They tend to prioritize short- site occurred in Germany, where the whole, would not compromise the official’s term decisions linked to election city states were brought into be- and these responsibilities, but it would not be periods and political benefits for ing. Colombia, therefore, now has institutions can the answer. The answer had to be, only be formed the officials that make them. to accept the consequences of not “You can’t do it like that, but this by superior having a capital that is able to com- state entities. other way is possible”. COLLECTIVE INTELLIGENCE AND pete internationally as it should. Findeter knows if an invest- GOVERNANCE HOW CAN THIS IN- ment is profitable or financeable, TEGRATION BE ACHIEVED? METROPOLISES ARE THE and it does this very well. But its With collective intelligence. RESPONSIBILITY OF CENTRAL responsibilities could also include Institutions are one of the most GOVERNMENT developing the necessary skill in the important aspects of this. People If its metropolises do not func- regions so it has the alternative of show their intelligence if they are tion, nor does Colombia. If the saying to a mayor, “If we propose capable of creating the most suit- country fails to function, the this operation in this other way, able institutions for governing blame lies with the state and not then it can be financed”. A proactive themselves. Intelligence is not the with the local administrations of attitude requires a regional vision of only attribute, but it is certainly Chía, Rionegro, Palmira and/or the metropolis that goes beyond the one of the most important. Sabanalarga. It is the state that is sum of the legitimate but short-term In 2015, OECD published required to make the necessary and compartmentalized visions of a study which showed that me- resources and budgets available the municipalities. It is the state, and tropolises with twice as many to institutions so that the coun- hence also Findeter, that should pro- administrative areas (number of try can function. Metropolises are vide this integrated vision. municipalities) are six per cent less tremendously profitable for states, This metropolitan vision is effective. In metabolic processes from the financial viewpoint, if extremely profitable for public in- in biology and in urban planning they know how to finance the cap- vestments and for Findeter. It is (Geoffrey West), on the other ital gains on public investments the only way to join the big leagues hand, when size doubles, effective- intelligently and recover them. in the globalized world of metrop- ness increases 15 per cent. Findeter is an instrument of olises. And Colombian cities with The figures coincide. The more this state, and its responsibility this profile therefore need to take unified and organized governance lies in supporting the financing of that qualitative leap forward, be- systems are, the more effective the public works. It is an instrument cause with that decision Colombia figures will become. Metropolises for boosting effective metropolitan is gambling on its future.

AUGUST 2018 A Model TO BRIDGE GAPS

Clear progress has been made in Colombia in drawing up urban development projects, but there are still challenges that need to be faced.

By Juan Manuel Robledo but most of the time end up ex- countries like Spain, France and and Jean Francisco Duque tending the time needed to bring Japan the projects were carried CIUDAT Director and Town projects to fruition. out by institutions that were estab- Planner, respectively. These problems illustrate a lished specifically to draw up and lack of vision in urban development execute this type of project. projects. Such projects should be If experiences in Spain SIGNIFICANT PROGRESS has viewed not as isolated initiatives and Japan are compared, they been made in drawing up projects but as contributions to a region’s can be seen to have evolved in in the field of urban development growth and potential. They should a similar manner. In the 1950s in Colombia as a result of such in- thus transcend government peri- both countries had housing de- struments as Regional Land Plans ods (from drawing-up to implemen- velopment companies, then in and Master Development Plans, tation and useful life), in order to the seventies these were trans- which aim to improve compet- guarantee implementation and so- formed into urban development itiveness. When executing these cial, environmental and economic enterprises and in the eighties projects, however, municipal ad- component sustainability. and nineties they became land ministrations come up against a A question arises in this con- administration and urban devel- whole series of problems which text: what should be done to en- opment entities, until today they prevent them from being imple- sure that an urban development are the Regional Land and Urban mented successfully. The absence project is carried out successfully? Planning Administration Company of funds to finance them, obsolete The answer can be found from a (Arpegio), in Spain, and the Urban land use regulations, a lack of abil- global overview of cases where Rebirth Agency, in Japan. ity in the institutions concerned urban development projects have Because Findeter is a devel- and poor continuity in govern- been implemented successfully. opment bank, it has structured a ment cycles are just some of the They all have one thing in com- product aimed at making it a facil- many difficulties which, in some mon: they have an administration itator and/or partner which pre- cases, are overcome successfully entity. The search reveals that in fers projects that are sustainable

PLANNING TERRITORIES PU 36 / 37 WE SUPPORT SUSTAINABLE PROJECTS

institutions, and speeding up urban administration processes and the integration of short-term actions. Identifying Evaluation prior to The GUI proposed by Findeter opportunities to incorporating is thus an innovative strategy aimed modify, expand or value-capturing at urban parts of towns, metropoli- complement projects instruments tan areas and regions that promote PRE-INVESTMENT planned, sustainable development, Road maps for Financial structuring drawing up and of projects. and is a strategy that pursues the administering following strategic objectives. projects. 1. To develop comprehensive ur- Technical instruments Adoption of ban projects with a view to im- for drawing up value-capturing proving citizen quality of life projects instruments.. and to foster orderly planning. Prospective land Pre-project 2. To support a strengthening of price and real estate evaluations, during institutional and fiscal abili- market studies. intermediate ties in regional entities, in drawing-up phase. Cycleway in Manizales DEVELOPMENT order to generate resources Drawing-up of master Administration

PHOTO: FINDETER (value-capturing instruments) plans for mobility, or support for for financing Comprehensive public space, and/ administration of Urban Projects. or equipment. projects, and support 3. To foster a strengthening of infor inter-institutional in all aspects and which generates stitutional, regulatory, technical project coordination. skills in municipalities so that in and information management the future they can have an admin- abilities, among others, in order istration entity of their own for to enable urban projects and in- structuring projects. This implies terventions to be administered Finally, the GUI (viewed as towns and Findeter working to- and executed effectively. a coordinated process based on gether to draw up Comprehensive 4. To enable project proposals knowledge of the region, joint The initiative Urban Projects that recognize the to be understood not just as proposed work by the parties involved in the individual realities of the regions isolated initiatives but in a re- by Findeter planning process, and a model co- and propose solutions that are gional context. focuses on vering drawing up, financing and providing in line with regulatory, financing 5. To prioritize urban interven- solutions execution) is the medium through and execution conditions, thus tions. relating to which efforts should be channe- enabling the initiative to be im- 6. To bring in and coordinate the local knowhow led in order to get Comprehensive weaknesses. plemented successfully. In other public and private parties that Urban Projects implemented. words, a Comprehensive Urban will be involved in the region. This model thus sets out to Administration (GUI, in Spanish) 7. To provide a long-term vision bridge gaps in the project admi- for the project is required. of urban development, thus nistration model and hence enable The initiative proposed by breaking the established gov- fair, inclusive, high-quality cities Findeter in the context of its ernment-cycle paradigm. to be built, the fiscal and institu- plan-finance-execute operat- 8. To reduce greenhouse gas emis- tional ability of municipalities to ing model focuses on providing sions by urban sector activities. be strengthened so that they can solutions relating to local know- 9. To promote a rational use of better execute sustainable projects, how weaknesses, the inability to the private car, to encourage and the instruments that guide lo- direct and administer compre- sustainable means of trans- cal development to be understood, hensive urban renovation and de- port, and to increase the used, and integrated into urban velopment projects, strengthening amount of quality public space. development objectives.

AUGUST 2018 BUILDING CITIZENSHIP WITH LIVE PLANS AND TACTICAL TOWN planning

These alternative strategies that have been introduced are a tool that Findeter uses to stimulate greater citizen participation and appropriation by people who live in towns where projects are carried out.

By Laura Múnera, Julián to a physical space problem, it also instruments. In these new mech- Castro and Juana Leal accentuates social fractures and anisms, a neighborhood scale pre- Planning Vice-Presidency tensions. Only rarely do citizens dominates, making it possible to Architect have an opportunity to take part forge close links with the commu- Simón Hosie in building their own surround- nities involved. implemented the Live Plans THE TRADITIONAL ways in ings or to have any influence on These strategies also offer methodology, which cities were conceived and decisions that are made. specific ways to understand the re- which has been planned in the 20th century, and In response to this, a new sults that can be obtained from cit- developed from his have continued to be in the 21st logic has arisen in the way cities izen participation. With Live Plans, experience century to date, have resulted in are viewed, one where the indi- this makes it possible to identify with significant progress being made in vidual can play a leading role. In the individual needs of a given por- communities. regional development. However, order to guarantee greater in- tion of the region, based on the ev- conflicts have also arisen in conclusion, exercises like Live Plans eryday experiences and feelings of nection with a lack of identity, (LP) and Tactical Town Planning its inhabitants. TTPs, meanwhile, unnatural changes on a human (TTP) have become mechanisms enable collective design and con- scale, and a lack of adequate pub- that complement traditional ur- struction processes to be generated lic spaces. All this not only leads ban management and planning for interventions.

PLANNING TERRITORIES PU 38 / 39 not only of a constructed element aconstructed only of not orderin to achieve appropriation identityto the local of elements the community. Recourse was had immersionof in, and working with, were aprocess through obtained for guidelines the design which and architectural proposal there, at anurban arose sibility to arrive Pescaíto pos The neighborhood. Marta’s Colombia)inSanta of communities indifferent parts veloped from with hisexperience (de methodology Plans Live the ed Architect Simón Hosie implement Perlala Foundation. America’ de la from and aboost the ‘Tras Agency from French the Development receivedtiative support financial ini- process. planning The gional involvement of in terms in a re- commitments most ambitious its In 2015, Findeter made one of In 2015,Findeter made one of - - - planning process. planning process. has a regional one city that is (Colombia) Santa Marta

PHOTO: Getty Images-Wolfgang Kaehler the city’s growth and development. development. and city’sthe growth incorporated into policies governing ercises transcend and are the specific comes to guaranteeing that ex these role play a fundamental here when it governments Local out the region. - through formation and belonging and generate thus this type of trans a city, the aim is to promote actions are of concentrated parts inspecific exercises these replicated. Although projects that canbe small-scale term, short- to related being it to low-cost, inthe long term. sustainable be for to people accept and for it to it therebyproject, easier it making the of inallstages participation promote activeTTPs community Live Plans, with As in it. and trust executing the entity theof project thereby increasing the credibility time, of period inashort seen be results to tangible enables it phase, the execution During projects. comeswhen it to administering uncertainty of duces the margin innovative mechanism which re- Culture. of from the Ministry support which with isfinanced ing resulting from the strategy, Dance, the first emblematic build the House of to fruition bringing is that Findeter ison the way to the progressof made inPescaíto sign One base. robust partner local toadapt change and have amore and thus achieve projects that can a cleareraccount, can get they view into taketies this universe views of community. administrative If - enti representing voices various in the people group of a heterogeneous processes involvethat participative Pescaíto to led an understanding in successful LPexperience The it. thebut of also reasoning behind The relevance of TTP is linked islinked relevance TTP The of Tactical Town isan Planning - - - their transformation. own administering to of ties capable be which to it enables help communi- transferand knowledge model, technical assistance, co-financing its of actions these because taking for that regions are interested in to has atrigger. be that TTP areas isinthese It interventions. infrastructure major undertaking and for technicalcial capabilities far- exceed needs their finan their more,benefit and in many cases could they because nicipalities swer istoward mu- smaller-scale an- The arises. direct ourefforts wherethe question of we should concept, ready yet not for the TTP are 1,102municipalities country’s public advantage space. of taking and assets safeguarding heritage transportation, sustainable of use such waste as issues treatment, the ple interested in matters relating to ipal administration- and to peo get to possible be improvealso munic incentives to offered. be should It for aneed isthus their There own. them togetting adopt strategies of and therefore their benefits of ties relevant and other ernments par face lies inconvincing gov local challengesmain strategies these meaning and value.new ture have the whole area given a and cul- under which art project, Green Corridorthe UrbanArt ofwere color with part as filled neighborhoods their and bridges and parks toable enjoy various Pozónand El were neighborhoods Fredonia Boston, Nelson Mandela, gram, whereby the inhabitants of pro Hands’ the- ‘Various oritized Hall recently- City pri Cartagena Findeter is a strategic partner partner Findeter isastrategic fact the of that the view In the progress, the Despite WE SUPPORTSUSTAINABLEPROJECTS AUGUST 2018 - - - FINANCING SUSTAIN PHOTO: Findeter-César Nigrinis PHOTO: Findeter-César

PU 40 / 41 WE SUPPORT SUSTAINABLE PROJECTS

ABLE PROJECTS

Julio Garavito School of Engineering, Bogotá (Colombia).

AUGUST 2018 PHOTO: iStock

Financing: THE KEY TO REGIONAL DEVELOPMENT

The financial products offered by Findeter promoting best practices on mat- have won the entity trust and a reputation ters relating to the environment, on the world’s markets, enabling those climate change, equal opportunities, and concern for the most vul- products to generate progress in the regions Findeter aims to ensure that nerable members of society. and to improve people’s quality of life. its strategy Findeter has specialized in the enables it to long-term financing of infrastruc- perform its ture projects in the regions and in activities in By Richard O. projects which encourage those accordance fundamental sectors like drinking Martínez Hurtado sectors of the economy that help with the water and basic sanitation, as well Financial Vice-President, Findeter improve the living conditions as in sectors with a high social of Colombian people and make 2030 impact, such as transportation, Sustainable them more dynamic. Development health, education, energy develop- IN COLOMBIA, development With this objective in mind, Goals and ment, environment, and housing. banking in general, and Financiera development banks have played hence continue It has been able to do this to be the de Desarrollo Territorial (Findeter) a variety of roles in the country’s because of the strategic direction leading deve- in particular, have been responsi- economic environment over time, lopment bank the entity has taken in order to ble for channeling as much fund- ranging from providing liquid- in Colombia. ensure that it operates to high ing as possible toward executing ity for the financial system to administrative standards. These

FINANCING SUSTAINABLE PROJECTS PU 42 / 43 WE SUPPORT SUSTAINABLE PROJECTS standards have been recognized the entity has consolidated its had been disbursed with terms of by international rating agencies relationship dating back to the more than five years. Standard & Poor’s and Fitch 1990s with the Interamerican The entity has thus man- Ratings, which have currently Development Bank (IDB). aged to get the best conditions granted the entity BBB- and BBB IDB financing and techni- and sources of financing for sup- ratings, respectively: these are cal support has enabled pro- porting its mission to be the best the same as the international grams like the Sustainable and strategic partner in the regions country ratings. Competitive Cities program to and hence generate wellbeing for Because of this significant carry out planning exercises and people, and this has enabled it to achievement, Findeter has had hence identify and prioritize proj- place development project credits access to such important sourc- ects that need to be implemented worth more than 17.4 trillion pe- es of funding as the interna- in around 22 of the country’s cit- sos since August 2010. It has had tional securities market where, ies and metropolitan areas, and a positive impact on every prov- The support in 2014, it carried out the first that Findeter thus guarantee orderly and overall ince in the country and on the bond issue under New York laws has received regional development. main sectors of the economy, with (Regulation S, Rule 144A). This from the na- This type of interaction with the best financial conditions for tion in making successful issue, the first in the multilateral banking and the gov- the beneficiaries of these credits. it the bank recent history of Colombian de- that supports ernment agencies of different Moreover, it is because of these velopment banking, was a major sustainable countries has enabled Findeter to activities that Findeter has become landmark for the entity, since it development become a specialist in sustainability an important regional development in the regions granted it access to investors in has been and technical assistance, thus mak- coordinator, since it channels subsi- various parts of the world, thus fundamental. ing it a reference point for develop- dies by the various national govern- adding to its important client ment banking in Latin America. ment ministries, regional entities base on the local market. This Another of the entity’s great and organizations and international clearly illustrates the trust that assets is its reputation on the local agencies at the interest rate for pro- the national and international market. Having held a AAA local moting and developing economic markets have in the financial rating by Fitch Rating Colombia sectors of interest. products the entity offers. for more than 20 years, Findeter Looking to the future, the Meanwhile, in view of this, the has consolidated a position as a entity is facing a number of big entity has been able to access funds major actor on the national pub- challenges, such as bringing proj- from multilateral entities and in- lic securities market. At March ect financing into line with proj- ternational banks like the French 31, 2018 it had placed Fixed Term ect evaluation on environmental Development Agency and KFW Deposit Certificates with a liability and social aspects so as to guar- Bank (Germany). It has done this balance of 4.5 trillion pesos, in ad- antee sustainability and generate autonomously, without the need dition to the 203,000 million peso equal opportunities for members for the nation to grant any guaran- subordinated bond issue it placed of the communities with respect tees, a factor which highlights the on the market in April 2017. to all credits that are to be dis- trust in its soundness and financial Integrating all these factors bursed. This is one of the most image on the international market, has made it possible for Findeter ambitious objectives in an envi- as mentioned above. today to have financing lines with ronment where financing needs During this process, the terms of up to 15 years on indi- in Colombia are still very high. support that Findeter has re- cators such as IBR, IPC and DTF, Findeter thus aims to en- ceived from the nation in mak- notwithstanding the fact that sure that its strategy enables it ing it the bank that supports it studies and grants financing to perform its activities in accor- sustainable development in the with even longer terms in certain dance with the 2030 Sustainable regions has been fundamen- cases. It is key, here, to point out Development Goals and hence tal. With Ministry of Treasury that 95 per cent of the entity’s continue to be the leading devel- and Public Credit cooperation, total credit portfolio at March 31 opment bank in Colombia.

AUGUST 2018 The regions’ PARTNERS Through disbursements totaling more than 18 trillion pesos, Findeter has made it possible to execute priority projects throughout the country, resulting in improved coverage, quality and continuity indicators in 11 sectors.

By Daniel Sanabria special lines are set up by Findeter Impact on regions Findeter Head of with its own funds for the purpose A lack of regional planning and of Business Intelligence of promoting a specific sector. It has technical skills and financial re- developed 21 special lines in recent sources is a problem that affects FINDETER HAS maintained its years, resulting in disbursements developing countries not only status as the partner of Colombia’s totaling 2.7 trillion pesos. The main in Latin America but all over the regions as it has gone about financ- sectors have been transportation, world. Colombia is no exception, ing their infrastructure and assist- energy, education and health, while and Findeter has helped to bridge Since 2010, ing them since 1989. The entity the beneficiaries have been 29 prov- these gaps. In the last eight years the entity has has evolved over the three decades inces and 143 municipalities. the assistance it has provided has created 27 it has been in existence. Initially it Findeter also created such been more intensive, because it has compensated rates for urban directed its efforts toward provinc- financial instruments as com- funded loans totaling over 18 trillion infrastructure, es and municipalities that needed pensated rates, which transfer pesos for projects in 31 of the coun- health, technical assistance and financial the benefits of subsidies to the try’s provinces, including the Capital education, water, resources for executing projects beneficiaries through financial District, covering 415 municipalities transportation, that aimed to improve installed intermediaries. Since 2010, with and 11 sectors. The transportation tourism capacity in such fields as health, support from ministries, provinces infrastructure, health, energy, ur- and fiscal consolidation. education, transportation, water and municipalities, the entity has ban, education and drinking water and urban development. Now created 27 compensated rates for sectors received 94 per cent of the that it has expanded its financing urban infrastructure, health, edu- total disbursements. sphere and its fields of action, it cation, water, transportation, tour- These funds are measured in supports public and private so- ism and fiscal consolidation. These terms not only of the actual figures cial housing, technology and en- subsidized funds have been used but also of the fact that they have vironmental projects. to execute water and road plans brought to fruition 4,095 infrastruc- The entity offers its clients re- and to generate development and ture projects around the country, discount loans with special lines and competitiveness at ports and en- principally through long-term loans, rates, meaning that projects enjoy ergy efficiency, and also to miti- thereby complying with the entity’s highly favorable conditions. The gate climate change. mission. These results during the

FINANCING SUSTAINABLE PROJECTS PU 44 / 45 WE SUPPORT SUSTAINABLE PROJECTS

Plan, the health compensated rate was created in order to ensure sector financial sustainability under conditions of efficiency. The entity has to date disbursed funds totaling 1.25 trillion pesos in 26 of the country’s 32 provinces and in 37 municipalities, benefiting 6 EPS and 103 IPS nationwide. This is an innovative rate because, among other things, it has generated solutions that have impacted the health sector, financed entities around the country for this, including cities and towns with vulnerable populations, and has enabled financial intermediary banks to enter this sector.

PHOTO: Findeter Findeter has thus succeeded in positioning itself not only as the most important financing entity in present decade have made Findeter a sustainable projects in the regions Panoramic view the country but also as the devel- of the Provincial development banking market refer- that result in increased coverage, Viaduct in opment bank that takes wellbeing ence point in Colombia and through- quality and continuity in the energy, Bucaramanga to the regions. Notable features of out Latin America. The results speak transportation, urban development, (Santander). this process include the success of for themselves: in addition to the construction and housing, health, the various financing mechanisms, sum mentioned above for financing education, environment and sus- such as compensated rates and spe- infrastructure projects, 208 educa- tainable development, IT, and sport, cial lines, which have covered prov- tion entities have benefited, together recreation and culture sectors. inces and regions where needs have with 284 health institutions, 27 wa- This credit line has financed been high: vulnerable population, ter and sewage companies, 17 clients projects worth 2.64 trillion pesos in poverty, and displaced persons. with provincial road projects and 13 24 provinces and 127 municipalities The challenge now is to continue, mass transportation systems, to around the country. 80 per cent of together with ministries and private mention but some. these funds have been assigned to entities, to encourage the creation All this has impacted the re- three sectors: 35 per cent to trans- of other tools that will make it pos- gions in matters like cost savings for portation, 33 per cent to education, sible to carry out priority projects beneficiaries by virtue of their hav- and 12 per cent to drinking water. in the regions that promote devel- ing access to the entity’s funds, job The compensated rate for sustain- opment and sustainability in the creation, more beds for health care, able infrastructure has had a big im- country. The entity therefore con- and more teaching jobs and class- pact because the loans have financed tinues to be committed to National rooms for studying. socially important projects like uni- Development Plan and wants to versities, roads and clinics, which help the national government to Compensated rates boosted credit in the regions. The generate growth and progress. Due to its share and volume of rate has thus had a multiplying ef- The entity recommends that funding, the compensated rate for fect and meant that funds have been programs be drawn up that will sustainable infrastructure is the used more efficiently, and it has also improve the country’s social indi- most notable of all the financial pioneered soft rate mechanisms. cators by working with dedication tools created by Findeter. Since In 2015, in the context of the on issues that are of vital impor- 2010 it has been used to finance 2014-2018 National Development tance to Colombia.

AUGUST 2018 First-tier banking First-tier PU Davivienda Director ofBusiness Public Relations,considers that She is of the opinion that these She isoftheopinionthatthese target ofDevelopment Banks. banks should design financial banks shoulddesign financial education and empowerment education andempowerment vulnerable populationgroups Alejandra CuéllarVanegas, should be the main public should bethemainpublic Social Responsibility and Social Responsibilityand FINANCING SUSTAINABLE PROJECTS 46 /47 programs for women. IN JANUARY 2016 IN JANUARY SUPPORT Development and first-tier banks sector, have to participate. agreed includingsectors, the financial and production private enterprise governments, because possible Development be Goals (SDG)will the 17Sustainable Compliance with bylowed more 197countries. than opted that the as plan isto fol be - Nations approved has and ad- which the United 2030 Agenda, to the executing of began down the countthe - tity’s experience with the SDG, with tity’s experience commented enon this financial Central America, and North which operatesDavivienda, in Colombia’s banks, principal and Public Relations at one of Responsibility Social Business Vanegas,Cuéllar Director of Pensamiento Urbano to improve people’s life. of quality ordination, are involved inactions or inco individually either - banks, In a conversation with , Alejandra , Alejandra

PHOTO: Istock WE SUPPORT SUSTAINABLE PROJECTS development bank performance, designing products and services and technology that meet stake- and synergies that have been that will enable banking to be holder needs, promote easy access achieved with Financiera de available to population sectors at to financial products and services, Desarrollo Territorial (Findeter). the base of the pyramid who are eliminate barriers, and help re- traditionally excluded from the fi- duce inequality. Pensamiento Urbano: What nancial system, in the form of in- is your entity’s position on novative products like DaviPlata, P.U.: Bearing in mind current the Sustainable Development which allows transactions to first-tier bank dynamics and Goals (SDG) and the new ur- be carried out easily from a cell the experience with regional ban agenda? phone and at no cost to users. entities (city halls, provincial Alejandra Cuéllar Vanegas: We are also contributing governments, etc.), what ini- Davivienda is part of the Bolívar to these goals in our capacity as tiatives do you believe develop- Group, and as such we fully under- leaders in the financing of social ment banks should promote? Financiera de stand the contribution that we need Desarrollo housing, as we are with our Rural A.C.V.: Development banks to make in the private sector in or- Territorial Finance program. On the other should focus on promoting ac- der to adhere to the Sustainable (Findeter) has hand, a robust financial education cess to credit, especially for vul- been a very Development Goals. We are of the important program has been developed which nerable sectors of the population, opinion that all of us have a duty, partner for provides people in countries where and on designing financial edu- as entrepreneurs but also as indi- the bank in we operate with tools to enable cation and empowerment pro- helping us to them to manage their money well grams for women. They should viduals, to ensure that our actions understand are directed toward building a better and find out and build up capital. also promote projects that boost world, and this is why we fully iden- about projects These are just a few examples environmental sustainability and tify with these goals. in different of products and services that are regional development. parts of the We have worked within the country. fundamental to the bank’s strategy In the Colombian context, de- bank to establish all the initia- and clearly make a big contribution velopment banks are key actors in tives that nowadays contribute to improving the living conditions promoting initiatives to support the to each of the 17 SDG, so that of individuals and their families. post-conflict process in the form of we can define measurement and victim reparations, providing funds follow-up mechanisms for these P.U.: In the experience of the to support rural development, indicators. The Bolívar Group as entity you represent, what fi- creating growth opportunities for a whole has grouped together nancial mechanisms and/or people affected, and designing pro- the SDG on which the activities factors do you believe can have grams aimed at the community. carried out by each individual a big impact on developing re- company can have the biggest gions and people’s wellbeing? P.U.: What has your entity’s impact, and we at the bank there- A.C.V.: Channeling resources to experience with Findeter fore have different contributions. people at the base of the pyramid been like, and what benefits is fundamental, and this is done have you seen? P.U.: What specific programs by supporting social entrepre- A.C.V.: Financiera de Desarrollo is the bank carrying out to im- neurship projects, startups and Territorial (Findeter) has been a prove people’s quality of life? small- and medium-sized busi- very important partner for the A.C.V.: As far as reducing pov- nesses in order to encourage job bank in helping us to understand erty and social inclusion are con- creation and more opportunities and find out about projects in dif- cerned, we believe that the bank and to reduce poverty indices and ferent parts of the country. It has plays a crucial role in channeling inequalities in the country. All also helped us to strengthen our funds to the least-favored sec- this is reflected in greater devel- relationship with regional actors, so tors. At Davivienda, this is part opment and economic growth. as to support the financing of devel- of our business strategy, and we There is also a need to gener- opment plans and private projects have therefore concentrated on ate solutions based on innovation in various parts of Colombia.

AUGUST 2018 Votes of CONFIDENCE FROM AROUND THE WORLD

Findeter has become that is founded on the credibility the leading entity of the institution’s mission. The support it has received in the country in from the governments of Japan, negotiating non- the United Kingdom, the United reimbursable funds States, Germany and France, among others, as well as from elsewhere, having some of the most influential devel- obtained around opment banks in the world, such as 50 million dollars the World Bank, the Interamerican Development Bank (IDB) and from international the United States Agency for organizations and International Development governments. (USAID), to name but a few, con- firms that we have moved in the right direction. As a result, Findeter has man- By María Paz Uribe Estrada aged, to date, to administer non-re- Findeter Head of imbursable funds totaling around International Banking 50 million dollars that have been used, fundamentally, in the regional transformation process, to build SEARCHING THE WORLD for sustainable regions and to improve funds that will be used to sup- quality of life for thousands of port, develop and implement Colombians around the country. sustainable programs anywhere The story began in 2011 and to do this, it used its now-proven in the country is a task that could 2012, when this development bank formula for success, namely plan, be described as titanic. This job literally traveled the world with its finance and execute. that Findeter does every day and suitcase, with the idea of learning The good news soon began has become the secret of its suc- from the principal international or- to come in, and in late November cess is based on the work its staff ganizations. On the basis of what 2013 the first flow of non-reim- have done for years, far beyond it learned, close links of trust were bursable funds began, from the Colombia’s borders, where they forged that enabled funding to be European Union through the French have built up a reputation with found so it could go on building Development Agency, in the form of the international community the country we dreamed of. And five million euros for the Sustainable

FINANCING SUSTAINABLE PROJECTS PU 48 / 49 WE SUPPORT SUSTAINABLE PROJECTS

non-reimbursable cooperation the position that the institu- funds, and to establish the entity’s tion has won for itself abroad brand and prestige abroad. is the appointment of Findeter In the early days of this long- President Rodolfo Zea Navarro term commitment we had to knock to the Managerial Council of on many doors, attend countless the Latin American Association meetings and presentations with of Development Financing top officials, look for identification Institutions (ALIDE). This oc- points, create trust levels and even curred late last year. chemistry and, finally, show total, It is a source of great pride absolute transparency. for the institution to be part of In 2014, IDB contributed the Latin American develop- 500,000 dollars to improve mobility ment banking industry, where in Montería, Popayán and Pasto. In Finagro, the National Savings 2016, Global Environment Facility Fund and the Development (GEF) gave 1.9 million dollars to Institute (IDEA) also have a pres- improve public lighting systems in ence. Equally, it is a source of Colombia, and the NAMA facility, pride to be ALIDE’s focal point with support from the British and in Colombia, which indicates rel- German governments, handed over evance and status in the field of 11.7 million euros for transporta- development banking, because tion-oriented development projects. ALIDE is an umbrella organiza- Later, in 2017, the British govern- tion for 90 such institutions in ment’s Prosperity Fund provided 13 more than 30 countries. million euros, and more recently Abu Another item of news which Dhabi Development Fund gave 7.3 illustrates the reputation the million dollars. These are but some entity has earned itself abroad of the many instances of successful, is my involvement as Latin non-reimbursable cooperation. American representative on the These examples illustrate the UNEP FI Banking Committee. extraordinary vote of confidence This is the United Nations envi- that Findeter has received from ronmental financing initiative, the international community and, a special committee for bankers. especially, they have enabled proj- This achievement by Findeter ects to be carried out in key devel- is a landmark for the country PHOTO: iStock opment areas in the country, such because it is the first time that as infrastructure, housing, water, the position has been held by a health, education and energy. Colombian development bank. and Competitive Cities and the These funds from abroad, for The process of getting non-re- Emblematic Cities programs. which Findeter is responsible be- imbursable funds from around the This initial aid enabled the fore the world, trickle down to city, world in order to boost sustainabil- It is a source foundations to be laid for the spe- of great pride municipal and provincial levels and ity in the country’s regions never cialized Findeter International for Findeter to become investments that optimize stops. Findeter is preparing to face Banking area, which was set up be part of the communities’ sustainable future. the next challenge on the develop- Latin American to perform three key functions development ment agenda on vital issues like that were nevertheless ºfar from banking OTHER ACHIEVEMENTS the post-conflict, and it is ready to easy to achieve: to obtain resourc- industry. Another matter that cannot negotiate them anywhere on the es to fund the entity, to obtain be overlooked in terms of of international stage.

AUGUST 2018 International Cooperation FINDETER’S PARTNERS AROUND THE WORLD

FINANCING SUSTAINABLE PROJECTS PU 50 / 51 WE SUPPORTSUSTAINABLEPROJECTS AUGUST 2018

INPHOGRAPHY: Alejandra Sarmiento PHOTO: iStock Colombia, Findeter isoncourse to dothesame. change andreduce greenhouse gasemissions. In different timeframes thatseekto combat climate to finance projects ofvarying sizesandwith been usingthiscapitals market instrument Development banksandgovernments have TO SAVE THE PLANET TO SAVE THE PLANET bonds Sustainable PU FINANCING SUSTAINABLE PROJECTS 52 /53 VARIOUS INITIATIVES Investment (EIB). Bank and European (IFC) Corporation Finance (IDB),International Bank Interamerican Development Bank, tilateral the as World institutions by such mul- initially was boosted initiative The gas emissions. house climate change and reduce green- projects that combator large-scale out to finance or refinance small- set These emerged. subsequently from that these Green issues Bond ing to climate is change, and it decade for and adapt mitigating proposed inthe worldbeen this Findeter International Banking Findeter International Banking Ghisays Morris By MaríaFernanda

have have - WE SUPPORT SUSTAINABLE PROJECTS

The first issues led to a boom cornerstones of the Green Bonds been involved ever more frequently, in the drawing-up of principles, and Social Bonds Principles. and in some cases have had issues standards and certifications aimed 1. Use of funds. This cornerstone of this type. In Colombia, Findeter at ensuring transparency and in- 1. defines eligible investment has expressed interest since 2015 tegrity in these processes. The in- categories and criteria, bear- in joining these new markets, struments themselves were also ing in mind the green and so- which fit in with its mission to rethought and related sectors and cial project requirements and form sustainable regions. needs were expanded, resulting in types described in the Green One year later, it therefore the appearance of Social Bonds. Bonds Principles and Social signed a non-reimbursable, re- The purpose of these is to finance Bonds Principles. Eligibility gional technical cooperation or refinance projects that generate criteria and investment catego- agreement with IDB, using Swiss positive social results and reduce ries should be well defined and Economic Cooperation (SECO) poverty. As with Green Bonds, they should also provide a response funds, the purpose of which is to The first issues have in-built elements to guarantee to the mission and practices of led to a boom help the National Development worldwide issue standards. each institution. which made Banks of Colombia, Peru and More recently, Sustainable 2. Evaluation process and se- it imperative Ecuador to obtain private funds to draw up Bonds have been created, which 2. lection of projects. This principles, with adequate terms on nation- are fixed income instruments that cornerstone sets out the de- standards and al and international capitals aim to finance or refinance green cision-making process for certifications markets by issuing Green or aimed at and social projects in the same is- selecting which projects will ensuring Sustainable Bonds. This measure sue. These are in line with the four receive funds deriving from transparency seeks to impact institutions’ abil- the issue, in line at all times and integrity. ity to diversify their sources of fi- with the aforementioned nancing, to promote low-carbon principles, and for establish- activities in the country, and to ing environmental or social develop the capitals market with sustainability objectives. innovative products. 3. Administration of funds. The In a period of not less than 3. way in which funds obtained one year, Findeter has received are managed, used and pre- training in structuring, review- served by each issuing entity ing and verifying a possible first until they are utilized is estab- Sustainable Bond issue, which lished. This applies only to el- would be on the local market igible projects after they have for around 400 thousand mil- met the criteria identified in lion pesos. It should be remem- previous phases. bered that the first issue of this 4. Reports. Institutions should type on the subcontinent was by 4. state each year how funds Mexican company Retoplas in have been used on eligible June 2017, and the next one by projects and what impact Mexico’s Banco Nacional de Obras they have had, by investment y Servicios Públicos (Banobras) in category. Indicators to be re- February this year. ported are identified before If this issue were to take place, the bond is issued, for the the entity would have an innova- benefit of investors. tive operation that would also be These instruments have tak- the first of its kind in Colombia. It en on greater relevance in Latin would thus strengthen its position America because national govern- as a leading bank in promoting sus- ments and development banks have tainable projects in the country.

AUGUST 2018 IR SEAL: good corporate practices Currently only 31 companies that issue securities have the IR seal granted by the Colombian Stock Exchange. Findeter is notable for being the only financial entity in the public sector to hold this distinction.

By Andrés Felipe Sánchez L.

IR Financial Vice-Presidency, Findeter. PHOTO: Archivo Semana-Esteban Vega La-Rotta

GIVEN THE NEED to make the investments to be made in instru- and, secondly, to make a quarterly country’s capitals market more at- ments issued by listed companies. presentation of results to investors tractive in the eyes of international The two fundamental objec- and analysts in which top manage- investors, in 2012 the Colombian tives of the IR seal are to provide ment take part. Stock Exchange established an precise, prompt information about Only 31 companies that is- Investor Relations (IR) program, the company and to act as a chan- sue securities currently have the aimed at its registered issuers. The nel for direct interaction between Colombian Stock Exchange IR seal, program sets out to promote the vol- management and investors. In which is renewed on an annual ba- untary adoption of best practices on order to meet these challenges, sis if they continue to meet the re- matters relating to the disclosure of the Stock Exchange established a quirements. Several of the biggest information and relations with inves- series of requirements that issu- companies in the country are on tors, with a view to ensuring that the ers wishing to access the program this list, such as Almacenes Éxito, market can rely on sound judgment have to meet. The main ones are, Avianca, Ecopetrol, EPM, Nutresa, when making investments because firstly, to appoint an investor rela- Bancolombia and Grupo Aval. sufficient trust has been created for tions officer who has direct access Findeter is a notable inclusion on to top management and who can the list, because it is the only finan- formally communicate the com- cial entity in the public sector to hold The two fundamental objectives of pany’s strategic direction and effi- IR recognition. In 2014, as a con- the IR seal are to provide precise, ciently channel investors’ opinions sequence of the first international prompt information about the and expectations, report financial bond issue by the entity and in line company and to act as a channel information on a quarterly basis with the commitment it adopted in for direct interaction between and have a website where all finan- recent years to strengthen its corpo- management and investors. cial and strategic information is rate governance, it decided to join the disclosed in Spanish and English, Stock Exchange’s IR program.

FINANCING SUSTAINABLE PROJECTS PU 54 / 55 WE SUPPORT SUSTAINABLE PROJECTS

the entity, which results in investors having a greater feeling of trust and control over funds in- vested in the company. Once all the necessary actions required for meeting IR program standards had been implemented, the Colombian Stock Exchange granted Findeter IR Issuer Recognition in 2015 for having adopted best practices relating to the disclosure of information and investor relations. In 2016 and 2017 In it renewed Findeter’s seal and, in the latter year, the entity was 2016 recognized as one of the IR issu- and ers where program standards had 2017 evolved most, according to a study the Colombian conducted by Colegio de Estudios Colombian Stock Superiores de Administración Stock Exchange Exchange renewed (CESA), in conjunction with the Findeter’s seal Colombian Stock Exchange. and, in the IR practices promote company latter year, the entity was growth by creating investor trust To this end, Findeter began and abundant additional infor- recognized as and improving corporate manage- the process of implementing the mation that enables investors one of the IR ment behavior due to the periodic issuers where necessary measures and practic- and interest groups to obtain a reporting of financial and commer- program es for meeting the requirements full and transparent understand- standards had cial information, which leads to stipulated for accessing the pro- ing of Financiera de Desarrollo evolved most. constant exposure to evaluation gram. The first step was to set up Territorial operations. by interest groups. Meanwhile, the the investor relations office, which Meanwhile, as mentioned objective of corporate governance answers directly to the Financial above, one of the most important is to ensure that the company is Vice-Presidency. It then started to aspects of the IR program is the well managed and, hence, has the build an IR section on its website, quarterly event when results are pre- same fundamental goal as IR prac- in Spanish and English, where all sented, as this is the main point of tices, namely to promote growth the entity’s most important finan- direct contact between the company and improve management. cial, corporate and strategic infor- and the market. The most common In view of the above, the IR mation has been published ever way this is done in Colombia and in program can be said to have rep- since. This includes the Business countries where the IR figure exists resented for Findeter an overall Structure, Good Governance Code, is by streaming or videocalls, where strengthening of its corporate gov- Code of Ethics, corporate bylaws, the company president or financial ernance structure, resulting in sus- Country Code survey, the annual vice-president, together with his tained growth in recent years and Management and Sustainability team, presents the principal finan- making it the leading development Report, information about all bond cial and commercial results for the bank in Colombia. issues, risk rating information, CVs respective quarter. This method of members of the entity’s Board of provides an open channel where the Directors and Directors, quarterly market can ask questions directly and annual financial statements, to those responsible for managing

AUGUST 2018 FINDETER IS COMMITTED TO THE SDG in Colombia From the time they were drawn up, the Sustainable since 2010 for pre-investment Development Goals (SDG) have sought to reduce worldwide processes in more than a hun- dred projects, with support from poverty indices, achieve sustainable development, and international entities, thus con- improve living conditions for the people of the world. tributing to their sustainable development.

By Ana María Palau, Úrsula a long-term view of sustainable FINANCE Sola de Hinestrosa and development and a road map The rediscount credit product has Beatriz Elena Puello with an investment plan for the enabled Findeter to mobilize funds Findeter Planning Vice-Presidency coming decades. At local level, to foster infrastructure projects in the Sustainable and Competitive the country since the early days. Cities and the Emblematic Cities Between August 2010 and June IN 2015, United Nations programs, which currently have 2018 it disbursed 18.8 trillion member states adopted the over 50 member cities around pesos in loans for more than four 2030 Agenda for Sustainable the country, and at supra-mu- thousand projects. 72 per cent Development, which contains 17 nicipal and regional level, the of disbursements placed in 2017 Sustainable Development Goals Lands of Opportunities and went to the private sector and had (SDG) and 169 Targets. This the Caribbean and Santanders a direct impact on Colombia’s sus- declaration aims to end pover- Diamond programs, which im- tainable development. ty, fight inequality and injustice, pact more than 15 provinces and Findeter has included the and face up to climate change. In 180 municipalities, aim to reduce fostering of social housing, im- Colombia, CONPES Document poverty, bridge inequality gaps provements to urban passenger 3918 of 2018 established 16 and improve competitiveness, transportation systems, municipal commitments for consolidating productivity and social and en- waste management and the develop- social and economic develop- vironmental development in our ment of sustainable, resilient urban ment in harmony with the en- regions, all of which is closely in infrastructure as essential elements vironment, based on a regional line with the SDG. for ensuring that all people have ac- strategy. Financing will play a In the Sustainable Cities cess to basic services and conditions fundamental role if the SDG are and Emblematic Cities con- for competitiveness and prosperi- The Agenda to be achieved effectively, and text, Findeter has identified in- ty. Since Findeter is a development divides its 17 the Findeter integrated regional vestments totaling 35 trillion Goals into bank for sustainable infrastructure, development management mod- pesos, with 1.9 trillion pesos 169 it has therefore determined the el (plan, finance and execute) is a in disbursements being made Targets, which SDG on which it will focus its credit vehicle for doing this. to those cities and 3.2 trillion are measured funds mobilization strategy to 2030, pesos in technical assistance. by global, namely health and wellbeing, quality national PLAN Additionally, in regions involved education, drinking water and basic and local Findeter’s planning programs, in the regional planning pro- performance sanitation, affordable and clean en- in line with Goal 11, Sustainable grams, Findeter has mobilized indicators. ergy, infrastructure and innovation, Cities and Communities, adopt over 20 thousand million pesos sustainable cities, and climate action.

FINANCING SUSTAINABLE PROJECTS PU 56 / 57 WE SUPPORT SUSTAINABLE PROJECTS

By way of contribution to energy coverage and renewable provinces with the highest in- the country’s commitments, energy generation installed ca- equality levels in Colombia. Findeter accordingly designed pacity, improving national and a Measurement, Report and regional transmission system CONTRIBUTIONS TO THE Verification (MRV) model for interconnections, and leverag- ENVIRONMENT SDG finances relating to the re- ing the execution of projects SDG 13 (Climate Action) brings discount credit product. The in non-interconnected parts together investments in various MRV model has become an in- of Colombia. Between January sectors and under various SDG formation tool for analysis and 2016 and December 2017, that have seen 0.64 trillion pesos decision-making purposes for the Findeter traced the mobilization mobilized in the last two years, entity, one that aims to identify of 0.5 trillion pesos in credit re- 93 per cent of which has been gaps so that regions and sectors sources for SDG 7 (Affordable for projects that contribute to that are strategic to the country’s and Clean Energy), mainly in mitigating greenhouse gas emis- development can be served. hydroelectric generation and in sions (in other words, reducing extending or improving trans- or capturing them), principal-

(Trillion pesos) mission systems. ly through projects to generate, In the case of SDG 9 (Industry, improve or provide access to 2.0 Innovation and Infrastructure), the electricity, and mass public trans- funds mobilized for social housing, portation systems. Findeter will municipal waste management, ur- issue Sustainable Bonds worth up 1.5 ban transportation, air transporta- to 400 thousand million pesos, tion and recreation infrastructure which will combine green proj- 1.0 were grouped together, since these ects (to mitigate climate change) are critical elements for sustain- and projects that will have posi- 0.5 able communities and ones where tive social impacts. a clear need could be seen for alternatives that would increase in- EXECUTE 2016 2017 vestments in waste management Finally, Findeter provides a tech- Total SDG Total disbursements and exploitation. nical assistance, evaluation and It gives us great pleasure to supervision service for high-im- see that 27 per cent of the total pact projects and works in the SOCIAL CONTRIBUTIONS disbursed for SDG in 2016 and housing, social infrastructure, Quality infrastructure is funda- 2017 went to investments in and water and basic sanitation mental to improving mortality sectors that are financed from na- indices and to increasing the dif- tional government funds and im- ferent levels of education cover- 0 ,1 SDG 11, pact Colombians’ quality of life. 0 ,1 Sustainable Cities age, and these come under SDG 3 Between August 2010 and 0,3 SDG 9, Industry, (Health and Wellbeing) and SDG 0,7 Innovation and May 31, 2018, 8.6 trillion pesos 4 (Quality Education), respective- Infrastructure were administered in the form of ly. Findeter mobilized 0.7 trillion SDG 7, Clean technical assistance for 855 proj- Energy pesos to fund assets in the 2016- 0,4 ects in 29 provinces, which result- 2017 period, with 83 per cent of SDG 4, Education ed in over 121,000 homes being the respective beneficiaries being SDG 3, Health provided for the most vulnerable 0,5 private companies. SDG 6, Clean segments of the population, 282 0,5 Water drinking water and sanitation proj- CONTRIBUTIONS TO PROSPERITY Other ects and a further 321 social infra- Contributions made in recent Credit funds mobilized by SDG, 2016-2017 structure projects, many of them years have included increasing (In trillion pesos) in remote parts of the country.

AUGUST 2018 EXECUTE WORKS FOR PEOPLE PHOTO: Alejandro Villaquirán PHOTO: Alejandro

PU 58 / 59 WE SUPPORT SUSTAINABLE PROJECTS EXECUTE WORKS FOR PEOPLE

Buenaventura seafront, Valle del Cauca (Colombia).

AUGUST 2018 country being unblocked, but FROM FINANCING TO above all it strengthened the team and reinforced the entity’s knowledge. This competitive advantage was exploited by the Ministry of Housing when it launched its execution program to build and hand over 100,000 free homes. Transparency, teamwork and technical ability The first task was to check a are the key factors in Findeter’s success in number of plots of land in order to determine whether they were meeting the challenge of consolidating its position viable, so that this ambitious as a strategic partner for the regions. project could proceed. Hundreds of plots around the country were checked in record time and the By Alejandro Callejas HOUSING: A FIRST STEP process was deemed an outstand- Findeter Technical Vice-President One of President Juan Manuel ing success. Next, thanks to the Santos’ flagship goals during his entity’s installed capacity, techni- first period of government was to cal evaluations were carried out of build a million homes. To achieve proposals submitted for building ONE OF Findeter’s most import- this, the Priority Housing and the homes, and finally the circle ant characteristics in recent years Social Housing programs needed was closed when Findeter began has been that it has remained firm to be augmented substantially. to supervise projects carried out in its commitment to being the re- The biggest obstacle to meet- by private initiatives on-site. gions’ strategic partner by supporting this challenge lay in the fact that To date, the entity has partic- ing sustainable projects. regional institutions were unable ipated in 240 Ministry of Housing The entity took on a new to structure and present projects projects in this sector, which challenge in 2012, namely, mak- aimed at this sector. To change this translates into 120,000 houses ing the knowledge and experience situation, Findeter formed an inde- that have benefited over 500,000 of its staff in executing projects pendent technical assistance team people around the country. using an innovative, inclusive and which helped interested mayors in collective model for solving prob- these matters, and hence enabled DRINKING WATER: A WINDOW lems that arise on a daily basis in them to meet eligibility criteria. FULL OF POSSIBILITIES the country available to the na- This decision resulted in As the country worked harder tional government. many initiatives throughout the to reduce the national housing

EXECUTE WORKS FOR PEOPLE PU 60 / 61 WE SUPPORT SUSTAINABLE PROJECTS

with the transparency of the contracting and execution model. The model adopted this principle four years ago, thus anticipat- ing the law and shielding a process which, while it will no doubt have faults and is open to improvement, is today a fine example of serious- Park in Villas de San ness and transparency. Pablo, Barranquilla. The model allows processes

PHOTO: FINDETER to be public and shared among interested parties, while single bid documents guarantee pro- Today, deficit, so a related need arose: successfully assisted, benefiting more than cesses that are tailor-made for namely, to improve access to millions of Colombians. 1,268 ki- contractors. Bids are presented in drinking water and basic sanita- lometers of pipework have been 280 two separate envelopes for evalu- tion. At the time, this sector was laid and 58 treatment plants drinking water ation (technical and economic), a and basic have been built, together with 93 becoming a critical obstacle to sanitation practice that allows for an objec- progress on the path to building storage tanks capable of holding projects tive, pressure-free evaluation of cities that offered their inhabi- 92,000 cubic meters of water. have been bidder qualities. tants the minimum public ser- These are but some of the achieve- successfully Similarly, bids are awarded assisted, vices conditions. ments made as part of the revolu- providing using a random scheme linked The Ministry thus launched a tion in this sector in recent years. millions of to the representative market Water for Prosperity program, un- Colombians exchange rate, thus making it with the most der which Findeter added two new IF A MODEL IS SUCCESSFUL, IT CAN basic resource impossible for any official to ma- products to its services portfolio: BE REPLICATED for human life: nipulate the award mechanism. administration of public funds, Findeter’s technical ability, plus drinking water. Finally, decisions are made by and technical assistance in the ex- the fact that it built a model collegiate bodies consisting of all ecution of projects. based on teamwork, caught the parties involved in the project. Here, unlike the situation attention of other entities, and Trust levels in the character- with the housing programs, the this made it easier to agree on istics of the contracting process Ministry hands funds over to a multi-sector social infrastruc- have been high, and an average of Findeter for it to administer, ture partnership which has had 16 companies currently take part and as soon as it receives them results that are plain for all to in calls for bids. More than 12,000 it passes them to an independent see. More than 192 education companies have submitted bids, trust entity. As part of this pro- institutions have been built, in- and the number is still rising. cess, corporate governance and cluding 41 new schools, together Finally, the third success rules for executing the projects with 544 classrooms, 51 devel- factor can be summarized as the are established. opment centers for children un- fact that the technical abilities of The second product is tech- der the age of 5, fifty parks, 19 the team are a mixture of expe- nical assistance. This consists of libraries and 38 citizen integra- rience, a willingness to work for advising the Ministry on draw- tion centers, among other high the country, and a commitment ing up preliminary studies and social impact projects. to each and every one of their ac- terms of reference, evaluating tions. This has been fundamental bids, and providing technical su- SUCCESS FACTORS in enabling Findeter to say today, pervision of projects. Today, more Any analysis of the principal fac- with great pride, that execution than 280 drinking water and ba- tors that have contributed to the and results are two cornerstones sic sanitation projects have been success of this program must start of the institution.

AUGUST 2018 By María Claudia Valencia Coordinator, Findeter Social Administration Team INCLUSION FOR BUILDING

‘POVERTY’ IS, without doubt, a key word nowadays, one that is much used by everyone, either social fabric well or badly. Large sums of money The Social Administration Team was formed in 2016 are spent on the poor. Thousands of books continue to propose to foster Findeter effectiveness in administering solutions to the problem, while social guidelines for building social fabric in the expert advice is readily available. regions. Buenaventura, Colombia’s most important However, it seems very strange that nobody, not even the supposed port on the Pacific Ocean, is an example of how ‘beneficiaries’ of all these activities, this strategy has been applied effectively. seems to have a clear and common

EXECUTE WORKS FOR PEOPLE PU 62 / 63 communities are communities are the focal point the focal point For Findeter, For Findeter, of the works of the works its executes.

PHOTO: Archivo Semana go about its work every day. work its every go about It great promise to that it enables forregion; Findeter, isthe it Colombian forsolutions every developmentsustainable comprehensive, inmotion set is tocreation and participation experiences, them with filling 2015). Department, Planning (National and dialogue institutional manner, on social participative based processes that are ina constructed gaps by demanding social that bridge strategies inthe regionspolitical and develop national fundamentals to which propose will astructure made necessary has it development’ this ‘confronting 2007). InColombia, futurea better are (Escobar, at risk respect and of worthy persons and as the breathus life of beings human as visionthe of world that have given autonomy, personality, culture and the the world. of because Vital, parts for inthese us necessary isvitally it) ratherit, routinely than accepting (understanding inorder it to apply 2018). (DANE, Colombians 49,732,696 among of apopulation situation multidimensional poverty 2018) centthe 17per (DANE, atcontext aimed improving around Colombia’s socioeconomic based proposals development have promoted and facilitated initiatives and other civil academic, institutional, non-governmental, 1991). it?define (Rahnema, for who whom? istrained And to isnecessary, the concept. and What only the relativity of basic reflects notion This ‘deficiency’. or ‘lack’ revolve around the concept of reason for this isthat alldefinitions One is. what of poverty vision To processes assist by ‘Confronting development’ governmental,Countless agent foragent change. the becomes principal population cohesion wheresocial the civilian and the promotion an inclusive of relations institutionssocial with ofthe isastrengthening works ofunderlying the materialization results come together, that so real be when visible and intangible transformation wellbeing. will This with to provide people abilities and social structural political, economic,have the necessary where the different will regions transformation inColombia, processes that guarantee will projects in motion implies setting communities. Colombian of needs inresponseprojects to the tangible comprehensive, sustainable strategies that to it enable deliver and assistance supervision devise can it objectives, sustainability innovationstrategic capital, and relation,market efficiency, customer-integrating financial, promotes By inclusion. social defendsthat and respects, nationwide development. reference of point when talking a become has for projects, those providing technical assistance lifeof for and also allColombians, that improveprojects will quality infrastructure of and financing structuring is why the planning, transformation. guarantee regional processes thatwill setting inmotion projects implies development To talk of To development talkof Findeter is an entity ceptance, appropriation, a appropriation, ceptance, sense provided for favoring works, ac where technical assistance is different levels incommunities and environmentally activating step inmobilizing and culturally diversity. isakey inturn, This, and cultural genderas equality such principles basic moting and pro while respecting - ries, - the direct be who will beneficia those of experiences everyday from but also figures theficial only from not that the derive of there the real to recognize needs to isto listen, learn and from egy for guideline this stratportant one.ment isa lasting to promote develop enterprise ing that the impact this great of spaces are for up opened ensur increased,is firstly after which awareness all the of wellbeing of the collectivemon values exist, on com- based at skills forging tive aimed participation citizen ciety. aculture and anac When transformation- so inColombian to move towards aopportunity isaunique and participation, trust solidarity,state, on respect, based and the institutions munities, com- individuals, lations between to restore and re the being human - cornerstone. Workingthe principal tors and having the population as indifferent ac bringing of virtue for fabric. building social administration guidelines social of company effectiveness inthe this proposal aimof isto fosterThe administrationa social strategy. through marketing on social based technicalits assistance product, of commitmenton anew part as The principal and most im- principal The ispossible by strategy This In 2016, Findeter embarked WE SUPPORTSUSTAINABLEPROJECTS AUGUST 2018 ------of belonging and, above all, active inhabitants had access to drinking breadwinners in their households, social participation. water only every third day, there teachers, parents, various sports All of this materializes in a plan was a lack of quality education teams, youths, children, the where we have social guidelines infrastructure, and there was no ombudsman, and journalists. containing six components. These appropriation of public space or of The second component was Communities include a group of interinstitutional were involved areas where people could relax and respecting and protecting the and community activities that from the time enjoy leisure activities. environment and biodiversity. identify possible changes in the works The social management plan People were made aware of the started, and people’s environmental, social and participative strategy sets out the six compo- importance of the work and its economic surroundings. Actions design nents. The first component, un- benefits, and also of the need are also established to create workshops derstanding the region, consisted to use the environment well and were held conditions that will allow local where people’s of carrying out a participative, care for it, with a view to ensuring and regional communities and opinions socioeconomic and cultural diag- that the project would be accepted administrations to interrelate in on the final nosis. Partners and risks were socially. At various meetings, designs were a context of participative creation also identified. To achieve this, community leaders described how taken into and environmental sustainability, account. national government bodies to leave a mark on Bahía La Cruz with a view to boosting the like the Ministry of Housing, seafront, to contribute to caring for envisaged socioeconomic benefits Ministry of Commerce, Ministry the environment and to consign of the project and hence generate of Education, and the Social the violence that has affected the social wellbeing. Prosperity Department were con- city so badly to the past. It was as In order to illustrate the sulted, and at regional and local a result to this latter concern that work done by Findeter with this levels, the provincial government the Buenaventura Sows the Seeds social administration strategy, the and City Hall. of Peace strategy was born. program to begin a transformation Other important partners The aim of the third of Buenaventura can be described, included the Buenaventura component, human management since the company has taken Chamber of Commerce and and hiring manpower from the part in the transformation of an When the its members, public services region, was to improve relations area that has historically been project started companies in Buenaventura such between hired personnel and in Buenaventura, the community and to create the victim of an exclusive model there was no as Hidropacífico and Empresas noted for local corruption and appropriation of de Energía del Pacífico, traders job opportunities for local abandonment by the state. public space or on First Avenue, the bishop and people. To achieve this, Findeter When projects first started in of areas where priests, the president of Asojuntas, recommended that non-qualified people could Buenaventura, Colombia’s principal relax and enjoy the presidents of the Communal labor should be hired in the port on the Pacific Ocean, the local leisure activities. Action Boards, women who are the region. Staff were trained in safety PHOTO: FINDETER

EXECUTE WORKS FOR PEOPLE PU 64 / 65 WE SUPPORT SUSTAINABLE PROJECTS measures and in building processes so that they could execute the different projects. The fourth component, communication and dissemination, consisted of providing ample opportunities to spread information, in order to answer people’s concerns BIBLIOGRAPHY and worries about the projects. Communities were involved from • National Violence the time the works started, and Reference Center (2017). 2016 Forensis. Datos para participative design workshops la Vida. Bogotá: Instituto were held where people’s opinions Nacional de Medicina on the final designs were taken Legal y Ciencias Forenses. into account. • DANE (2017). Technical The fifth component was Bulletin. Informative social assistance in technical Communication. DANE. • DANE (2018). activities. All technical activities Multidimensional that required assistance by the PHOTO: FINDETER Poverty Statistics. social team were duly carried out Bogotá: Press Release. and reported, such as drawing up This strategy sought to recognize the real needs • DANE (2018). Reloj de neighborhood and commitment of the different population groups. Población. Retrieved 23/04/2018 from DANE minutes, and reports were Strategic Information: supplied which illustrated good http://www.dane. management of items that could regional- and local-level social gov.co/reloj/ have altered the environment. actors. A cultural, environmental • National Planning The sixth component, namely and social mobilization and Department (2015). Plan monitoring, evaluation and activation was also achieved, Nacional de Desarrollo 2014-2018. Todos por follow-up, consisted of carrying resulting in approval, appropriation un Nuevo País. Bogotá: out measurements, analyzing and acceptance of the different Departamento Nacional results and identifying where works and a sense of belonging de Planeación. there was room for improvement, with respect to them. The aim was • Escobar, A. (2007). La in- so that corrective measures could also to hear what the real needs of vención del tercer mundo. Construcción y decons- be applied. Tours of the works the different groups were and to trucción del Desarrollo. were arranged with various take them on board through joint Caracas, Venezuela: actors, such as Social Prosperity, creation, so that products could be El perro y la rana. co-administrators, priests, the generated that would improve local • Hernández, J.M. president of Asojuntas, the inhabitants’ quality of life. (December 10, 2017). presidents, vice-presidents and For Findeter, communities La Triste Paradoja del Puerto de Buenaventura. treasurers of communal action are the focal point of the works Retrieved April 6, 2018, boards, and the general community, its executes. We aim to reduce from El Espectador: with a view to checking progress, poverty levels by adding an extra https://www.elespectador. encouraging active participation, ingredient, namely recognizing com/economia/la-triste-pa- and creating a sense of belonging and empowering people as radoja-del-puerto-de-buenaventura-articulo-727663 based on continuous, prompt human beings with values like • Rahnema, M. (1991). communication. perseverance, passion and love, Global Poverty. A The aim of this strategy was to and thus to give communities a Pauperizing Myth. bring together different national-, new meaning. Interculture 24(2), 451.

AUGUST 2018 A transformation exercise

By Findeter Technical emblematic city process were the national government and provincial Vice-Presidency first long-term strategic plan- and district governments, with the ning proposals for the region, result that it can today be said with As part of Findeter’s aim and the aim of these was to build pride that 95 per cent of the works of providing regions with a collective vision based on five have been completed and accepted a tool for carrying out cornerstones in response to five as satisfactory. different approaches, namely so- A transverse focus of the wor- sustainable projects to cial, economic, urban, competiti- ks carried out in Buenaventura in improve people’s quality of life, veness and governance. accordance with the technical assis- Buenaventura is becoming The Buenaventura described tance and funds management mo- in this exercise is not just the one del was on working in the sectors a clear example of executing that its inhabitants deserve, it is that were the most important for comprehensive projects. also a reflection of the city’s po- the city, namely public services, edu- tential because of its strategic cation, and urban renovation. location, the natural riches of its surroundings, and the cultural di- DRINKING WATER PROJECTS A FIRST commitment to versity of its people. One of the principal issues that aro- Buenaventura was taken on in se from the planning exercises was 2012, when Findeter opened an FROM PLANNING TO ACTION the need to establish a robust plan office in the area so that it could Once sectors had been defined, a for ensuring that the district could engage in an intensive local dia- start was made on a process of exe- provide people with an efficient and logue and consolidate its com- cuting comprehensive projects that decent water supply service. The mercial tools. Once the office was sought to attack the city’s main and various working groups came up open and the local team had been most immediate problems and thus with an emergency plan consisting hired, Findeter began to define a set in motion a plan that would re- of four priority works that would, long-term urban planning process sult in a transformation of the city. at least, eliminate service cuts due that prioritized investments and The technical assistance and to turbidity in the Escalerete river. targeted efforts by the national funds management program ena- This Ministry of Housing government and various sub-na- bled Findeter to serve as a tool in emergency plan was managed by tional entities. the execution of projects by various Findeter, which executed and sa- The ‘Buenaventura we de- ministries and entities and in an tisfactorily handed over optimiza- serve, 2050 Master Plan’ and the exercise in teamwork between the tions of the Venecia and Escaletere

EXECUTE WORKS FOR PEOPLE PU 66 / 67 WE SUPPORT SUSTAINABLE PROJECTS A transformation exercise STEP BY STEP

drinking water treatment plants, a was provided for the San Antonio the inhabitants and improving their 3,800m3 storage tank, and a 27-inch residential complex, involving an quality of life. The community was distribution pipeline. The cost of the investment of more than 1,262 mi- therefore involved in the different projects was 34 thousand million llion pesos, and a very ambitious stages of the projects, so that we pesos, and they were handed over to project was carried out that will be- could understand the real context, the municipality for it to administer nefit residents and visitors to the city engage in dialogue, and act on the and operate in early 2018. alike, namely the first phase of the problems that were identified and Buenaventura waterfront project. requested. Programs were also in- SCHOOLS The Bahía de la Cruz wa- troduced to encourage belonging Work was also done at five schools, terfront, an emblematic project and generate identity with projects mostly in areas outside the city executed by Findeter, is an unpre- carried out by the community. center. This Ministry of Education cedented, high-impact architectural These projects are set in a project, which was executed by work in this municipality and will complex social context that requi- Findeter, directly benefits more become a tourist attraction throu- red not only Findeter’s technical than 1,400 children. The total cost ghout the Pacific region. It is worth ability and commitment but also a of the education infrastructure pro- highlighting the fact that 330 work- search for solutions to social needs jects was 8,751 million pesos. They men were involved in building it, the in order to provide sound, lasting have all now been handed over and vast majority of whom live nearby infrastructure that will encourage are serving the community. The fi- and therefore earned income from and promote citizen participation ve schools involved in the project it. Attractions include two sports and development. are the José Ramón Bejarano, Niño pitches, a small theater for cultural Bringing to fruition these 11 Jesús de Praga - Antonio José Ruíz events, children’s games, commer- strategic projects that focused on center, Niño Jesús de Praga - main cial modules, a kiosk, pedestrian improving living conditions for the center, Pablo Emilio Carvajal, and zones and footpaths, a cycleway, people of Buenaventura was achie- Atanasio Girardot. public bathrooms, and benches and ved because of the technical ability other places to rest. Two additional and commitment of each member AREAS FOR RECREATION features are the planting of over 800 of Findeter staff, who made it a AND LEISURE trees and restoration of one of the priority to hand over the promised As mentioned above, urban reno- city’s emblems, the lighthouse. works not only to improve people’s vation and social impact areas were The technical assistance that quality of life but also to rebuild built, which are vital for the inha- was provided for 11 projects in trust in institutions, something the bitants of Buenaventura. A park Buenaventura focused on serving entity today feels very proud of. INSTITUTIONAL Findeter IN FIGURES

Plan *FIGURES 2010 - JUNE 2018

LOCAL PLANNING SECTOR PLANNING

SUSTAINABLE AND MOBILITY COMPETITIVE CITIES

ASSOCIATED DISBURSEMENTS $1,7 287 17 CITIES TRILLION PROJECTS CITIES PROJECTS

EMBLEMATIC CITIES

DESEMBOLSOS ASOCIADOS:

$225 28 TOD-NAMA €14,7 CITIES THOUSAND MILLION PROJECTS NAMA TANDEM MILLION

REGIONAL PLANNING

COMPETITIVENESS STUDIES 6

TOURISM INNOVATUR BOLÍVAR PROVINCIAL LOGISTICS AND TRANSPORTATION LAND OF LAND USE MAGDALENA PLUS 1 OPPORTUNITIES 2 PLANS

AGRICULTURE AND ENVIRONMENT AGRÓPOLIS BOSQUES DE PAZ REGIONAL REGIONAL SCIENCE, TECHNOLOGY AND INNOVATION URBAN FOOTPRINT DEVELOPMENT SANTANDER LIFE STUDY 1 3 VISIONS

BARRANQUILLA 4.0 Sarmiento Alejandra INFOGRAPHIC:

INSTITUCIONAL PU 68 / 69 WE SUPPORT SUSTAINABLE PROJECTS

Finance *FIGURES AUGUST 2010 - MARCH 2018

INFRASTRUCTURE AND TRANSPORTATION ENERGY $5.3 $2.8 TRILLION TRILLION THOUSAND JOBS CREATED HOUSING, WATER AND TRILLION BASIC SANITATION INNOVATION AND IT PROVINCES $4.3 $229 TRILLION THOUSAND MILLION MUNICIPALITIES MILLION HEALTH AND BENEFICIARIES EDUCATION OTHER $5.3 $888 PROJECTS TRILLION THOUSAND MILLION

Execute

SUPERVISION DURING THE CONTRUCTION OF

TRILLION 122 THOUSAND HOMES, 610 THOUSAND PEOPLE WHICH BENEFITED

PROVINCES 191 60 PROJECTS SCHOOLS THOUSAND NEW PLACES

WATER $2,2 290 TRILLION PROJECTS 113 LEISURE AREAS: PARKS, INFRASTRUCTURE LIBRARIES, ETC. $957 321 THOUSAND PROJECTS MILLION 96 DRINKING WATER 93 100,000 HOMES STORAGE TANKS THOUSAND CUBIC $2,1 51,146 METERS CAPACITY TRILLION HOMES

VIPA-CASA AHORRO 60 OVER DRINKING WATER MILLION $3,1 64,944 TREATMENT PLANTS BENEFICIARIES TRILLION HOMES 14

AUGUST 2018 INSTITUTIONAL

INNOVATION AND KNOWLEDGE innovation and knowledge management transversally in the institution, in order to generate a strengthening of the institution MANAGEMENT and essential elements of competitiveness, development and value creation. These strategies have Findeter’s differential value strategies in its been consolidated as a result of the development bank activities help to generate Findeter Center for Innovation and wellbeing and to transform regions into Knowledge (CIC) being formed. Findeter views knowledge sustainable territories. management as a strategy for developing fundamental instruments that enable corporate objectives By Rodrigo Lozano S. Coordinator, Findeter Center for strategy that enables innovative to be achieved. The commitment Innovation and Knowledge (CIC) actions to be devised for generat- here consists of creating and imple- ing new programs, products, ser- menting a knowledge management vices and processes that optimize model that consists of a logical, or- the entity’s capabilities. ganized and systematic process for AGAINST A background of contin- Innovation and knowledge capturing, coding, storing, trans- The innovation management at Findeter thus ferring and applying essential ual transformation, technological and development, research, construc- knowledge translates into key strategies for knowledge, experiences, values and tion and collective discussion of in- management creating differential value, with a contextualized information. stitutional positions with respect models add view to facilitating the response Relevant actions in this process value to the to the problems and needs of peo- development to new challenges in an oppor- include recognizing the institu- ple and territories, Findeter needs of the entity. tune and contextualized manner. tion’s intellectual capital, including to meet many major challenges if, It is most definitely a question of human, relational and structural as a development bank, it is to pro- setting in motion an open, coop- capital, and taking into account the vide the best responses. erative ecosystem that promotes technological infrastructure, the Internal strategic planning exercises have resulted in frequent proposals and initiatives for the organization to adapt, resulting in

such things as structural modifica- FINDETER

tions and improved internal man- Foto: agement processes, procedures, leadership management, cooperative teamwork, regulatory development, planning, and innovation and knowledge management. One of the strategic guidelines resulting from these activities has been to identify the needs of interest groups, specifically regions and their cities, and to convert them in- to a source of sustainable competitive advantages by displaying an effective knowledge management

INSTITUTIONAL PU 70 / 71 WE SUPPORT SUSTAINABLE PROJECTS surroundings of the applications, processes in many municipalities has been promoted since 2015 as integration challenges, innovation towards more urbanized cities with one of the institution’s explicit needs, corporate imperatives, the complex economic dynamics and values, and it has become a cor- organization’s cultural preparation, constant technological advances. nerstone of the entity’s strategic and products derived from the The entity appreciates the ad- plan, giving it a formality and knowledge generated. vantages of adequate knowledge relevance and making it an in- Reflecting on, and carrying management, and it has therefore strument of competitiveness. As out a critical internal analysis of, developed and drawn up a theo- of now, innovation should be a the various staff experiences in retical model that corresponds to further hallmark of products and relation to their everyday activi- implementing the strategy. This services, giving the entity a differ- ties and then making the knowl- model is currently at the testing ential value. Its formalization and edge generated, together with and adjustments stage. appropriation by Findeter should details of successful cases and Innovation at the bank is mean staff and citizens having the lessons learned from mission and deemed to refer to the ability to opportunity to create spheres of entity support processes, visible generate differentiated, ingenious, action that enable them to think, throughout the organization is a creative and profitable solutions to share and do, together. big challenge. It can be defined as meet the needs, expectations and Given the direction that the key knowledge that is acquired and demands of its interest groups, institution’s presidency has taken transferred in order to provide the the market and the regions, and and based on the setting-up of the intended competitive advantage to foster social wellbeing for Knowledge of CIC, the Findeter innovation mod- regions and and value, namely having a posi- Colombian people. interest groups el is now promoted. This initiative tive impact on the entity’s devel- Findeter has become a nation- gives the has the following objectives. opment and growth. al reference point for innovation development To formalize the innovation pro- bank a In the case of Findeter, the ex- in recent years, due to its regional cess at the entity and to systemati- differential ternal approach to the knowledge planning programs and products value. cally take it on board. management strategy is condi- that are tailor-made to meet the To generate new knowledge and tioned by and directed at knowledge needs of regional entities. One ex- ideas that will enable new prod- of the region’s needs, local admin- ample of this is the Caribbean and ucts, processes and services to be istration entities, and transition Santanders Diamond program, developed, or existing ones to be which won the 2015 World Smart improved. City Awards in the most innova- To be the medium through which tive idea category and the 2017 all staff at all levels in the organiza- ISOCARP Award for Excellence, tion can culturally appropriate the granted by the International Society process, contribute to innovation of City and Regional Planners. with their ideas, and promote the There is currently a high level philosophy of “doing things in a of innovation in the products it of- different way”. fers its interest groups. Although To generate a top-ranking mana- this added value has not initially gerial instrument that is capable of been developed in a formal man- making a substantial contribution ner as part of an innovation con- to the success and the develop- cept, it has shown signs of the ment of the entity. positive results, in terms of prog- The model was developed in ress in regions and in the country, 2017 and is currently at the im- that are obtained by introducing plementation stage. This has four this approach. components: the strategy, the cul- Due to external recognition ture, the process, and the structure and internal guidelines, innovation of interrelations for innovation.

CIC team. AUGUST 2018 INSTITUTIONAL Portfolio OF PRODUCTS REDISCOUNT CREDIT 2 • ORDINARY FUNDS AND SERVICES • COMPENSATED RATE

REGIONAL PLANNING 1 • REGIONAL PLANNING • LOCAL PLANNING • SECTOR PLANNING

INSTITUTIONAL PU 72 / 73 WE SUPPORT SUSTAINABLE PROJECTS

MANAGEMENT AND ADMINISTRATION 4 OF FUNDS • MANAGEMENT OF DIRECT FUNDS TECHNICAL • MANAGEMENT OF ASSISTANCE, PROJECT OUTSOURCED FUNDS 3 MANAGEMENT • DRAWING UP AND STRUCTURING PROJECTS • STRENGTHENING INVESTMENT OPERATION AND ALTERNATIVES SUSTAINABILITY 5 • PORTFOLIO PURCHASE • VIABILITY • PUBLIC STOCK • APP VALIDATION MARKET ISSUE • STRUCTURING • SUPERVISION INFOGRAPHIC: @soy_vito

AUGUST 2018 The X Factor in development banking

ALDEMAR MORENO

PHOTO: Archivo Semana Editor in chief, Dinero magazine

COLOMBIA HAS a long tradition of development ban- And it is precisely this that the country has king institutions. The goal of this type of entity is to been doing, because during the last decade various promote specific sectors that are key to the economy. initiatives have sought to bring new ideas and a Today it is easy to explain this principle, but the story new direction to sector promotion, through another is marked by a debate of tremendous importance. kind of intervention. The rise of these institutions presupposes an The result of this is a development bank fabric answer to the worrying question of how countries can in Colombia that has proved to be both favorable and achieve wealth and development. There are those who effective. Examples include Banco Agrario, Banco consider that economies can develop their full poten- de Comercio Exterior de Colombia (Bancoldex), tial simply if the state concentrates on defining clear Financiera de Desarrollo Nacional (FDN) and rules for all parties involved in the economy, who Financiera de Desarrollo Territorial (Findeter), all of should then interact freely without any intervention which have been playing a key role. by public institutions. These institutions have successfully boosted But this view ignores the fact that the very deve- specific sectors and activities. Many exporters have lopment of societies implies a bias toward imbalance, succeeded in conquering new markets by using the which results in many sectors lagging behind. mechanisms established by Bancoldex, FDN has used Others therefore consider that there is a need for its funds to encourage investors to invest more priva- development policies if this situation is to be overcome. te capital in 4G projects, and Findeter has designed a This latter approach is the one that Colombia has adop- credit line that has been used to build new education ted, hence the long development banking tradition in the infrastructure at the majority of the most important country. At one point, even Banco de la República played a universities in the country. key role in financing specific sectors, such as coffee. These are merely some examples of how deve- In the case of industry, the now-defunct lopment banking has become key to the Colombian Instituto de Fomento Industrial (IFI) had the task of economy developing its full potential. There can be planting the seed and boosting growth in many of the no doubt that the challenges are enormous and the country’s manufacturing sectors. These experiences work to be done is complex, but in all this, develo- have obviously revealed the challenges that this type pment banking will continue to play a key role in of initiative has to face, because there is room for leveling the playing field for all parties involved in improvement in any policy. the economy.

COLUMNA PU 74 / 75 APOYAMOS PROYECTOS SOSTENIBLES IS WITH COLOMBIA IS WITH COLOMBIA IS WITH COLOMBIA N C R N E R MEDELLÍN R Tel.: (4)6046570-6046571-6046946 BARRANQUILLA Cra. 43B # 16 - 95, oficina 1113 BUCARAMANGA Tel.: (5) 358 7970 Edificio Cámara Colombiana Tel.: (7) 630 2043-652 6569 Cra. 52 # 76-167, oficina 510 de la Infraestructura Calle 35 # 19-41, oficina Torre Sur 411 CARTAGENA Includes Antioquia and CÚCUTA Tels.: 301 363 9541-310 730 6022 Chocó provinces. Cel.: 300 565 4935 Barrio Chambacú Edificio Av. 5 # 13-82, oficina 310 Inteligente, oficina 625 Barrio Centro Edif. Centro de Negocios 5 Avenida MONTERÍA Includes Arauca, Norte de Santander and Santander Tel.: (4) 781 6480 provinces, and municipalities in southern Cesar. Cel.: 321 249 9199 Calle 31 # 4-47, oficina 603 Edificio Los Ejecutivos SANTA MARTA Cel.: 300 444 6375-300 618 6721 C Calle 24 # 3-95 Edificio Banco R de Bogotá, oficina 807 PEREIRA SAN ANDRÉS (6) 335 8701-335 8703 Cel.: 315 770 2403 Cra. 13 # 13-40, oficina 404B Cra. 2 # 4-61 Diagonal a Yamaha SINCELEJO Includes Caldas, Quindío and Risaralda provinces, and municipalities Cel.: 320 228 7574-310 602 2320 in northern Valle del Cauca. Cra. 20 # 27-87, piso 3 Edificio Cámara de Comercio

Includes Atlántico, Bolívar, Cesar, Córdoba, La Guajira, Magdalena, San Andrés and Providencia, and Sucre provinces. C R BOGOTÁ P Tel.: (1) 623 0370 Calle 26 # 59-41, oficina 705 Edificio R Cámara Colombiana de la Infraestructura CALI Tel.: (2) 332 1899-332 1900 S VILLAVICENCIO Cra. 100 # 11-90, oficina 412 Cel.: 317 656 9787 R Centro Comercial Primavera Urbana Calle 15 # 40-101, lobby 2, oficina 612 PASTO NEIVA Cel.: 301 376 1918 Tels.: (8) 871 4123-871 7768 Includes Bogotá and Amazonas, Cra. 33A # 19-75, piso 2 Cra. 5 # 10-49, local 102-103 Boyacá, Casanare, Cundinamarca, Avenida de los Estudiantes Edificio Centro Comercial Plaza Real Guainía, Guaviare, Meta, Vaupés and Vichada provinces. Includes Cauca, Nariño and Includes Huila, Putumayo, Valle del Cauca provinces. Tolima and Caquetá provinces.

A MODEL THAT MAKES DREAMS COME TRUESOMOS EL PUENTE QUE ACORTA DISTANCIAS ENTRE LO POSIBLE Y LO IMPOSIBLE P L A N TERRITORIES1

FINANCE 2SUSTAINABLE PROJECTS

E X E C U T E TETER WE MAKE IT APPEN WORKS FOR PEOPLE 3

Customer care line: ndeter ndetercol ndeterweb ndeter1 E SPPORT SSTAINABLE PROECTS