Mexico City, Mexico — The Development Bank of Latin America and the Caribbean (CAF) has approved $300 million USD to strengthen Mexico’s electrical infrastructure. The funding contributes to the development of projects for the expansion and modernization of electrical networks throughout Mexico.
More than 1,870 kilometers of networks will be deployed to benefit more than 44 million people across the country.
CAF, the development bank of Latin America and the Caribbean, approved a credit facility for $300 million dollars (USD) in favor of the Federal Electricity Commission (CFE).
The money is intended to partially finance the Plan for Strengthening and Expansion of the National Electric System, in particular, transmission and distribution infrastructure.
With the approval of this loan, a financing instrument is expected to be granted to support the needs of the Commission’s investment plan as well as part of its general needs.
The funding will be implemented in two complementary tranches: i) a loan of up to $200 million dollars with a term of up to 15 years for the partial financing of electrical infrastructure projects and ii) a revolving credit line of up to $100 million dollars to meet short-term needs related to working capital or other general purposes.
Sergio Díaz-Granados, CAF’s Executive President said “this financing reflects CAF’s commitment to a just energy transition in Latin America and the Caribbean. Supporting Mexico in strengthening its electricity infrastructure means contributing to ensuring access to reliable, quality energy for industry, as well as for millions of people throughout the country, impacting the region’s competitiveness.
CFE’s Finance Director Eugenio Amador Ouijano said “the support of development agencies such as CAF is fundamental for the Federal Electricity Commission to efficiently execute strategic infrastructure projects for the National Electric System through financing on favorable terms.
“This type of loan helps reduce the company’s financial costs and increase the economic and social impact of the projects being developed,” he stated.
According to the CFE, their 2025-2030 Expansion Plan includes investments of approximately $30 billion USD. They reported that 57% of this is allocated to generation, 30% to transmission and 13% to distribution and telecommunications.
CAF’s resources will contribute to the partial financing of the Commission’s investments in several projects scheduled to begin operations in 2026 and 2027.
The CFE (Comisión Federal de Electricidad) says around 16 projects, totaling approximately US$1.549 billion, which are part of the electricity transmission and distribution investment plan to be implemented throughout Mexico, from the Northwest in Chihuahua, through the State of Mexico and other central states, to the Southeast in the Yucatán Peninsula.
CFE, established in 1937, is the Mexican state-owned company that provides electricity to the country. With a social focus, it contributes to delivering energy throughout Mexico.
It currently serves 49.6 million customers, achieving 99.8% population coverage nationwide, and operates over 111,000 kilometers of transmission lines and nearly 908,200 kilometers of distribution networks.
CAF, the Development Bank of Latin America and the Caribbean, has the mission of promoting sustainable development and regional integration by financing public and private sector projects, providing technical cooperation, and offering other specialized services.
Established in 1970 and currently comprised of 24 member countries, 22 from Latin America and the Caribbean, along with Spain and Portugal, and 13 private banks, it is a leading source of multilateral financing and a significant generator of knowledge for the region.
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