Revista Pensamiento Urbano Edicion No. 7 English

PENSAMIENTO URBANO

AUGUST 2018

No. 07

BUILDING

NO. 07

A MODEL THAT MAKES DREAMS COME TRUE

ISSN 2463-042X

AUGUST 2018

B O G OTÁ D . C .

SUSTAINABLE TERRITORIES

TOGETHER WE MAKE IT HAPPEN

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PHOTO: Cámara Lúcida-Felipe Mesa

Rincón del Mar, San Onofre village, Sucre

WE SUPPORT SUSTAINABLE PROJECTS

CONTENTS COVER PHOTO: Luis Felipe Osorio

EDITORIAL.......................... 5 NEWS.................................. 7 INTRODUCTION “Development and peace are built from the regions”.

Mauricio Cárdenas Santamaría........................... 8 Optimism in Davos........... 12 OECD: benefits for local development banking........... 14 FDI and resources for sustainable development .... 16

Challenges facing urban development and alternatives for financing them .............. 20 Development banks in Colombia.......................... 22 PLANNING TERRITORIES Without regional planning there can be no sustainable development........................ 26 Cities at the forefront.......... 30 Colombia’s future depends on the effectiveness of its metropolises.................... 34 A model to bridge gaps....... 36

Building citizenship with live plans and tactical town planning........................... 38 FINANCING SUSTAINABLE PROJECTS Financing: the key to regional development........................ 42 The region’s partners.........44 First-tier banking support ..46 Votes of confidence from around the world................. 48

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56 International cooperation.

Findeter’s partners around the world ............................. 50 Sustainable bonds to save the planet ........................... 52 IR seal: good corporate practices .............................. 54 Findeter is committed to the SDG in Colombia.................. 56

EXECUTE WORKS FOR PEOPLE From financing to execution ............................. 60 Inclusion for building social fabric..................................... 62 A transformation exercise, step by step.......................... 66

IINSTITUTIONAL Findeter in figures............... 68 Innovation and knowledge management........................ 70 Portfolio of products and services .............................. 72 COLUMN The X factor in development banking................................. 74

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TOGETHER WE MAKE IT HAPPEN

DIRECTOR Alejandro Torres Parra atorresp@semana.com

GENERAL EDITOR

CENTRO DE INNOVACIÓN

Nicolás Peña Ardila

Y CONOCIMIENTO

EDITORIAL COORDINATOR Natalia Perdigón Beltrán

EDITOR Rodolfo Enrique Zea Navarro

SECRETARY GENERAL

Fabián Elías Paternina Martínez

Janneth Márquez

COMMERCIAL DIRECTOR Felipe Lezama flezamav@semana.com

PUBLISHING HOUSE

Ángela Delgado Natalia Ocampo

PRODUCTION DIRECTOR

Andrés Gómez Posada

Ana María Palau Alvargonzález Vice-President, Planning Diana Jimena Pereira Bonilla Manager, Planning and Administration Rodrigo Lozano Suaza Coordinator, Center for Innovation and Knowledge Erika Andrea Delgado Moncayo Communications Director Claudia Salamanca Velásquez Communications Management María Eugenia Rubiano Sánchez Head of Marketing María González Buitrago Leader, Publications, and Issue Coordinator

COMMERCIAL MANAGER

PROOFREADING

ART EDITOR

EDITORIAL COUNCIL

Sandra Suárez Pérez

Proyectos Semana S.A. Tel.: 646 84 00 Publicacionessemana.com

José Luis Barragán

FINDETER PRESIDENT

GENERAL MANAGER

DESIGN Helber Guerrero Rubiano Martha Ayde Arias César Benito Lozano María Fernanda Ponce Miguel Montenegro

Orlando González Galindo

PREPRESS Publicaciones Semana S.A.

PRINTING Quad Graphics S.A.S. Printed in Colombia Publicado en Bogotá

DIRECTOR OF PHOTOGRAPHY Mario Inti García

PHOTOGRAPHY EDITOR Clara Moreno

PHOTOGRAPHY AND PRODUCTION Carlos Vargas y Andrea Lozano

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

PHOTO: FINDETER

WE SUPPORT SUSTAINABLE PROJECTS

FINDETER: PLAN, FINANCE, EXECUTE IT WAS IN 2010 that we at Findeter began the transition that would convert us into a development bank that transforms regions into sustainable territories, and to this end we devised and Implemented a model with three cornerstones: plan, finance, and execute.

The model has gradually matured as we have worked with local leaders and authorities, planning their regions, identifying needs and opportunities, and generating solutions based on the regions themselves.

We have become the strategic partner of the regions, offering them comprehensive, sustainable solutions so that they can carry out projects that generate wellbeing for their people. Our technical assistance has led us to be considered an effective vehicle through which the national government can implement public policy in the regions, enabling the Colombian economy to be more dynamic in priority sectors like water, education and housing due to our financial and integrated regional development products.

Our first cornerstone, PLAN, is where we identify the principal strengths and opportunities for building a region-based vision, and we design a road map with strategic short-, medium- and long-term projects, with a view to achieving a planned, sustainable, balanced and inclusive development. It was from this cornerstone that we implemented the Sustainable and Competitive Cities program, with Interamerican Development Bank support, and the Emblematic Cities program, enabling us to reach 51 intermediate cities, for 28 of which we have drawn up plans of action, incorporating exercises with a supra-municipal perspective, such as Sabana

Rodolfo Enrique Zea Navarro, President, FINDETER.

Centro (11 municipalities) and the Sincelejo-Corozal axis, with investments totaling 35 trillion pesos identified and 1.9 trillion pesos in disbursements.

Notable at regional level is the assistance we have provided in supra-municipal planning processes (large built-up areas, municipality associations, provinces and regions) for designing and implementing territorial complementarity programs or strategies, local economic development and urban-rural planning, through such initiatives as the Caribbean and Santanders Diamond, the Land of Opportunities program, and technical advice for Provincial Land Use Plans.

In order to achieve greater integrality when meeting regional needs, our sector planning also involves our working on transverse issues like sustainable mobility, urban transformations, green growth and creative, cultural industries, resulting in projects being executed that leverage medium- and long-term development and wellbeing processes for inhabitants.

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191 education establishments, over 41 schools with 544 classrooms, 51 development centers for children up to the age of five, 50 parks, 19 libraries and 38 citizen integration centers, among other high social impact projects.

We also supervised the building of over 122,000 homes, which benefited vulnerable, displaced and poor families, and in the water and basic sanitation sector we provided technical assistance for the laying of 1,154 kilometers of pipeline in water supply and sewage systems, and for the construction of 96 storage tanks with a total drinking water storage capacity of 93,000 cubic meters, plus 60 drinking water and waste water treatment plants, all of which benefited more than 14 million Colombians.

As a development bank, we appreciate that the solution to the growth in people’s needs requires coordination, a joining of forces, and a sharing of resources and actions between the national government, local authorities, the private sector and academia, while respecting the characteristics of each region.

In this issue of Urban Thought we want to explain and highlight the model for our actions and the results of our efforts to generate wellbeing for people: a model that makes dreams come true.

TOGETHER WE MAKE IT HAPPEN!.

PHOTO: FINDETER

Our second cornerstone, FINANCE, involves us in facilitating the mobilization of credit funds to finance important infrastructure projects that make regional competitiveness more dynamic and improve the provision of basic services. Between 2010 and June 2018 we thus disbursed 18.3 trillion pesos in funds in 414 municipalities around the country, in such sectors as infrastructure and transportation (5.3 trillion pesos), housing, water and basic sanitation (4.3 trillion pesos), health and education (5.3 trillion pesos), energy (2.8 trillion pesos), innovation and IT (229 thousand million pesos), and recreation, culture, environment and fiscal consolidation (888 thousand million pesos).

The third Findeter cornerstone, EXECUTE, closes the circle and is the area where we have developed the technical and operational skills to bring to fruition the execution of infrastructure works included in priority national government programs for which entities like the Ministry of Housing, Ministry of Education, Ministry of Culture, Ministry of the Interior, Coldeportes, DAPRE, NPD and ICBF, mainly, are responsible. This multisector alliance in the social infrastructure sphere has enabled us to assist in the execution of 864 projects in 291 municipalities and 29 provinces around the country, involving a total investment of 8.7 trillion pesos, notable among which are the construction of more than

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Find out more about Findeter

PHOTO: Archivo Semana

WE SUPPORT SUSTAINABLE PROJECTS

Montería is part of the Sustainable and Competitive Cities program headed by Findeter and is working on strategic projects to improve competitiveness and productivity in the area.

Initiatives being undertaken by Montería City Hall, with support from Findeter, include setting up the country’s first river transportation system, Línea Azul, which aims to exploit 14 kilometers of the River Sinú in order to connect north and south Montería by means of 15 landing stages, and producing the detailed design for the traffic light system and Integrated Control Center, with a view to progressing toward sustainable mobility.

PHOTO: Archivo Semana

MONTERÍA COMMITS TO BEING A SUSTAINABLE CITY

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 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 initiatives like introducing strategic public transportation systems with integrated cycleways aerial cablecar routes where transfers are free and transportation networks that include escalators or, in the case of Ibagué, elevators.

COMPTROLLER’S OFFICE GIVES FINDETER FINANCIAL RESULTS A FAVORABLE RATING The control entity conducted its annual audit of Findeter’s financial statements, including its financial situation, profit and loss statement, changes in shareholder equity and cash flow statements for 2017, as well as budget information, and no findings were revealed.

As far as the internal financial control evaluation was concerned, the rating was 1.0, which corresponds to ‘efficient’, since, to quote the Comptroller’s Office, “the adequate design of controls and the effectiveness of these in the financial process were evident”.

PHOTO: Archivo Semana

MEDELLÍN: TRANSPORTATION LEADER

The acquisition of 22 new trains for Medellín Metro involved an investment of 380 thousand million pesos, 55 thousand million of which were financed by Findeter. One of the Metro’s main aims is to meet growing demand, and to this end, maintenance work has been carried out on the trains and the fleet has been enlarged so that journey frequencies can be improved. The Metro carries an average of around a million passengers per day on its two lines.

FINDETER SUPPORTS INFRASTRUCTURE WORKS IN BARRANQUILLA Construction of the promenade along the riverbank and sports venues for the 2018 Central American and Caribbean Games is one of the City Hall Development Plan projects that has been financed by Findeter. In addition to these projects, as at May the company had disbursed 222 thousand million pesos for building, refurbishing and maintaining education facilities in the city, building the riverside promenade, the green corridor and River Avenue, resurfacing roads under the Streets for Life program, and expanding 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.

ALT HOUGH COLOMBIA has achieved some of the highest economic growth rates in its history in the last decade, with hitherto unheard-of figures in foreign trade and direct foreign investment, the country still needs to overcome many challenges before it can compared with first world countries.

The 2030 Agenda, which was approved by the United Nations General Assembly in 2015, stressed the sustainable development challenges that the world is facing, including Colombia. With a view to meeting these challenges, progress is being made on strengthening development policies and financing.

Pensamiento Urbano talked about this subject of general interest with the Minister of Treasury and Public Credit, Mauricio Cárdenas Santamaría, who also referred to the impact that the new General Royalties System (GRS) will have on the regions, the Peace Agreements and the post-conflict, among other matters.

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PENSAMIENTO URBANO: HOW HAS COLOMBIA BRINGING THE 2014-2018 NDP INTO LINE WITH THE 2030 GLOBAL AGENDA AFFECTED THE COUNTRY? MAURICIO CÁRDENAS:

Bringing the 2014-2018 NDP into line with the Global Agenda has had many benefits for the country.

Firstly, having the NDP in line with the Development Agenda simplifies international cooperation processes and also processes with other actors, since it makes it easier to ensure that national priorities and needs coincide with the interests of external cooperating parties and other actors. Secondly, it enables the Regional Development Plans of provinces and municipalities to be brought more closely into line, and it is envisaged that it will help stimulate continuity in regional entities over various election periods. Thirdly, it enables the country to devise follow-up schemes for the NDP and the

Sustainable Development Goals (SDG) that do not duplicate government efforts or lead to excess costs. And fourthly, it strengthens the long-term vision of the NDP and its various components.

P.U.: WHERE DOES THE BIGGEST CHALLENGE LIE, IN TERMS OF FINANCING, FOR ACHIEVING THE AGENDA’S GOALS? M.C.: It lies in the vast scale of the

financial and non-financial resources that need to be mobilized if those goals are to be achieved. This manifests itself in many smaller challenges that we have to deal with if we are to meet that big challenge successfully. These include increasing tax collection without affecting the country’s competitiveness, in terms of both production in Colombia and attracting national and foreign investment, and also reducing corruption, continuing to increase efficiency in public expenditure, reducing tax

WE SUPPORT SUSTAINABLE PROJECTS

Mauricio Cárdenas Santamaría, Minister of Treasury and Public Credit.

“The biggest financing challenge for achieving the 2030 Global Agenda goals lies in the vast scale of the financial and non-financial resources that need to be mobilized for achieving those goals”.

evasion and avoidance and illicit financial flows out of the country, reinforcing international cooperation on tax matters, and creating mechanisms for mobilizing more private resources, especially toward sectors that are traditionally less attractive for private investors.

better represented and have a greater influence on their development. And it makes it possible for these policies to bridge gaps and speed up regional development, especially in regions that have benefited least from the country’s economic growth.

P.U.: HOW EFFECTIVE IS THE LOCAL FINANCING OF INVESTMENT INITIATIVES IN REGIONAL ENTITIES? M.C.: Investments by development

banks have had a positive effect on regional entities because the work 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 locally. Improving infrastructure always means bringing development to areas that have historically been overlooked because of a conflict that has finally ended.

P.U.: WHAT ROLE HAVE DEVELOPMENT BANKS PLAYED IN THE REGIONAL ENTITY FINANCING PROCESS?

I n C o l o m b i a t h e re a re banks, such as Financiera de Desarrollo Nacional (FDN) and Findeter, which specialize in offering project financing solutions that promote regional development. The essential goal of these institutions is to provide comprehensive solutions which bridge gaps in the financial market and help mobilize sources of finance toward production projects that encourage regional development in key sectors like infrastructure.

These entities also offer advisory, management and overall project structuring services, so that regional entities can have a partner with high technical qualities, thus enabling them to execute

M.C.: P . U . : H O W H A S T H E CO U N T R Y BENEFITED FROM STIMULATING THE REGIONAL APPROACH IN PUBLIC POLICIES CENTERED AROUND BRIDGING THE PRINCIPAL GAPS AND DEVELOPING THE REGIONS?

PHOTO: Archivo Semana

M.C.: Stimulating a regional approach

to implementing public policies brings many benefits in terms of effectiveness and economic performance in the regions those policies are aimed at. It means that policies can be tailor-made to suit the specific characteristics and needs of each region, thereby increasing their effectiveness and impact. It makes the policy implementation process more democratic and participative, because communities feel that they are

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.: T he National P lanning 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 intensified poverty. The Peace Contract is a strategic instrument for coordinating projects and sources of finance against the background of the Framework Plan for Implementing the Peace Agreements. It is also a focal point for synchronizing institutional and financial efforts during the transition toward a scenario of stable, lasting peace in the country.

P.U.: HOW HAVE THE REGIONAL FUNDS FOR PEACE CONTRACTS WORKED?

55.7 per cent of the COP 9,295,000,000 that are to be invested in peacebuilding in Bolívar, Sucre, Meta, Guaviare, Guainía, Caquetá and Valle del Cauca provinces, equivalent to COP 5,175,947,000, will be contributed by the nation. A further 31 per cent, COP 2,880,684,000, will be provided by the provincial governments and municipalities where Peace Contract works will be carried out. Priority projects in the 164 municipalities, where funds are already being injected, include water, sewage

M.C.:

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Left to right: Findeter President Rodolfo Zea, Sala Fundadores President Guillermo Cárdenas, CES University Principal Jorge Osorio, and Minister of Treasury Mauricio Cárdenas.

and electricity networks, schools, health centers, roads, farming sector infrastructure, agricultural projects, cattle raising and rural housing.

P.U.: WHAT EFFECT HAS THE NEW G E N E R A L R O YA LT I E S S Y S T E M

cent in 2017. Moreover, the big winners in terms of regional entity investments financed by royalties have been the transportation, education, science and technology, drinking water and basic hygiene, and housing sectors.

HAD ON REGIONAL ENTITY FISCAL PERFORMANCE?

P.U.: RECENTLY, YOU SAID THAT

On average, the General Royalties System (GRS) has provided half the capital income of regional entities, from the start.

This has been 13 trillion pesos per year, on average, between 6 and 7 trillion of which have come from the GRS. The pattern has been less constant over time in terms of expenditure, due to the biannual nature of the System. However, between 2014 and 2017, 25 per cent of regional entity investment was financed from royalty funds, on average, the exact figures being 31 per cent in 2015 and 17 per

E D U C AT I O N I S H I N D E R I N G D E -

M.C.:

INDUSTRIALIZATION. WHAT IS THE BIGGEST INVESTMENT ACHIEVEMENT FOR DEVELOPMENT IN THIS FIELD IN THE REGIONS? M.C.: Because the education budget has risen considerably (since 2014 it has been number one on our budget scale), education coverage, mainly in the technical, technological and university fields, has increased. This translates into more jobs since, because of this investment, more people are ready to enter the job market and to contribute to regional

WE SUPPORT SUSTAINABLE PROJECTS

sell their produce, and these areas will therefore gradually develop.

P.U.: HOW DID THE ‘PEACE OCAD’ PLAN THAT YOU HAVE LED COME INTO BEING

PHOTO: FINDETER

IN ALL THIS?

development because they have received a better education.

P.U.: IN THE MEDIUM TERM, HOW CAN WE GUARANTEE THAT DEVELOPMENT POLICIES WILL BE ADHERED TO IN THE POST-CONFLICT PERIOD?

There is a legal framework, endorsed by judicial bodies, which obliges us to comply with the Peace Agreements in the most efficient manner possible. Because of this, we drew up a highly detailed timetable for the disbursement of funds down to 2031, in order to effectively adhere to this scenario that will benefit the countryfolk who have suffered most from the ravages of war.

The principal method for going about bridging the gap between city and countryside is also underway, since the investments we are making in minor roads will mean that it will be easier for farmers to

M.C.:

M.C.: The General Royalties System (GRS) is unquestionably a fundamental instrument for implementing the Final Agreement, not just because it is a source of finance for investment in the regions but because it is based on a shared vision that peace and the country’s economic, social and environmental development are built from the regions, by consensus at all levels of government. The national government therefore proposed that a series of transitory measures be included in Article 361 of the Political Constitution for the next 20 years that will allow seven per cent of GRS income and 70 per cent of the financial returns on the System’s Sole Account to be allocated to peace, to investment projects that will meet the challenges imposed by complying with and implementing the Final Peace Agreement and providing reparations for victims. Priority is given to regional entities most affected by the armed conflict.

“The NPD’s Peace Contracts have become a crucial tool for implementing peacebuilding policies and projects in Colombia”.

the other 50 per cent to the Peace Allocation Fund (for projects defined by the Peace OC AD).

Adjustments were later made to the 2017-2018 GRS budget so that seven per cent of this income could be allocated, equivalent to 510.78 trillion, and this sum is now available for allocation to the investment projects approved in the Peace OCAD. P.U.: WHAT HAS THE COUNTRY’S GREATEST DEVELOPMENT FINANCING ACHIEVEMENT BEEN? M.C.: One of the biggest has been achieving financial closure for eleven fourth-generation concession projects. These now have firm commitments totaling around 18 trillion pesos from local and international banks and institutional investors. The new institutional framework for evaluating projects with entities like the National Infrastructure Agency, and also the new legal framework for public-private partnerships established in Law 1508 of 2012, have been key to simplifying implementation of the Project Finance scheme and thus financing infrastructure developments in the country.

P.U.: AND THE BIGGEST CHALLENGE?

P.U.: HOW MUCH HAS BEEN LEVERAGED THROUGH THIS INITIATIVE? M.C.: Initially, COP 1.4 trillion in royalties were transferred from the Science, Technolog y a n d I n n o v a t i o n F u n d to f i nance trans p or tat ion infrastructure projects, 50 per cent of this sum to the Re g ional Development Fund (for projects defined by the Regional Collegiate Administration and Decision Bodies - OCADs) and

Looking to the future, and given the needs set out in the I n t e r m o d a l Tra n s p o r t a t i o n Master Plan, the principal financing challenges will continue to be related to financing the major infrastructure plans. It is therefore important for projects to go on being well structured and to be to the highest standards, so that local and international financiers can be confident when they invest in these types of initiatives.

M.C.:

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Optimism IN DAVOS

The main message related to the recovery in the global economy after the crisis in 2008. Governments were also urged to prepare workers 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.

A t t h e Wo r l d E c o n o m i c 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 deliberations, details were published of the conclusions drawn and the challenges facing governments and the global production sector in the coming years.

The main conclusion in terms of the economy was that global production had improved for the first time since the 2008 financial crisis.

This was based, among other factors, on the 3.9 per cent per year global GDP growth projection for 2018

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and 2019 made the day before the Forum started by the International Monetary Fund (IMF).

As far as the labor market is concerned, reference was made to the need to prepare workers for the future. This means that governments and the production

sector should provide the necessary guidance for ensuring that the millions of workers who, it is envisaged, will lose their jobs as a result of technological changes brought about by the Fourth Industrial Revolution will be able to find a new one that is well paid.

WE SUPPORT SUSTAINABLE PROJECTS

PHOTO: AFP

The Forum was attended by over three thousand participants, including 45 heads of state and 70 leaders.

On matters relating to the environment, safeguarding the oceans and all marine resources was the challenge that was put forward. To this end, a 4.5-million-dollar contribution by the Swedish government and the UN was announced. Another conclusion reached in this area was that the question of waste management and pollution should be looked at. Here, details were revealed of the Platfor m for Accelerating the Circular Economy (PACE), which will deal with matters relating to the pollution caused by electronic and plastic waste, which currently represents more than nine per cent of total recycled waste.

On gender issues, world governments were urged to continue to bridge gaps in this field. The Davos Forum celebrated the fact that Chile had become the fourth country in Latin America to join this global initiative. It was also pointed out that a further five countries are expected to join over the course of this year.

A further message on this subject was addressed to the production sector. The Forum concluded that female entrepreneurs should be empowered. The first step in this direction was taken by India, with a contribution of 100 million Rupees toward enabling women at

The message about generating added value was that innovation needs to be speeded up. To this end, the UpLink platform was launched, which sets out to help escalate entrepreneurial initiatives in this respect.

the base of the social pyramid to access capital for setting up their own business venture.

The conclusion reached on technological matters by the Davos Forum was that the digital gap needs to be bridged. This means that countries should look for ways to achieve universal internet access on the five continents. An initiative carried out by the government of Peru was highlighted in this respect.

Another final message related to the fight against cyber threats. Since this is considered to be one of the fastest-growing problems, the Forum established a World Cyber Security Center, tasked with creating a safe operating environment for such new technologies as artificial intelligence and drones.

The fight against financial crime and modern slavery was presented as a phenomenon that affects the finances not just of countries but also of their inhabitants. An initiative to focus on combating money laundering and people trafficking was thus presented, with a view to creating awareness among world leaders, fostering the exchanging of information, and improving compliance practices.

The conclusion reached with respect to the media was that fake news has become a global phenomenon. An initiative was thus presented that sets out to fight for the eradication of this type of information, and an opportunity was created for promoting the dissemination of high-quality news content.

The final message about generating added value was that innovation needs to be speeded up. To

this end, the UpLink platform was launched, which will set out to escalate entrepreneurial initiatives in this respect. Undertakings will be able to contact multinationals, investors and academia, thus making it easier for them to do their work on this market.

Those present were also urged to strengthen ethics in science.

The group of young scientists who attended the Forum presented an Interdisciplinary Code of Ethics, the aim of which is to safeguard high behavior standards and provide clarity in social norms so that they can work independently.

There was also a call to ensure sustainable protein production. From now on, the aim is to identify how to transform future safe meat and protein production, in order to guarantee that these are affordable and sustainable as demand increases rapidly and the planet moves toward having a population of nine thousand million by 2050, as the United Nations stated many years ago.

Finally, the Forum turned its attention to air transportation and concluded that there is a need to improve passenger safety. A digital passenger identity prototype was accordingly presented, which incorporates emerging technologies like biometrics and blockchain, the aim being to maker flying safer.

In an atmosphere of optimism, the World Economic Forum issued a final message to the effect that production activity on the planet is growing. The countdown has thus started to Davos 2019, when progress on each of the conclusions drawn and challenges raised this year will be reviewed.

AUGUST 2018

OECD:

BENEFITS FOR LOCAL 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 Juan Manuel Santos expressed when his initial period as President began, and it will be one of his last achievements as his second mandate draws to a close. On August 13, 2010, he made this challenge to the country’s industrialists at an ANDI Assembly and on May

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25, 2018, he announced that the Organization for Economic Cooperation and Development (OECD) had agreed to Colombia becoming its 37th member.

“Seven years of hard work to get this excellent news: the OECD Council has approved Colombia’s entry. We’ve joined the

big leagues!”. This was the message the President tweeted, and it neatly summarizes, albeit without mentioning it, the fact that the national government completed the 23 tasks set by the organization for the country to become the third in Latin America to join, after Mexico and Chile. What does this mean?

PHOTO:AFP

WE SUPPORT SUSTAINABLE PROJECTS

After a process lasting eight years, Colombia has finally joined OECD.

Fedesar rollo A ssistant Director Camila Pérez Marulanda believes that “being accepted into a good practices club is a very important step. It is recognition of the work the country has done over a period of several years, and at the same time it raises various challenges for the future”.

Pérez is of the opinion that among other obligations, the country will have to ensure that free competition is achieved in terms of international trade, to be strict in publishing its statistics, and be demanding on matters relating to corporate governance in public and private entities that want, for example, to join and remain in the securities market.

César Ferrari, who holds a doctorate in Economics from the University of Boston (United States) and is a professor in the Economics Faculty at Javeriana University, explained that joining this organization, which was formed in 1961, opens up new scenarios for the country in various fields of development.

“Colombia is facing enormous challenges in terms of economic policy, regulatory policy, inflation policy and health policy, and there will be regular visits by the organization when recommendations will be made. Although countries are free to either take recommendations on board or reject them, it will be very hard for the government of the day to turn them down”, the academic added.

DEVELOPMENT BANKING

Development Banking in Colombia will reap the benefits of the country joining OECD. According to BBVA Bank Chief Economist

Alejandro Reyes, membership will mean better facilities being available for accessing greater international funding. “In specific terms, for Development Banking it means having a fast route for getting endorsements and projects, special financing, and even favorable rates.

It’s like passing through an electronic toll point: if you can’t do so, you have to stand in line and wait to be allowed to pass, but if you can, it’s simpler and faster”, he said.

Alianza Valores Economic Research Manager Iván Felipe C amp o s b e l ie ve s th at apar t from being “a seal of quality for Colombia’s commitment to the essence of liberal, market-favorable securities”, it reinforces the activities engaged in by this type of institution. “The experience of Chile (2010) and Mexico (1994), the only Latin American members of OECD, shows that there can be a significant improvement in foreign investment flows and in cutting interest rates, which are two key factors for Development Banking.

Obviously, given that Colombia has enjoyed these types of benefits despite not being a member, membership could be expected to help maintain stability in these two variables”, he explained.

According to Javeriana professor Ferrari, the organization could be expected to recommend that the country’s financial system, including Development Banking, be made more efficient. He added that all matters relating to the transparency of these institutions will be reinforced.

On the question of the implications for local Development Banking, Alejandro Reyes pointed out that “there could be more

“For Development Banking it means having a fast route for getting endorsements and projects, special financing, and even favorable rates”, said BBVA Bank Chief Economist Alejandro Reyes. projects to be evaluated. A situation could also arise where better funding is available at a better cost for carrying out various projects.

It should be remembered that in Colombia there are still gaps in many indicators and that good practices are needed if further progress is to be made and they are to be made sustainable. Development Banking will play a fundamental role here with OECD if the significant progress that is still required in infrastructure and public policy is to materialize”.

According to Fedesarrollo Assistant Director Camila Pérez, changes can be envisaged on the boards of entities of this kind where the state has a shareholding, such as Findeter, Bancoldex, FNA and Finagro. In practice, she explained, OECD recommends that there should be no high-ranking government officials, such as Deputy Ministers and/or representatives of portfolio managers, on these boards of directors.

After nearly eight years, Colombia has joined OECD and the country’s development banking will enjoy benefits that will make it more efficient as it goes about its mission activities.

AUGUST 2018

DFI AND RESOURCES FOR SUSTAINABLE

PHOTO: Cámara Lúcida-Cesar Duque

development

Jepírachi wind farm, in La Guajira province near Cabo de la Vela and Puerto Bolívar.

Development Finance Institution (DFI) are pioneering the financing of environment-friendly investments in Latin America and the Caribbean, including ones relating to urban development.

By Edgardo Álvarez

Secretary General, Latin American Association of Development Financing Institutions (ALIDE)

CITIES OCCUPY around two

per cent of the Earth’s surface.

However, they generate 70 per cent of GDP, consume over 60 per

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cent of energy, produce 70 per cent of greenhouse gas emissions and 70 per cent of solid waste, and in them are concentrated 54 per cent of the world’s population, a figure that the United Nations expects will rise to 66 per cent by 2050.

According to the UN, between 1990 and 2014 the number of megacities in the world, each with

more than ten million inhabitants.

Together, they had 453 million people, equivalent to 12 per cent of the world’s urban population. 16 of them were in Asia, four in Latin America, three in Africa and a similar number in Europe, and two in North America. It is calculated that by 2030 there will be 41 cities with more than 10 million inhabitants.

Urban grow th in L atin America and the Caribbean has been rapid since the second half of the 20th century. The growth rate was over 50 per cent in the early sixties, then rose to 60 per cent in 1975, 70 per cent in 1990 and

WE SUPPORT SUSTAINABLE PROJECTS

80 per cent in 2013. This means a growth rate of more than 30 per cent in half a century. Figures for 2015 show that urban growth in the region reached 82.1 per cent, the highest in the world.

The world’s urban population rose from 2,300 million in 1994 to 3,900 million in 2014. One year later it passed the 4,000 million mark and it is expected to reach 6,300 million in 2050. Present or new cities will have to accommodate 1,400 more people in Asia, 900 million more in Africa and 200 million more in Latin America and the Caribbean, according to UN-Habitat.

Urban growth has led to socioeconomic development opportunities and a sustainable lifestyle that today exert great pressure on infrastructure and the demand for resources, notably in the energy, education, health, transportation and communications sectors. And it has also had an impact on job creation activities, especially for a young, empowered labor force seeking a better quality of life, better public services, environmental sustainability, greater social and economic inclusion and political participation.

This is occurring against a backcloth of recover y prospects in the global economy (3.9 per cent worldwide growth in 2018, according to International Monetary Fund projections), but with more uncertainty and states that lack the necessary agility and resources for meeting demand, due to fiscal problems.

If these people’s increasing needs for public goods and services are to be met, state-run policies, programs and projects

are required in conjunction with the private sector that foster sustainable, inclusive development.

This, in turn, will require significant investments to be made in the different sectors, due to the high demand for services, jobs, investment in physical connectivity channels and communications and, in general, in improving quality of life. This is where the big challenge lies for Development Finance Institution (DFI).

Unlike in the last decade, countries in Latin America and the Caribbean today have less room to maneuver when it comes to making the investments that are needed in economies to boost development and meet people’s needs. The present situation in the region is nevertheless different because the subcontinent has unprecedented strengths. With few exceptions, countries have more instruments available, have strengthened their basics, and have financial and monetary systems that are more active.

THE DFI ROLE

The DFI are acting on four fronts.

The first is to support infrastructure development, company modernization, product diversification, the rise of innovative companies, the development and reinforcement of micro-, small and medium-sized businesses and their entry into international markets, innovation and technological development, and the development of sustainable cities and of knowledge and innovation.

The second front is to train human capital through better basic and technical education, with an entrepreneurial vision. The third is

Almost half of the

3.900

million city dwellers were concentrated in areas with fewer than half a million inhabitants.

greater internationalization in order to assist Latin American companies, attract investments, gain a presence on international capital markets so as to obtain funds at lower cost, establish cooperation agreements with national and international banks and finance agencies with a view to promoting bilateral trade, and provide technical assistance. And the fourth is to support the financing of environmental projects that strive for sustainable production and protect the environment.

In the New Urban Agenda (NUA), where the official debate aims to find out how local financial systems, with their respective tax bases and capabilities, can guarantee the necessary resources for urban infrastructure and cope with the expansion of cities and rapid urban growth processes, the key issue is to identify innovative, effective financial mechanisms like those the DFI have created and implemented to help meet all urban needs.

Thus, because of the role the DFI play, their ability to mobilize public and private resources and their unique position for acting effectively on markets and in the regions, they are key partners when it comes to implementing urban policies and facilitating the drawing-up of NUA initiatives that can be executed in a practical manner.

The DFI in Latin America and the Caribbean, as well as in other parts of the world, have pioneered environment-friendly financing and investments even for urban development. 52 per cent of these explicitly contain an environmental financing program, line or initiative or have a financing

AUGUST 2018

component in their ordinary programs for such purposes.

In the field of energy, they suppor t company e fficienc y through the implementation of new installed electricity generation capacity using non-conventional renewable energies.

Similarly, they engage in actions elsewhere in the region in other sections of the economy, such as transportation, where work is in line with the policy of changing the energy matrix and reducing the dependency on oil by converting vehicles to use natural gas, renovating the vehicle fleet and financing mass public transportation systems that pollute less.

SUCCESSFUL CASES

In Peru, Corporación Financiera de Desarrollo (COFIDE) contributed through its Cofigas program to the natural gas-based production and consumption transformation process. This directly benefited 216,966 vehicle users, generating impacts totaling 6,288 million dollars, reducing carbon dioxide emissions by more than 2.5 million metric tonnes and bringing 103,300 new customers into the financial system, quite apart from the plentiful new investments deriving from the program.

In Ecuador, Cor poración Financiera Nacional (CFN) set up a Vehicle Fleet Renewal program (RENOVA), which is a joint initiative with the private sector that aims to improve efficiency in public transportation expenditure (subsidy). As at June 2016, it had financed more than 10,000 vehicles and placed over 251 million dollars in loans nationwide, providing the state with a direct saving

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on hydrocarbon subsidies and an indirect one in various areas, such as environmental costs and public health. 146 million gallons of fuel were saved between 2008 and 2015, together with a saving of 261 million dollars in state subsidies.

In Mexico, Sociedad Hipotecaria Federal (SHF) is carrying out its Ecocasa program in conjunction with the Interamerican Development Bank (IDB) and KfW (Germany). This consists of a financial incentive and technical assistance package to support housing developers as they design and build homes that generate fewer greenhouse gas emissions.

By the end of the first quarter of 2016 around 2,000 “eco-homes” had been financed, with 210 million dollars in loans granted during the first phase and 27,600 homes built, which will result in at least one million fewer tonnes of CO2 being generated in 40 years.

In Colombia, Financial Development Territorial (Findeter) is carrying out a Sustainable and Competitive Cities (SCC) program in association with IDB. The aim is to identify, validate, prioritize and support the implementation of strategic, transformative actions in the country’s intermediate cities, with a view to promoting sustainable, competitive development.

Unlike in the last decade, countries in Latin America and the Caribbean today have less room to maneuver when it comes to making the investments that are needed in economies to boost development and meet people’s needs.

The SCC program is an innovative, multi-sector planning proposal from an overall, strategic viewpoint, based on prioritizing critical, comprehensive actions.

The proposed plan of action for each city sets out a short- and medium-term strategy for achieving growth that is more sustainable, inclusive and competitive. This plan is defined as a result of coordinated, cooperative work by a wide-ranging interdisciplinary group from the municipalities, local IDB specialists, and Findeter.

Findeter provides easier loans than private banks do and it can leverage funds from royalties, public-private partnerships and private investments, as well as contributions by the municipalities themselves, which can also receive loans.

In Chile, Corfo has introduced its strategic Digital Transformation

PHOTO: iStock

WE SUPPORT SUSTAINABLE PROJECTS

and Smart Cities program. This represents an unprecedented challenge for promoting economic growth and productivity in the country. The aim of the various parties involved is to look at future scenarios through projects that have a bearing on productivity and sustainability and will enable progress to be made toward diversifying production. This program could achieve a saving of 275,000 pesos (approximately 500 dollars) per inhabitant per year.

CONCLUSIONS

In their efforts to increase available financing with adequate terms and conditions for environment-friendly projects, governments in the region have brought in their development banks in order to boost the structuring and financing of climate change mitigation and adaptation projects.

By 2030 it is calculated that there will be 41 megacities. Tokyo is currently one of the most densely populated cities, with over 30 million residents.

A development bank is widely known on local credit markets, thus enabling it to easily identify and generate public-private projects and provide the necessary coordination between the relevant actors in national climate change agendas. It also has multilateral funding, which acts as a counterpart to other sources of external funds, provides second-floor funding, which encourages risk-taking by financial intermediaries, and grants partial loan guarantees and syndicated financing with financial intermediaries and national agencies with ad hoc funds.

The DFI involvement in supporting investments in environment-friendly projects related to urban development manifests itself in various ways. By designing and implementing investment funds and financing lines or programs, the DFI enable resources

to be mobilized via special programs or specific lines of finance, and with ad hoc resources for these purposes, but as these programs progress, a component is incorporated to finance specific projects, such as optimizing water use, energy efficiency, or green homes and buildings.

Passive products have been devised for capturing resources that are designed to finance environmental projects or initiatives.

Development banks, especially second-floor ones, are very active on capitals markets. They exploit the possibilities offered by their access to these scenarios, where they capture 13.7 per cent of their resources, on average.

This figure rises to 25 per cent in the case of second-floor banks.

Viewed from another angle, these indirectly inf luence improvements to the environment.

AUGUST 2018

Challenges FACING URBAN DEVELOPMENT AND ALTERNATIVES FOR FINANCING THEM

PHOTO: CAF

Strengthening a city’s ability to improve the wellbeing of its inhabitants depends to a great extent on public policy and how it manages to exploit the economic benefits of urbanization and reduce social costs.

BY Luis Carranza Ugarte

Executive President, CAF, Development Bank of Latin America

CITIES ARE THE MAIN driving

force behind a country’s development, because it is there that the most complex production processes and the ones with the greatest added value are concentrated, as well as the best job opportunities.

This goes a long way to explaining the rapid growth in the urbanization process in recent years, especially in developing countries.

In Latin America, the second most urbanized region in the world after North America and the one that has recorded the highest urban

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An accessible city reduces effective distances between people and companies and boosts the benefits of the built-up urban area.

population growth rates since 1950, cities with over 200,000 inhabitants produce more than three quarters of regional GDP but have less than half of the region’s population.

At the same time, however, it is in these urban centers on the subcontinent where the highest informal settlement figures are reported. Between 20 and 30 per cent of Latin Americans live in homes where access to services is precarious and, in many cases, they have no title deeds.

Many cities in the region are noted for their high levels of informal housing, and this, together with informal public transportation, limits access to formal job opportunities for a significant percentage of the inhabitants. This ‘triple informality’ (housing, transportation and jobs) is largely responsible for the low productivity and wellbeing levels that exist.

How can the opportunities that cities offer be exploited? Their ability to improve citizen wellbeing depends, crucially, on public policy and how this manages to take advantage of the economic benefits

of urbanization and reduce social costs. In other words, urban investments should be aimed at promoting ‘accessibility’ in cities.

The accessibility concept refers to the extent to which firms and homes are able to enjoy the opportunities the city offers. Productivity increases when firms can hire qualified manpower, obtain quality materials and achieve a stable demand for their products. Wellbeing improves when people can get more and better jobs, decent housing, quality services and entertainment opportunities, and can socialize with people who share similar tastes and interests. The concept summarizes the effect that economic and social interaction has on productivity and wellbeing in an urban context. An accessible city reduces effective distances between people and companies and boosts the benefits of the built-up urban area.

We at CAF believe that this can be achieved by intervening in three major spheres of policy: land use planning and regulation so that the city can grow in an orderly manner, transportation infrastructure to encourage mobility, and making the real estate market more dynamic and hence stimulating access to formal housing and basic, quality services.

The way to ensure that these three aspects of policy are integrated in the urban environment is through metropolitan governance schemes that take into account the need for regional and sector coordination.

The absence of a strategy for integrating these three policy aspects in an adequate metropolitan governance context has thus hindered attempts by cities in the region to absorb migration flows

WE SUPPORT SUSTAINABLE PROJECTS

inefficiencies. On the one hand, high prices can be put down to a lack of flexibility in residential properties that are available, and on the other hand, average Latin American incomes are low, which means that only certain sectors of the population have access to decent housing. When to these problems are added an increasing number of migration flows to cities in the region, informal settlements naturally spring up that have no access to good-quality, basic public services and where it is impossible for people to fully enjoy the opportunities that urban centers offer.

Financing for comprehensive policies in these three areas is a major challenge. However, local governments on the subcontinent do have limited access to credit

Our proposal is that governments should increasingly and effectively adopt financing instruments that will enable them to exploit changes in the value of land resulting from modifications to regulations governing its use.

mechanisms via national and international banks. Our proposal is therefore that they should increasingly and effectively adopt financing instruments that will enable them to exploit changes in the value of land resulting from modifications to regulations governing its use.

There are various very interesting examples in the region of where this type of policy has been applied, such as in SĂŁo Paulo, Brazil, and attempts could be made to replicate them in other Latin American cities. These instruments enable two critical aspects of urban policies to be coordinated, namely planning for cities to expand as they grow and financing the necessary water and sanitation infrastructure to allow for sustainable, inclusive urban growth.

View of Rocinha, a favela in the southern part of Rio de Janeiro, Brazil.

PHOTO: i Stock

and grow in size in an orderly manner, and hence facilitate access to the economic and social opportunities they offer.

On the land use planning and regulation issue, one key point is the fact that if cities are to grow in terms of both size and density, land use regulations need to be made more flexible, to favor residential and mixed use, and to foresee the space that will be needed for transportation infrastructure and public areas. When regulations are too strict on these matters, they encourage disorderly urban growth without the necessary infrastructure and go part way to explaining why house prices rise.

As far as mobility is concerned, policies worth highlighting include ones that set out to balance 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 times of day or taxing the driving 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 proportion of the population is excluded from the formal residential market in Latin America due to its

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

PHOTO: Findeter

COL OM B I A’ S F I N A N C I A L

Coffee plantation in Chinchiná, Caldas

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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 sector growth and innovation has become a prime target for our banks,

WE SUPPORT SUSTAINABLE PROJECTS

which have worked to finance Colombia’s rural areas for years.

In the public sector there are two entities, namely Finagro, a second-floor bank that allocates funds to financial intermediaries so that these can, in turn, grant loans directly to rural producers, and Banco Agrario which, in conjunction with private banks, manages loans for production projects and the transformation or marketing of sector products and services.

According to Finagro figures, banking has had a significant impact on sector financing, since farmers and rural producers (small, medium-sized, large or associated) in 1,016 municipalities around the country benefited from loans or micro-loans in 2017. This means that 92.2 per cent of the country was covered.

In terms of number of operations, it can be seen that while the majority of the substitute portfolio relates to medium-sized producers, 93 per cent of the rediscount line corresponds to loans granted to small farmers. At least as far as quantity is concerned, most of the rediscount and the substitute credit is reaching small and medium-sized producers. On the other hand, it can be seen from the value of operations that most of the substitute portfolio has gone to large producers while the rediscount portfolio has mainly been used for granting loans to small producers.

An analysis of the breakdown of credit by recipient shows that the substitute portfolio has mostly financed working capital, whereas the rediscount portfolio has financed investment. The

rediscount portfolio, which is associated with small producers, is thus being used for investments in the sector, while the substitute portfolio, for working capital, is ensuring continuity for projects that are under way and is contributing to growing the economy.

Finagro has also introduced credit lines for small, medium-sized and large farmers through various financial entities, which rediscount funds.

Meanwhile, establishment of the Farming Guarantees Fund (FAG) and the National Guarantees Fund (FNG) has enabled small producers without guarantees to access financing.

T hese results ref lect the effor ts that have been made.

Firstly, Finagro has worked to expand product and service coverage by creating various credit lines aimed at the small, medium-sized and large producer and at low-income rural women and rural small businesses; and secondly, commercial banks have acted to promote and channel resources to this sector.

In the case of exports, Bancoldex is the entity responsible for financing the country’s export sector and, hence, the Colombian economy’s internationalization process. 70,000 companies received support in 2017 from this bank, which disbursed 3.58 trillion pesos. The bank principally finances the modernization and the working capital needs of companies of all sizes. Its financing concentrates on small and medium-sized businesses, since more than half of its total loan disbursements are to this segment. Bancoldex has also

Development banking has thus complemented private banking in the country by promoting a reduction in information asymmetries and expanding the services portfolio to include small and medium-sized businesses.

developed such special macro-projects as Opportunities Banking, P ro d uc t i o n Tra n s fo r m at i o n Programs and iN-Npulsa, which aim to improve production sector competitiveness by supporting technological innovation and promoting access to credit.

As far as infrastructure projects are concerned, these also receive help, because they are financed by two development banks, namely Findeter and Financiera de Desarrollo Nacional (FDN). Findeter offers public and private entities rediscount loans to finance up to 100 per cent of the total cost of projects relating to infrastructure construction, acquisition of goods and implementation of new technologies in various sectors of the economy, such as health, drinking water, housing, transportation and energy. These loans can be used to finance various investment stages or as working capital or debt substitution, with the financing entity taking on responsibility for payment of the debt with the financial sector.

Development banking has thus complemented private banking by promoting a reduction in information asymmetries and expanding the services portfolio to include small and medium-sized b u s i n e s s e s a n d b y o f fe r i n g non-traditional sources of finance such as leasing, factoring and private capital funds. Colombian development banking has thus contributed not only to country growth but also to companies of all types being able to receive financing, as well as to financial education and production growth strategies in the economy.

AUGUST 2018

PHOTO: Cámara Lúcida-Eric Bauer

PL ANNING TER

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WE SUPPORT SUSTAINABLE PROJECTS

RITORIES

Nariño Square, Pasto (Colombia).

AUGUST 2018

WITHOUT REGIONAL PLANNING THERE CAN BE NO

sustainable development Colombia’s cities and regions face the challenge of achieving a sustainable, balanced and inclusive development that will improve people’s’ quality of life and create opportunities that transcend urban logic. Planning is the starting point.

AS FINDETER IS a Development Bank, it has become the regions’ strategic partner because of its support for sustainable projects aimed at consolidating inclusive, fair and competitive people-friendly territories.

T he Rediscount B ank to Development Bank transformation process is a result of the Integrated Territorial Development strategy,

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which offers financial products that complement rediscount credits; it also uses social innovation models to support public and private authorities in the regions as they plan, prioritize and execute projects by generating local skills, coordinating local actors and strengthening institutions so that they can create opportunities and improve people’s quality of life.

PLANNING TERRITORIES 26 / 27

By Ana María Palau Findeter VicePresident, Planning

This strategy is based around recognizing the individual characteristics of each region, its DNA, and the features of its social fabric, with a view to proposing schemes that will boost its assets, strengthen its finances, generate empowerment in its people and lead to dynamic competitiveness.

PLANNING SUSTAINABLE REGIONS

The rapid growth in Colombian cities, from a current figure of 75 per cent to an envisaged 85 per cent by 2030, has made it necessary to think of comprehensive, sustainable solutions that begin with adequate planning, in order to be able to analyze economic, social, fiscal and environmental

WE SUPPORT SUSTAINABLE PROJECTS

PHOTO: Archivo Semana

Barbacoas Marsh, in the middle of the River Magdalena.

conditions in the regions. This will enable strategic actions to be devised that will create opportunities, jobs and access to health, education, public services and social infrastructure, in line with the respective environmental assets, and also financial sustainability for leveraging investments.

In order to achieve this goal, Findeter has designed various regional planning programs that aim to provide the country’s cities and regions with technical assistance in identifying, together with local actors, the principal strengths and opportunities that will enable a prospective vision of the region to be constructed and a short-, medium- and long-term road map to be

designed, with details of the strategic projects, investments and associated financing that will be required if a positive impact is to be made on inhabitants.

Based on the premise that the regions know best exactly what assets they have, Findeter’s local, supra-municipal and regional development programs are constructed from and for the region, in conjunction with its respective authorities, so that comparative advantages can be designed.

At local level, the Sustainable and Competitive Cities program (car r ied out in alliance with Interamer ican Development Bank, IDB) and the Emblematic Cities program provide

We have built a prospective vision of the region and designed a road map with strategic projects that have a positive impact on people.

participating regions with a strategic plan of action and a prospective vision for the year 2050, together with an investment plan for the next decade. It thus establishes 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 mitigation and adaptation criteria.

23 ci t ies in the countr y 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 for the Cúcuta Metropolitan Area.

The same methodological scheme applies to a further 28 cities that are part of the Emblematic Cities program. These are defined as cities where intervention is either strategic or a priority, because of their development indicators, their geographical location or their regional assets. The goal is to bridge existing gaps and make the region ready for sustainable development. Cities taking part in this program include Buenaventura, Tumaco, Quibdó, Magangué, Aracataca and Barrancabermeja.

Based on the macro-planning exercise resulting from these programs, investments of around 35 trillion pesos have been identified, notable among which are ones that trigger development, tactical urban development processes,

AUGUST 2018

FROM LOCAL TO REGIONAL

The experience that Findeter gained from these programs led it

PHOTO: Archivo Semana

A knowledge transfer process to the regions has been achieved, generating local skills and strengthening our country’s human capital.

interventions in regeneration areas of cities (industrial and renovation areas, areas that have deteriorated or are at risk), improvements to marginal neighborhoods, implementation of transportation-oriented development, comprehensive urban management models and innovative financial leverage schemes to boost emerging economic sectors, such as creative and cultural industries (orange economy) and renewable energies.

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to appreciate that there was a need for development planning to extend beyond the geographical boundaries of cities and provinces and for mechanisms to be established that would boost competitiveness through regional synergies and complementarities. As a result of this, the Caribbean and Santanders Diamond Program came into being as a large-scale regional development model that impacts twelve provinces in these two regions. The aim is to reduce poverty, boost this mega-region’s competitiveness, and promote inclusion in the international value chain through strategic,

integrative projects that focus on potentialities, production vocations and excellence components.

As a result, more than sixty strategic, integrative projects were identified, based on vocations and excellence components (tourism, agriculture and environment, logistics and transportation, and science, technology and innovation) in this mega-region whose focal point and principal trigger for development is the River Magdalena.

FROM VISION TO ACTION

The investment plans identified in 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 have been mobilized for over 100

PHOTO: Cámara Lúcida

WE SUPPORT SUSTAINABLE PROJECTS

Magangué (Bolívar) stands on the banks of the River Magdalena.

projects that have a direct impact on regions that are part of the Sustainable and Competitive Cities, Emblematic Cities, Caribbean and Santanders Diamond, and Lands of Opportunities programs.

LANDS OF OPPORTUNITIES: INTEGRATED REGIONAL DEVELOPMENT

As a Development Bank, what we do is facilitate a process for achieving more and better investments in the regions that have a real impact on people.

Just as urban logic is a fundamental element of planning processes, so too are dynamics in rural matters. As it has evolved, Findeter has thus gradually added elements that enable it to understand and project the region as a whole. To meet this challenge, it has developed the Lands of Opportunities program, the aim of which is to generate interurban and countryside-city complementarity processes and

to define economic development strategies based on an understanding of local opportunities in the global economy by coordinating the different vocations in the region and searching for advantages associated with economies of scale.

The program aims to provide technical assistance in identifying possibilities for improving planning processes and defining and executing strategic projects by identifying the common challenges and complementarity opportunities offered by large, built-up urban areas and, especially, by looking in depth at job creation and making the economy dynamic through unified or complementary local development strategies for the region.

By way of final reflection, it is worth stressing that the political will

of governments and the commitment shown by the entities involved have been a key factor in the success achieved in moving from planning to 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 prioritization decisions will lead to sustainable development and will respect natural resources, the environment and, most of all, future generations.

Finally, these methodologies have given rise to a knowledge transfer process to the regions, thus generating local skills and strengthening the human capital of those regions. This has been the result of placing citizens at the heart of the models.

Planning is essential, because it becomes a focal point for structuring development. We are a starting point, an engine that starts up and triggers action which enables these methodologies to make Colombian cities and regions capable of improving their income and their fiscal capabilities as they draw up more projects and successfully carry them out, thereby improving everyone’s wellbeing.

AUGUST 2018

Cities AT THE FOREFRONT The mayors of Ibagué, Neiva and Monteria recall their positive experiences of working with Findeter on building a planning model for these urban centers.

Ibagué

GUILLERMO ALFONSO JARAMILLO:

We joined the Sustainable and Compe titive C ities pro g ram through Findeter in 2016, with a view to diagnosing matters relating to adaptation to climate change, threats and vulnerability, urban growth, the socioeconomic, fiscal and governance situation, and competitiveness. Today we have five base studies which gave rise to a Sustainable Cities plan of action for Ibagué and a long-term development vision covering a period of 20 years. This initiative consists of four strategic lines that are developed through more than twenty transverse and inter-sector programs, and it sets out to improve competitiveness and sustainability in the region.

P. U.: WHAT RESULTS HAVE

PHOTOS: Ibagué City Hall

BEEN OBTAINED FROM THE PLANNING EXERCISE (IN LINE WITH THE ENVIRONMENTAL, URBAN, SOCIOECONOMIC AND GOVERNANCE DIMENSIONS OF THE PLAN OF ACTION) THAT ARE RELEVANT TO YOUR CITY? G. A. J.: Firstly, we have progressed

URBAN CENTERS are essential

to the Financiera de Desarrollo Territorial (Findeter) mission.

They are the focal point of some of its principal programs, especially the Sustainable and Competitive Cities program, which the entity carries out with Interamerican Development Bank (IDB) support.

Pensamiento Urbano spoke with three mayors about their experiences with Findeter when planning their city, the results of these projects and the impact they have had on improving their citizens’ quality of life, among other matters.

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GUILLERMO ALFONSO JARAMILLO, MAYOR OF IBAGUÉ PENSAMIENTO URBANO: WHAT HAS YOUR EXPERIENCE WITH FINDETER BEEN LIKE WHEN PLANNING YOUR CITY?

PLANNING TERRITORIES 30 / 31

in terms of water catchment for the city, preserving the environment, and food security. The aim of the projects that are currently being executed is to guarantee a permanent and adequate water supply for the next 70 years, based on urban and population growth dynamics for the city and economic dynamics in the region.

Secondly, and with Findeter support, we have made progress with the studies that are required in order to apply for a CONPES to i m p l e m e n t t h e S t ra te g i c Public Transportation System for the city. Here we have done

WE SUPPORT SUSTAINABLE PROJECTS

the following: (1) drawn up the Mobility and Public Space Master Plan; (2) carried out the technical, legal and financial structuring of the system; (3) completed the network land registration; and (4) conducted detailed studies of the works that will be required for the system, such as on 13th Avenue and 103rd Street.

Meanwhile, in the context of the Sustainable and Competitive Cities program, we have conducted a local economic development and competitiveness diagnosis.

P. U.: WHAT PROJECTS AND/ FROM THE PLANS FOR YOUR CITY ARE ENVISAGED IN THE

PHOTO: FINDETER

OR ACTIONS RESULTING

Neiva

MEDIUM AND LONG TERM?

sustainability studies are very useful because there are several very interesting things in them. The urban footprint study, for example, refers to the city being able to establish what real direction it will move in, in the long term. The competitiveness study, meanwhile, has the same characteristic, since it takes on board the big competitiveness challenges facing the city and it sets them out systematically so that an economic and institutional vocation can be achieved. And the risk study identifies what the long- and medium-term problems are.

P. U.: WHAT IS THE BIGGEST IMPACT THAT YOUR ADMINISTRATION HAS HAD ON CITIZEN WELLBEING? G. A. J.: Based on the development

plan vision, which aims to make Ibague a green, healthy, inclusive, productive and peaceful city, we have made progress on promoting a sustainability culture. We have

prioritized people, in their interaction with the environment, as the focal point of city planning and based on the benefits of the region and its natural and cultural riches, through organized urban growth that guarantees more effective public spaces where people can enjoy themselves, without any socioeconomic distinction.

But the most important aspect of my administration is that it has broken a paradigm in the city. We inhabitants of Ibague had grown accustomed to having small projects, but this administration has been showing that it is possible to build a city in the long term with big ones. Regaining confidence in the administration and in the city and its possibilities is probably one of the biggest benefits we are going to leave the city with. We have to recognize that Findeter has accompanied us in that process.

PHOTO: Archivo Semana

G. A. J.: The

RODRIGO LARA, MAYOR OF NEIVA PENSAMIENTO URBANO: WHAT HAS YOUR EXPERIENCE WITH FINDETER BEEN LIKE WHEN PLANNING YOUR CITY? RODRIGO LARA: Very positive, in that the city now has sufficient, precise and robust information to support decision-making. The projections and goals for the

AUGUST 2018

P. U.: WHAT RESULTS HAVE BEEN OBTAINED FROM THE PLANNING EXERCISE (IN LINE WITH THE ENVIRONMENTAL, URBAN, SOCIOECONOMIC AND GOVERNANCE DIMENSIONS OF THE PLAN OF ACTION) THAT ARE RELEVANT TO YOUR CITY? R. L.: The Las Ceibas river has been channeled in recent years, and this has mitigated the effects of the rainy season. However, it was not certain that the works would be sufficient to run off an eventual downpour that lasted longer than normal. Fortunately, with support from Findeter, we managed to hydraulically model the Las Ceibas basin and show that these works would function.

This also allowed us to determine which areas should be channeled and which ones should be left as they are, since the latter allow the river to function properly. Such matters are vital to planning, since these areas are part of the environmental zones that the city should protect.

P. U.: WHAT PROJECTS AND/ OR ACTIONS RESULTING FROM THE PLANS FOR YOUR

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how the administration operates.

Processes have been carried out strictly in accordance with the law.

Secondly, making Neiva a sustainable city is a path that forces it to commit itself to sustainability now and in the future. The region needs to be more efficient in all its processes and procedures.

Being a sustainable region extends, of course, to building public space and projects which, irrespective of their scale, adhere to the city model, control atmospheric emissions, preserve the environment and, above all, ensure citizen participation.

CITY ARE ENVISAGED IN THE MEDIUM AND LONG TERM? R. L.: In the short term, the strategic plan for achieving integration through a municipal associative scheme is the course we have taken, and it will enable Neiva to develop synergies with the eight municipalities in northern Huila.

This will be fundamental to competing and to solving such problems as mobility, housing, and environmental matters. The associative figure is as yet unresolved, although the intention is clear, the view being to do everything we can to bring it to fruition.

In the medium term, the information technology and communications cluster will boost every activity that Neiva engages in, from the services it offers to production, education, health and leisure. The city needs to migrate its processes and procedures to cyberspace, which will improve democracy even more, in terms of access to information.

In the long term, reinforcement of the services sector and urban regeneration are what will enable us to consolidate a scenario that could boost Neiva’s competitive advantages, in that they will consolidate the right to public space, to a healthy environment and, in general, to all the amenities that regions should offer their citizens.

MonterĂ­a.

P. U.: WHAT IS THE BIGGEST IMPACT THAT YOUR ADMINISTRATION HAS HAD ON CITIZEN WELLBEING?

Firstly, people have benefited from a transparent administration. Faith has been restored in public office, since big savings have been made in

R. L.:

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PHOTOS: Archivo Semana

region are based on input taken from primary sources and supported by technology, enabling us to know the state of the region in terms of risk, carbon footprint and sustainability. Wide-ranging sectors of society participated, which has given the process legitimacy and enabled a planning horizon to be constructed. This is why it is a source of pride that Neiva today has supporting information of many different kinds for planning its territory.

WE SUPPORT SUSTAINABLE PROJECTS

We have viewed sustainability not just from the environmental angle but also from the economic, social mobility and urban planning viewpoint. This is why we included four strategic focal points in the 2016-2019 Forward Montería Development Plan. The first is Urban Green, which has involved building 115 parks in the last ten years and a linear park four kilometers long called Ronda del Sinú on the banks of the river. Our goal is to plant 100,000 trees by 2019. The second focal point is Sustainable Mobility, involving the construction of a 35-kilometer cycleway network. During this period, we have paved over 117 kilometers of city streets and begun to introduce our Strategic Public Transportation System.

The third focal point, Healthy Environment, means our using clean energy in schools, in public lighting and on traffic lights, and we are working on a recycling culture. We were selected by the Swiss Embassy to carry out a renewable energies pilot project, the first stage of which will be introduced in official education establishments.

The four th focal point is the A g rópolis del Sinú strate g y, which we are carrying out with suppor t from Findeter. T his aims for synergy between city and countryside by stimulating economic development. We are determined to stand up for the countryside, because we are convinced that it is where the country’s future lies.

M. D. P.:

M A R CO S D A N I E L P I N E D A , MAYOR OF MONTERÍA PENSAMIENTO URBANO: WHAT HAS YOUR EXPERIENCE WITH FINDETER BEEN LIKE WHEN PLANNING YOUR CITY? MARCOS DANIEL PINEDA: Montería

has undergone an unprecedented urban and social transformation in the last ten years. We have been able to carry out ambitious infrastructure projects that would previously have been thought impossible and have seen important results in our efforts to improve our social indicators. Findeter has been a fundamental strategic partner throughout this process because it has given us close, constant institutional assistance, thanks to which we have been able to consider sustainability as a transverse policy in our government.

P. U.: WHAT RESULTS HAVE BEEN OBTAINED FROM THE PLANNING EXERCISE (IN LINE WITH THE ENVIRONMENTAL, URBAN, SOCIOECONOMIC AND

Montería, Ibagué and Neiva are part of Findeter’s Sustainable and Competitive Cities program.

GOVERNANCE DIMENSIONS OF THE PLAN OF ACTION) THAT ARE

P. U.: WHAT PROJECTS AND/

RELEVANT TO YOUR CITY?

OR ACTIONS RESULTING

FROM THE PLANS FOR YOUR CITY ARE ENVISAGED IN THE MEDIUM AND LONG TERM? M. D. P.: Extending the Ronda del Sinú. Last year we handed over the Western Ronda del Sinú, and a bidding process has been started for Southern one, which will be three kilometers longer. We are determined to give the city a third bridge over the River Sinú, and that is why we continue to insist that the national government carry out this work which, in addition to being an urgent need for Montería, will probably become another icon of the city.

Additionally, introducing the Línea Azul (Blue Line) river transportation system on the Sinú is a very important project that we are carr ying out with Findeter, and it will be a pilot model for Latin America. The system will consist of small vessels powered by solar energy that will connect the city via the river from south to north and vice versa. Our vision is to incorporate it eventually into the Strategic Public Transportation System.

P. U.: WHAT IS THE BIGGEST IMPACT THAT YOUR ADMINISTRATION HAS HAD ON CITIZEN WELLBEING? M. D. P.: Citizen participation is the bible of a good government, and it is on that premise that we base all government actions, at all times with the view that the community is our principal ally when it comes to making decisions, since those decisions mainly aim to transform the lives of the citizens of Montería. This has been the biggest impact that our administration has had in the last ten years.

AUGUST 2018

PHOTO: i Stock

COLOMBIA’S FUTURE DEPENDS 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

International adviser to national and multilateral governments.

Author of The Art of Shaping the Metropolis.

Former General Director of Metropolitan Planning, Madrid Community, and Salamanca District Mayor.

IF ITS metropolises do not func-

tion, nor does Colombia. The combined GDP of the four largest conurbations in the country is around 75 per cent of national GDP, whereas they are home to only 40 per cent of the total population.

This means that they are tremendously effective and productive.

Their per capita GDP is considerably higher than elsewhere in the country (Bogotá 18,000 dollars vs.

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PLANNING TERRITORIES 34 / 35

Colombia 6,000 dollars). But this is a worldwide phenomenon, not something unique to this South American country. Nowadays, nations on the five continents compete through their biggest conurbations. Globalization relates not to countries but to metropolises, and the latter are merely the production hinterland of the former.

Metropolises are incredibly powerful and productive. Some of them could be included in the global list of countries by GDP volume, Tokyo in 14th place and New York in 15th, to mention just two. 46 of the leading 100 are metropolises, an astonishing proportion. In the case of Colombia, it would be in 48th place with a GDP similar to that of Hong Kong, but it would be well below Los Angeles, which has twice its GDP. Bogotá does not feature in the top

100, and there is no mention of Medellín, Cali or Barranquilla.

W H AT C A N B E D O N E T O M A K E COLOMBIAN METROPOLISES FUNCTION?

There are many things that can be done. Public administration has to deal with matters relating to housing, the environment, social issues, education, human resources, business capability, innovation, capitalization, financing , job training , public institutionalization and private coordination, among others, in an integrated manner.

It is essential that no issues are overlooked or dealt with in a non-integrated manner. They are all part of the unitary system, the metropolitan genome. They all interact, and any one action automatically has repercussions

WE SUPPORT SUSTAINABLE PROJECTS

on the rest. Strateg ic Plans, Structural Plans and UN-Habitat Metropolitan Workshops are the instruments that integrate sector policies and produce synergies and multipliers, as well as prevent redundancies and conflicts.

It is from these processes that essential projects are generated and prioritized, and investments with the highest social and economic, but above all financial, returns are selected. If these processes are absent, results are chaotic. The most underdeveloped economies have not yet managed to understand the importance of this. They tend to prioritize shortterm decisions linked to election periods and political benefits for the officials that make them.

COLLECTIVE INTELLIGENCE AND

need these coordination and decision-making entities. Singapore can be considered an example of effectiveness, because it has a unified government system. It is essentially a metropolis-state.

Metropolises need something more than a meeting of mayors with a willingness to talk. They need institutions which make wide-ranging decisions that will benefit the whole, and these institutions can only be formed by superior state entities. Colombia’s 1991 Constitution established a disfunction between Bogotá and Cundinamarca, while the opposite occurred in Germany, where city states were brought into being. Colombia, therefore, now has to accept the consequences of not having a capital that is able to compete internationally as it should.

GOVERNANCE HOW CAN THIS INTEGRATION BE ACHIEVED?

METROPOLISES ARE THE

With collective intelligence.

Institutions are one of the most important aspects of this. People show their intelligence if they are capable of creating the most suitable institutions for governing themselves. Intelligence is not the only attribute, but it is certainly one of the most important.

In 2015, OECD published a study which showed that metropolises with twice as many administrative areas (number of municipalities) are six per cent less effective. In metabolic processes in biology and in urban planning (Geoffrey West), on the other hand, when size doubles, effectiveness increases 15 per cent.

The figures coincide. The more unified and organized governance systems are, the more effective the figures will become. Metropolises

RESPONSIBILITY OF CENTRAL GOVERNMENT

If its metropolises do not function, nor does Colombia. If the countr y fails to function, the blame lies with the state and not with the local administrations of Chía, Rionegro, Palmira and/or Sabanalarga. It is the state that is required to make the necessary resources and budgets available to institutions so that the country can function. Metropolises are tremendously profitable for states, from the financial viewpoint, if they know how to finance the capital gains on public investments intelligently and recover them.

Findeter is an instrument of this state, and its responsibility lies in supporting the financing of public works. It is an instrument for boosting effective metropolitan

Metropolises need something more than a meeting of mayors with a willingness to talk. They need institutions which make wide-ranging decisions that will benefit the whole, and these institutions can only be formed by superior state entities.

structures, although the many and varied demands of the municipalities that make up the metropolis are not the soundest basis for maximizing that effectiveness.

Municipalities have no vision of the metropolis as a whole, because they meet the local demands of their citizens and prioritize collective consumption over investments in production.

The 200 urban planners under me in Madrid had a very clear order: if a mayor appeared with a badly-presented proposal, it would not be enough to say ‘no’ to him. That would be the easy part, because it would not compromise the official’s responsibilities, but it would not be the answer. The answer had to be, “You can’t do it like that, but this other way is possible”.

Findeter knows if an investment is profitable or financeable, and it does this very well. But its responsibilities could also include developing the necessary skill in the regions so it has the alternative of saying to a mayor, “If we propose this operation in this other way, then it can be financed”. A proactive attitude requires a regional vision of the metropolis that goes beyond the sum of the legitimate but short-term and compartmentalized visions of the municipalities. It is the state, and hence also Findeter, that should provide this integrated vision.

This metropolitan vision is extremely profitable for public investments and for Findeter. It is the only way to join the big leagues in the globalized world of metropolises. And Colombian cities with this profile therefore need to take that qualitative leap forward, because with that decision Colombia 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 and Jean Francisco Duque CIUDAT Director and Town Planner, respectively.

SIGNIFICANT PROGRESS has

been made in drawing up projects in the field of urban development in Colombia as a result of such instruments as Regional Land Plans and Master Development Plans, which aim to improve competitiveness. When executing these projects, however, municipal administrations come up against a whole series of problems which prevent them from being implemented successfully. The absence of funds to finance them, obsolete land use regulations, a lack of ability in the institutions concerned and poor continuity in government cycles are just some of the many difficulties which, in some cases, are overcome successfully

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but most of the time end up extending the time needed to bring projects to fruition.

These problems illustrate a lack of vision in urban development projects. Such projects should be viewed not as isolated initiatives but as contributions to a region’s growth and potential. They should thus transcend government periods (from drawing-up to implementation and useful life), in order to guarantee implementation and social, environmental and economic component sustainability.

A question arises in this context: what should be done to ensure that an urban development project is carried out successfully?

The answer can be found from a global overview of cases where urban development projects have been implemented successfully.

They all have one thing in common: they have an administration entity. The search reveals that in

countries like Spain, France and Japan the projects were carried out by institutions that were established specifically to draw up and execute this type of project.

If experiences in Spain and Japan are compared, they can be seen to have evolved in a similar manner. In the 1950s both countries had housing development companies, then in the seventies these were transformed into urban development enterprises and in the eighties and nineties they became land administration and urban development entities, until today they are the Regional Land and Urban Planning Administration Company (Arpegio), in Spain, and the Urban Rebirth Agency, in Japan.

Because Findeter is a development bank, it has structured a product aimed at making it a facilitator and/or partner which prefers projects that are sustainable

in all aspects and which generates skills in municipalities so that in the future they can have an administration entity of their own for structuring projects. This implies towns and Findeter working together to draw up Comprehensive Urban Projects that recognize the individual realities of the regions and propose solutions that are in line with regulatory, financing and execution conditions, thus enabling the initiative to be implemented successfully. In other words, a Comprehensive Urban Administration (GUI, in Spanish) for the project is required.

The initiative proposed by Findeter in the context of its plan-finance-execute operating model focuses on providing solutions relating to local knowhow weaknesses, the inability to direct and administer comprehensive urban renovation and development projects, strengthening

Identifying opportunities to modify, expand or complement projects

Evaluation prior to incorporating value-capturing instruments

Road maps for drawing up and administering projects.

Financial structuring of projects.

Technical instruments for drawing up projects

Adoption of value-capturing instruments..

Prospective land price and real estate market studies.

Pre-project evaluations, during intermediate drawing-up phase.

Drawing-up of master plans for mobility, public space, and/ or equipment.

Administration or support for administration of projects, and support for inter-institutional project coordination.

The initiative proposed

by Findeter focuses on providing

solutions

relating to local knowhow weaknesses.

Finally, the GUI (viewed as a coordinated process based on knowledge of the region, joint work by the parties involved in the planning process, and a model covering drawing up, financing and execution) is the medium through which efforts should be channeled in order to get Comprehensive Urban Projects implemented.

This model thus sets out to bridge gaps in the project administration model and hence enable fair, inclusive, high-quality cities to be built, the fiscal and institutional ability of municipalities to be strengthened so that they can better execute sustainable projects, and the instruments that guide local development to be understood, used, and integrated into urban development objectives.

AUGUST 2018

PRE-INVESTMENT

institutions, and speeding up urban administration processes and the integration of short-term actions.

The GUI proposed by Findeter is thus an innovative strategy aimed at urban parts of towns, metropolitan areas and regions that promote planned, sustainable development, and is a strategy that pursues the following strategic objectives.

1. To develop comprehensive urban projects with a view to improving citizen quality of life and to foster orderly planning.

2. To support a strengthening of institutional and fiscal abilities in regional entities, in order to generate resources (value-capturing instruments) for financing Comprehensive Urban Projects.

3. To foster a strengthening of institutional, regulatory, technical and information management abilities, among others, in order to enable urban projects and interventions to be administered and executed effectively.

4. To enable project proposals to be understood not just as isolated initiatives but in a regional context.

5. To prioritize urban interventions.

6. To bring in and coordinate the public and private parties that will be involved in the region.

7. To provide a long-term vision of urban development, thus breaking the established government-cycle paradigm.

8. To reduce greenhouse gas emissions by urban sector activities.

9. To promote a rational use of the private car, to encourage sustainable means of transport, and to increase the amount of quality public space.

DEVELOPMENT

Cycleway in Manizales

PHOTO: FINDETER

WE SUPPORT SUSTAINABLE PROJECTS

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 Castro and Juana Leal Planning Vice-Presidency

T HE TR ADI T IONAL ways in

which cities were conceived and planned in the 20th century, and have continued to be in the 21st century to date, have resulted in significant progress being made in regional development. However, conflicts have also arisen in connection with a lack of identity, unnatural changes on a human scale, and a lack of adequate public spaces. All this not only leads

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to a physical space problem, it also accentuates social fractures and tensions. Only rarely do citizens have an opportunity to take part in building their own surroundings or to have any influence on decisions that are made.

In response to this, a new logic has arisen in the way cities are viewed, one where the individual can play a leading role. In order to guarantee greater inclusion, exercises like Live Plans (LP) and Tactical Town Planning (TTP) have become mechanisms that complement traditional urban management and planning

PLANNING TERRITORIES 38 / 39

instruments. In these new mechanisms, a neighborhood scale predominates, making it possible to forge close links with the communities involved.

These strategies also offer specific ways to understand the results that can be obtained from citizen participation. With Live Plans, this makes it possible to identify the individual needs of a given portion of the region, based on the everyday experiences and feelings of its inhabitants. TTPs, meanwhile, enable collective design and construction processes to be generated for interventions.

Architect Simón Hosie implemented the Live Plans methodology, which has been developed from his experience with communities.

PHOTO: Getty Images-Wolfgang Kaehler

WE SUPPORT SUSTAINABLE PROJECTS

In 2015, Findeter made one of its most ambitious commitments in terms of involvement in a regional planning process. The initiative received financial support from the French Development Agency and a boost from the ‘Tras la Perla de la America’ Foundation.

Architect Simón Hosie implemented the Live Plans methodology (developed from his experience with communities in different parts of Colombia) in Santa Marta’s Pescaíto neighborhood. The possibility arose to arrive at an urban and architectural proposal there, the design guidelines for which were obtained through a process of immersion in, and working with, the community. Recourse was had to elements of the local identity in order to achieve appropriation not only of a constructed element

Santa Marta (Colombia) is one city that has a regional planning process.

but also of the reasoning behind it. The successful LP experience in Pescaíto led to an understanding that participative processes involve a heterogeneous group of people representing various voices in the community. If administrative entities take this universe of views into account, they can get a clearer view and thus achieve projects that can adapt to change and have a more robust local partner base. One sign of the progress made in Pescaíto is that Findeter is on the way to bringing to fruition the House of Dance, the first emblematic building resulting from the strategy, which is financed with support from the Ministry of Culture.

Tactical Town Planning is an innovative mechanism which reduces the margin of uncertainty when it comes to administering projects. During the execution phase, it enables tangible results to be seen in a short period of time, thereby increasing the credibility of the entity executing the project and trust in it. As with Live Plans, TTPs promote active community participation in all stages of the project, thereby making it easier for people to accept it and for it to be sustainable in the long term.

The relevance of TTP is linked to it being related to low-cost, shortterm, small-scale projects that can be replicated. Although these exercises are concentrated in specific parts of a city, the aim is to promote actions of this type and thus generate transformation and belonging throughout the region. Local governments play a fundamental role here when it comes to guaranteeing that these exercises transcend the specific and are incorporated into policies governing the city’s growth and development.

Cartagena City Hall recently prioritized the ‘Various Hands’ program, whereby the inhabitants of Nelson Mandela, Boston, Fredonia and El Pozón neighborhoods were able to enjoy various parks and bridges and their neighborhoods were filled with color as part of the Urban Art Green Corridor project, under which art and culture have given the whole area a new meaning and value.

Despite the progress, the main challenges these strategies face lies in convincing local governments and other relevant parties of their benefits and therefore getting them to adopt strategies of their own. There is thus a need for incentives to be offered. It should also be possible to improve municipal administration and to get people interested in matters relating to such issues as waste treatment, the use of sustainable transportation, safeguarding heritage assets and taking advantage of public space.

In view of the fact that the country’s 1,102 municipalities are not yet ready for the TTP concept, the question of where we should direct our efforts arises. The answer is toward smaller-scale municipalities because they could benefit more, and in many cases their needs far exceed their financial and technical capabilities for undertaking major infrastructure interventions. It is in these areas that TTP has to be a trigger.

Findeter is a strategic partner for regions that are interested in taking these actions because of its technical assistance, co-financing and knowledge transfer model, which enables it to help communities to be capable of administering their own transformation.

AUGUST 2018

PHOTO: Findeter-César Nigrinis

F I N A N C I N G S U S TA I N

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WE SUPPORT SUSTAINABLE PROJECTS

ABLE PROJECTS Julio Garavito School of Engineering, Bogotรก (Colombia).

AUGUST 2018

PHOTO: iStock

Financing:

THE KEY TO REGIONAL DEVELOPMENT The financial products offered by Findeter have won the entity trust and a reputation on the world’s markets, enabling those products to generate progress in the regions and to improve people’s quality of life.

By Richard O. Martínez Hurtado

Financial Vice-President, Findeter

IN COLOMBIA , development banking in general, and Financiera de Desarrollo Territorial (Findeter) in particular, have been responsible for channeling as much funding as possible toward executing

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projects which encourage those sectors of the economy that help improve the living conditions of Colombian people and make them more dynamic.

With this objective in mind, development banks have played a variety of roles in the country’s economic environment over time, ranging from providing liquidity for the financial system to

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Findeter aims to ensure that its strategy enables it to perform its activities in accordance with the

2030

Sustainable Development Goals and hence continue to be the leading development bank in Colombia.

promoting best practices on matters relating to the environment, climate change, equal opportunities, and concern for the most vulnerable members of society.

Findeter has specialized in the long-term financing of infrastructure projects in the regions and in fundamental sectors like drinking water and basic sanitation, as well as in sectors with a high social impact, such as transportation, health, education, energy development, environment, and housing.

It has been able to do this because of the strategic direction the entity has taken in order to ensure that it operates to high administrative standards. These

WE SUPPORT SUSTAINABLE PROJECTS

standards have been recognized by international rating agencies Standard & Poor ’s and Fitch Ratings, which have currently granted the entity BBB- and BBB ratings, respectively: these are the same as the international country ratings.

Because of this significant achievement, Findeter has had access to such important sources of funding as the international securities market where, in 2014, it carried out the first bond issue under New York laws (Regulation S, Rule 144A). This successful issue, the first in the recent history of Colombian development banking, was a major landmark for the entity, since it granted it access to investors in various parts of the world, thus adding to its important client base on the local market. This clearly illustrates the trust that the national and international markets have in the financial products the entity offers.

Meanwhile, in view of this, the entity has been able to access funds from multilateral entities and international banks like the French Development Agency and KFW Bank (Germany). It has done this autonomously, without the need for the nation to grant any guarantees, a factor which highlights the trust in its soundness and financial image on the international market, as mentioned above.

During this process, the support that Findeter has received from the nation in making it the bank that supports sustainable development in the regions has been fundamental. With Ministry of Treasury and Public Credit cooperation,

The support that Findeter has received from the nation in making it the bank that supports sustainable development in the regions has been fundamental.

the entity has consolidated its relationship dating back to the 1990s with the Interamerican Development Bank (IDB).

IDB financing and technical suppor t has enabled programs like the Sustainable and Competitive Cities program to carry out planning exercises and hence identify and prioritize projects that need to be implemented in around 22 of the country’s cities and metropolitan areas, and thus guarantee orderly and overall regional development.

This type of interaction with multilateral banking and the government agencies of different countries has enabled Findeter to become a specialist in sustainability and technical assistance, thus making it a reference point for development banking in Latin America.

Another of the entity’s great assets is its reputation on the local market. Having held a AAA local rating by Fitch Rating Colombia for more than 20 years, Findeter has consolidated a position as a major actor on the national public securities market. At March 31, 2018 it had placed Fixed Term Deposit Certificates with a liability balance of 4.5 trillion pesos, in addition to the 203,000 million peso subordinated bond issue it placed on the market in April 2017.

Integrating all these factors has made it possible for Findeter today to have financing lines with terms of up to 15 years on indicators such as IBR, IPC and DTF, notwithstanding the fact that it studies and grants financing with even longer terms in certain cases. It is key, here, to point out that 95 per cent of the entity’s total credit portfolio at March 31

had been disbursed with terms of more than five years.

The entity has thus managed to get the best conditions and sources of financing for supporting its mission to be the best strategic partner in the regions and hence generate wellbeing for people, and this has enabled it to place development project credits worth more than 17.4 trillion pesos since August 2010. It has had a positive impact on every province in the country and on the main sectors of the economy, with the best financial conditions for the beneficiaries of these credits.

Moreover, it is because of these activities that Findeter has become an important regional development coordinator, since it channels subsidies by the various national government ministries, regional entities and organizations and international agencies at the interest rate for promoting and developing economic sectors of interest.

Looking to the future, the entity is facing a number of big challenges, such as bringing project financing into line with project evaluation on environmental and social aspects so as to guarantee sustainability and generate equal opportunities for members of the communities with respect to all credits that are to be disbursed. This is one of the most ambitious objectives in an environment where financing needs in Colombia are still very high.

Findeter thus aims to ensure that its strategy enables it to perform its activities in accordance with the 2030 Sustainable Development Goals and hence continue to be the leading development 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 Findeter Head of Business Intelligence

FINDETER HAS maintained its

status as the partner of Colombia’s regions as it has gone about financing their infrastructure and assisting them since 1989. The entity has evolved over the three decades it has been in existence. Initially it directed its efforts toward provinces and municipalities that needed technical assistance and financial resources for executing projects that aimed to improve installed capacity in such fields as health, education, transportation, water and urban development. Now that it has expanded its financing sphere and its fields of action, it supports public and private social housing, technology and environmental projects.

The entity offers its clients rediscount loans with special lines and rates, meaning that projects enjoy highly favorable conditions. The

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special lines are set up by Findeter with its own funds for the purpose of promoting a specific sector. It has developed 21 special lines in recent years, resulting in disbursements totaling 2.7 trillion pesos. The main sectors have been transportation, energy, education and health, while the beneficiaries have been 29 provinces and 143 municipalities.

Findeter also created such financial instruments as compensated rates, which transfer the benefits of subsidies to the beneficiaries through financial intermediaries. Since 2010, with support from ministries, provinces and municipalities, the entity has created 27 compensated rates for urban infrastructure, health, education, water, transportation, tourism and fiscal consolidation. These subsidized funds have been used to execute water and road plans and to generate development and competitiveness at ports and energy efficiency, and also to mitigate climate change.

FINANCING SUSTAINABLE PROJECTS 44 / 45

Impact on regions A lack of regional planning and of technical skills and financial resources is a problem that affects developing countries not only in Latin America but all over the world. Colombia is no exception, and Findeter has helped to bridge these gaps. In the last eight years the assistance it has provided has been more intensive, because it has funded loans totaling over 18 trillion pesos for projects in 31 of the country’s provinces, including the Capital District, covering 415 municipalities and 11 sectors. The transportation infrastructure, health, energy, urban, education and drinking water sectors received 94 per cent of the total disbursements.

These funds are measured in terms not only of the actual figures but also of the fact that they have brought to fruition 4,095 infrastructure projects around the country, principally through long-term loans, thereby complying with the entity’s mission. These results during the

Since 2010, the entity has created 27 compensated rates for urban infrastructure, health, education, water, transportation, tourism and fiscal consolidation.

PHOTO: Findeter

WE SUPPORT SUSTAINABLE PROJECTS

present decade have made Findeter a development banking market reference point in Colombia and throughout Latin America. The results speak for themselves: in addition to the sum mentioned above for financing infrastructure projects, 208 education entities have benefited, together with 284 health institutions, 27 water and sewage companies, 17 clients with provincial road projects and 13 mass transportation systems, to mention but some.

All this has impacted the regions in matters like cost savings for beneficiaries by virtue of their having access to the entity’s funds, job creation, more beds for health care, and more teaching jobs and classrooms for studying.

Compensated rates Due to its share and volume of funding, the compensated rate for sustainable infrastructure is the most notable of all the financial tools created by Findeter. Since 2010 it has been used to finance

sustainable projects in the regions that result in increased coverage, quality and continuity in the energy, transportation, urban development, construction and housing, health, education, environment and sustainable development, IT, and sport, recreation and culture sectors.

This credit line has financed projects worth 2.64 trillion pesos in 24 provinces and 127 municipalities around the country. 80 per cent of these funds have been assigned to three sectors: 35 per cent to transportation, 33 per cent to education, and 12 per cent to drinking water.

The compensated rate for sustainable infrastructure has had a big impact because the loans have financed socially important projects like universities, roads and clinics, which boosted credit in the regions. The rate has thus had a multiplying effect and meant that funds have been used more efficiently, and it has also pioneered soft rate mechanisms.

In 2015, in the context of the 2014-2018 National Development

Panoramic view of the Provincial Viaduct in Bucaramanga (Santander).

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.

Findeter has thus succeeded in positioning itself not only as the most important financing entity in the country but also as the development bank that takes wellbeing to the regions. Notable features of this process include the success of the various financing mechanisms, such as compensated rates and special lines, which have covered provinces and regions where needs have been high: vulnerable population, poverty, and displaced persons.

The challenge now is to continue, together with ministries and private entities, to encourage the creation of other tools that will make it possible to carry out priority projects in the regions that promote development and sustainability in the country. The entity therefore continues to be committed to National Development Plan and wants to help the national government to generate growth and progress.

The entity recommends that programs be drawn up that will improve the country’s social indicators by working with dedication on issues that are of vital importance to Colombia.

AUGUST 2018

PHOTO: Istock

First-tier banking SUPPORT

Alejandra Cuéllar Vanegas, Davivienda Director of Business Social Responsibility and Public Relations, considers that vulnerable population groups should be the main public target of Development Banks.

She is of the opinion that these banks should design financial education and empowerment programs for women.

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IN JANUARY 2016 the count-

down began to executing of the 2030 Agenda, which the United Nations has approved and adopted as the plan that is to be followed by more than 197 countries.

Compliance with the 17 Sustainable Development Goals (SDG) will be possible because governments, private enterprise and production sectors, including the financial sector, have agreed to participate.

Development banks and first-tier

banks, either individually or in coordination, are involved in actions to improve people’s quality of life.

In a conversation with Pensamiento Urbano, Alejandra Cuéllar Vanegas, Director of Business Social Responsibility and Public Relations at one of Colombi a’s pr incipal bank s , Davivienda, which operates in Central and Nor th Amer ica , commented on this financial entity’s experience with the SDG,

WE SUPPORT SUSTAINABLE PROJECTS

development bank performance, and synergies that have been achieved with Financiera de Desarrollo Territorial (Findeter).

Pensamiento Urbano: What is your entity’s position on the Sustainable Development Goals (SDG) and the new urban agenda?

Alejandra Cuéllar Vanegas: Davivienda is part of the Bolívar Group, and as such we fully understand the contribution that we need to make in the private sector in order to adhere to the Sustainable Development Goals. We are of the opinion that all of us have a duty, as entrepreneurs but also as individuals, to ensure that our actions are directed toward building a better world, and this is why we fully identify with these goals.

We have worked within the bank to establish all the initiatives that nowadays contribute to each of the 17 SDG, so that we can define measurement and follow-up mechanisms for these indicators. The Bolívar Group as a whole has grouped together the SDG on which the activities carried out by each individual company can have the biggest impact, and we at the bank therefore have different contributions.

P.U.: What specific programs is the bank carrying out to improve people’s quality of life?

A.C.V.: As far as reducing poverty and social inclusion are concerned, we believe that the bank plays a crucial role in channeling funds to the least-favored sectors. At Davivienda, this is part of our business strategy, and we have therefore concentrated on

Financiera de Desarrollo Territorial (Findeter) has been a very important partner for the bank in helping us to understand and find out about projects in different parts of the country.

designing products and services that will enable banking to be available to population sectors at the base of the pyramid who are traditionally excluded from the financial system, in the form of innovative products like DaviPlata, which allows transactions to be carried out easily from a cell phone and at no cost to users.

We are also contributing to these goals in our capacity as leaders in the financing of social housing, as we are with our Rural Finance program. On the other hand, a robust financial education program has been developed which provides people in countries where we operate with tools to enable them to manage their money well and build up capital.

These are just a few examples of products and services that are fundamental to the bank’s strategy and clearly make a big contribution to improving the living conditions of individuals and their families.

P.U.: In the experience of the entity you represent, what financial mechanisms and/or factors do you believe can have a big impact on developing regions and people’s wellbeing?

A.C.V.: Channeling resources to people at the base of the pyramid is fundamental, and this is done by supporting social entrepreneurship projects, startups and small- and medium-sized businesses in order to encourage job creation and more opportunities and to reduce poverty indices and inequalities in the country. All this is reflected in greater development and economic growth.

There is also a need to generate solutions based on innovation

and technology that meet stakeholder needs, promote easy access to financial products and services, eliminate barriers, and help reduce inequality.

P.U.: Bearing in mind current first-tier bank dynamics and the experience with regional entities (city halls, provincial governments, etc.), what initiatives do you believe development banks should promote?

A .C .V.: Development banks should focus on promoting access to credit, especially for vulnerable sectors of the population, and on designing financial education and empowerment programs for women. They should also promote projects that boost environmental sustainability and regional development.

In the Colombian context, development banks are key actors in promoting initiatives to support the post-conflict process in the form of victim reparations, providing funds to support rural development, creating growth opportunities for people affected, and designing programs aimed at the community.

P.U.: What has your entity’s experience with Findeter been like, and what benefits have you seen?

A.C.V.: Financiera de Desarrollo Territorial (Findeter) has been a very important partner for the bank in helping us to understand and find out about projects in different parts of the country. It has also helped us to strengthen our relationship with regional actors, so as to support the financing of development plans and private projects in various parts of Colombia.

AUGUST 2018

Votes of CONFIDENCE FROM AROUND THE WORLD

Findeter has become the leading entity in the country in negotiating nonreimbursable funds elsewhere, having obtained around 50 million dollars from international organizations and governments.

By María Paz Uribe Estrada Findeter Head of International Banking

SEARCHING THE WORLD for

funds that will be used to support, develop and implement sustainable programs anywhere in the country is a task that could be described as titanic. This job that Findeter does every day and has become the secret of its success is based on the work its staff have done for years, far beyond Colombia’s borders, where they have built up a reputation with the international community

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that is founded on the credibility of the institution’s mission.

The support it has received from the governments of Japan, the United Kingdom, the United States, Germany and France, among others, as well as from some of the most influential development banks in the world, such as the World Bank, the Interamerican Development Bank (IDB) and the United States Agency for I n te r n at i o n a l D e v e l o p m e n t (USAID), to name but a few, confirms that we have moved in the right direction.

As a result, Findeter has managed, to date, to administer non-reimbursable funds totaling around 50 million dollars that have been used, fundamentally, in the regional transformation process, to build sustainable regions and to improve quality of life for thousands of Colombians around the country.

The story began in 2011 and 2012, when this development bank literally traveled the world with its suitcase, with the idea of learning from the principal international organizations. On the basis of what it learned, close links of trust were forged that enabled funding to be found so it could go on building the country we dreamed of. And

FINANCING SUSTAINABLE PROJECTS 48 / 49

to do this, it used its now-proven formula for success, namely plan, finance and execute.

The good news soon began to come in, and in late November 2013 the first flow of non-reimbursable funds began, from the European Union through the French Development Agency, in the form of five million euros for the Sustainable

PHOTO: iStock

WE SUPPORT SUSTAINABLE PROJECTS

and Competitive Cities and the Emblematic Cities programs.

This initial aid enabled the foundations to be laid for the specialized Findeter International Banking area, which was set up to perform three key functions that were nevertheless ºfar from easy to achieve: to obtain resources to fund the entity, to obtain

It is a source of great pride for Findeter to be part of the Latin American development banking industry.

non-reimbursable cooperation funds, and to establish the entity’s brand and prestige abroad.

In the early days of this longterm commitment we had to knock on many doors, attend countless meetings and presentations with top officials, look for identification points, create trust levels and even chemistry and, finally, show total, absolute transparency.

In 2014, IDB contributed 500,000 dollars to improve mobility in Montería, Popayán and Pasto. In 2016, Global Environment Facility (GEF) gave 1.9 million dollars to improve public lighting systems in Colombia, and the NAMA facility, with support from the British and German governments, handed over 11.7 million euros for transportation-oriented development projects.

Later, in 2017, the British government’s Prosperity Fund provided 13 million euros, and more recently Abu Dhabi Development Fund gave 7.3 million dollars. These are but some of the many instances of successful, non-reimbursable cooperation.

These examples illustrate the extraordinary vote of confidence that Findeter has received from the international community and, especially, they have enabled projects to be carried out in key development areas in the country, such as infrastructure, housing, water, health, education and energy.

These funds from abroad, for which Findeter is responsible before the world, trickle down to city, municipal and provincial levels and become investments that optimize communities’ sustainable future.

OTHER ACHIEVEMENTS

Another matter that cannot be overlooked in terms of of

the position that the institution has won for itself abroad is the appointment of Findeter President Rodolfo Zea Navarro to the Managerial Council of the Latin American Association of Development Financing Institutions (ALIDE). This occurred late last year.

It is a source of great pride for the institution to be part of the L atin American development banking industry, where Finagro, the National Savings F u n d a n d t h e D e ve l o p m e n t Institute (IDEA) also have a presence. Equally, it is a source of pride to be ALIDE’s focal point in Colombia, which indicates relevance and status in the field of development banking, because ALIDE is an umbrella organization for 90 such institutions in more than 30 countries.

Another item of news which illustrates the reputation the entity has earned itself abroad i s my i nvo l ve m e n t a s L at i n American representative on the UNEP FI Banking Committee.

This is the United Nations environmental financing initiative, a special committee for bankers.

This achievement by Findeter is a landmark for the countr y because it is the first time that the position has been held by a Colombian development bank.

The process of getting non-reimbursable funds from around the world in order to boost sustainability in the country’s regions never stops. Findeter is preparing to face the next challenge on the development agenda on vital issues like the post-conflict, and it is ready to negotiate them anywhere on the international stage.

AUGUST 2018

International Cooperation

FINDETER’S PARTNERS AROUND THE WORLD

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INPHOGRAPHY: Alejandra Sarmiento

WE SUPPORT SUSTAINABLE PROJECTS

AUGUST 2018

Sustainable bonds

TO SAVE THE PLANET

PHOTO: iStock

Development banks and governments have been using this capitals market instrument to finance projects of varying sizes and with different timeframes that seek to combat climate change and reduce greenhouse gas emissions. In Colombia, Findeter is on course to do the same.

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By MarĂ­a Fernanda Ghisays Morris

Findeter International Banking

VARIOUS INITIATIVES have

been proposed in the world this decade for mitigating and adapting to climate change, and it is from these that Green Bond issues subsequently emerged. These set out to finance or refinance smallor large-scale projects that combat climate change and reduce greenhouse gas emissions. The initiative was boosted initially by such multilateral institutions as the World Bank, Interamerican Development Bank (IDB), International Finance Corporation (IFC) and European Investment Bank (EIB).

WE SUPPORT SUSTAINABLE PROJECTS

The first issues led to a boom in the drawing-up of principles, standards and certifications aimed at ensuring transparency and integrity in these processes. The instruments themselves were also rethought and related sectors and needs were expanded, resulting in the appearance of Social Bonds.

The purpose of these is to finance or refinance projects that generate positive social results and reduce poverty. As with Green Bonds, they have in-built elements to guarantee worldwide issue standards.

More recently, Sustainable Bonds have been created, which are fixed income instruments that aim to finance or refinance green and social projects in the same issue. These are in line with the four

cornerstones of the Green Bonds and Social Bonds Principles.

1. Use of funds. This cornerstone defines eligible investment categories and criteria, bearing in mind the green and social project requirements and types described in the Green Bonds Principles and Social Bonds Principles. Eligibility criteria and investment categories should be well defined and should also provide a response to the mission and practices of each institution.

2. Evaluation process and selection of pro jects. T his cornerstone sets out the decision-making process for selecting which projects will receive funds deriving from the issue, in line at all times with the aforementioned principles, and for establishing environmental or social sustainability objectives.

3. Administration of funds. The way in which funds obtained are managed, used and preserved by each issuing entity until they are utilized is established. This applies only to eligible projects after they have met the criteria identified in previous phases.

4. Reports. Institutions should state each year how funds have been used on eligible projects and what impact they have had, by investment category. Indicators to be reported are identified before the bond is issued, for the benefit of investors.

These instruments have taken on greater relevance in Latin America because national governments and development banks have

1.

2.

3.

4.

The first issues led to a boom which made it imperative to draw up principles, standards and certifications aimed at ensuring transparency and integrity.

been involved ever more frequently, and in some cases have had issues of this type. In Colombia, Findeter has expressed interest since 2015 in joining these new markets, which fit in with its mission to form sustainable regions.

One year later, it therefore signed a non-reimbursable, regional technical cooperation agreement with IDB, using Swiss Economic Cooperation (SECO) funds, the purpose of which is to help the National Development Banks of Colombia, Peru and Ecuador to obtain private funds with adequate terms on national and international capitals markets by issuing Green or Sustainable Bonds. This measure seeks to impact institutions’ ability to diversify their sources of financing, to promote low-carbon activities in the country, and to develop the capitals market with innovative products.

In a period of not less than one year, Findeter has received training in structuring, reviewing and verifying a possible first Sustainable Bond issue, which would be on the local market for around 400 thousand million pesos. It should be remembered that the first issue of this type on the subcontinent was by Mexican company Retoplas in June 2017, and the next one by Mexico’s Banco Nacional de Obras y Servicios Públicos (Banobras) in February this year.

If this issue were to take place, the entity would have an innovative operation that would also be the first of its kind in Colombia. It would thus strengthen its position as a leading bank in promoting sustainable projects in the country.

AUGUST 2018

IR SEAL:

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.

GIVEN THE NEED to make the

country’s capitals market more attractive in the eyes of international investors, in 2012 the Colombian Stock Exchange established an Investor Relations (IR) program, aimed at its registered issuers. The program sets out to promote the voluntary adoption of best practices on matters relating to the disclosure of information and relations with investors, with a view to ensuring that the market can rely on sound judgment when making investments because sufficient trust has been created for

The two fundamental objectives of the IR seal are to provide precise, prompt information about the company and to act as a channel for direct interaction between management and investors.

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PHOTO: Archivo Semana-Esteban Vega La-Rotta

good corporate practices

investments to be made in instruments issued by listed companies.

The two fundamental objectives of the IR seal are to provide precise, prompt information about the company and to act as a channel for direct interaction between management and investors. In order to meet these challenges, the Stock Exchange established a series of requirements that issuers wishing to access the program have to meet. The main ones are, firstly, to appoint an investor relations officer who has direct access to top management and who can formally communicate the company’s strategic direction and efficiently channel investors’ opinions and expectations, report financial information on a quarterly basis and have a website where all financial and strategic information is disclosed in Spanish and English,

and, secondly, to make a quarterly presentation of results to investors and analysts in which top management take part.

Only 31 companies that issue securities currently have the Colombian Stock Exchange IR seal, which is renewed on an annual basis if they continue to meet the requirements. Several of the biggest companies in the country are on this list, such as Almacenes Éxito, Avianca, Ecopetrol, EPM, Nutresa, Bancolombia and Grupo Aval.

Findeter is a notable inclusion on the list, because it is the only financial entity in the public sector to hold IR recognition. In 2014, as a consequence of the first international bond issue by the entity and in line with the commitment it adopted in recent years to strengthen its corporate governance, it decided to join the Stock Exchange’s IR program.

WE SUPPORT SUSTAINABLE PROJECTS

In

2016 2017 and

Colombian Stock Exchange

To this end, Findeter began the process of implementing the necessary measures and practices for meeting the requirements stipulated for accessing the program. The first step was to set up the investor relations office, which answers directly to the Financial Vice-Presidency. It then started to build an IR section on its website, in Spanish and English, where all the entity’s most important financial, corporate and strategic information has been published ever since. This includes the Business Structure, Good Governance Code, Code of Ethics, corporate bylaws, Country Code survey, the annual Management and Sustainability Report, information about all bond issues, risk rating information, CVs of members of the entity’s Board of Directors and Directors, quarterly and annual financial statements,

and abundant additional information that enables investors and interest groups to obtain a full and transparent understanding of Financiera de Desarrollo Territorial operations.

Meanwhile, as mentioned above, one of the most important aspects of the IR program is the quarterly event when results are presented, as this is the main point of direct contact between the company and the market. The most common way this is done in Colombia and in countries where the IR figure exists is by streaming or videocalls, where the company president or financial vice-president, together with his team, presents the principal financial and commercial results for the respective quarter. This method provides an open channel where the market can ask questions directly to those responsible for managing

the Colombian Stock Exchange renewed Findeter’s seal and, in the latter year, the entity was recognized as one of the IR issuers where program standards had evolved most.

the entity, which results in investors having a greater feeling of trust and control over funds invested 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 it renewed Findeter’s seal and, in the latter year, the entity was recognized as one of the IR issuers where program standards had evolved most, according to a study conducted by Colegio de Estudios Superiores de Administración (CESA), in conjunction with the Colombian Stock Exchange.

IR practices promote company growth by creating investor trust and improving corporate management behavior due to the periodic reporting of financial and commercial information, which leads to constant exposure to evaluation by interest groups. Meanwhile, the objective of corporate governance is to ensure that the company is well managed and, hence, has the same fundamental goal as IR practices, namely to promote growth and improve management.

In view of the above, the IR program can be said to have represented for Findeter an overall strengthening of its corporate governance structure, resulting in sustained growth in recent years and making it the leading development bank in Colombia.

AUGUST 2018

FINDETER IS COMMITTED TO THE

SDG in Colombia From the time they were drawn up, the Sustainable Development Goals (SDG) have sought to reduce worldwide poverty indices, achieve sustainable development, and improve living conditions for the people of the world.

since 2010 for pre-investment processes in more than a hundred projects, with support from international entities, thus contributing to their sustainable development.

By Ana María Palau, Úrsula Sola de Hinestrosa and Beatriz Elena Puello

FINANCE

Findeter Planning Vice-Presidency

IN 2015, United Nations

memb er states adopte d the 2030 Agenda for Sustainable Development, which contains 17 Sustainable Development Goals (SDG) and 169 Targets. This declaration aims to end poverty, fight inequality and injustice, and face up to climate change. In Colombia, CONPES Document 3918 of 2018 established 16 commitments for consolidating social and economic development in harmony with the environment, based on a regional strategy. Financing will play a fundamental role if the SDG are to be achieved effectively, and the Findeter integrated regional development management model (plan, finance and execute) is a vehicle for doing this.

PLAN

Findeter’s planning programs, in line with Goal 11, Sustainable Cities and Communities, adopt

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a long-term view of sustainable development and a road map with an investment plan for the coming decades. At local level, the Sustainable and Competitive Cities and the Emblematic Cities programs, which currently have over 50 member cities around the country, and at supra-municipal and regional level, the L ands of Oppor tunities and the Caribbean and Santanders Diamond programs, which impact more than 15 provinces and 180 municipalities, aim to reduce poverty, bridge inequality gaps and improve competitiveness, productivity and social and environmental development in our regions, all of which is closely in line with the SDG. In the Sustainable Cities and Emblematic C ities context, Findeter has identified investments totaling 35 trillion pesos, with 1.9 trillion pesos in disbursements being made to those cities and 3.2 trillion pesos in technical assistance.

Additionally, in regions involved in the regional planning programs, Findeter has mobilized over 20 thousand million pesos

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The Agenda divides its 17 Goals into

169

Targets, which are measured by global, national and local performance indicators.

The rediscount credit product has enabled Findeter to mobilize funds to foster infrastructure projects in the country since the early days.

Between August 2010 and June 2018 it disbursed 18.8 trillion pesos in loans for more than four thousand projects. 72 per cent of disbursements placed in 2017 went to the private sector and had a direct impact on Colombia’s sustainable development.

Findeter has included the fostering of social housing, improvements to urban passenger transportation systems, municipal waste management and the development of sustainable, resilient urban infrastructure as essential elements for ensuring that all people have access to basic services and conditions for competitiveness and prosperity. Since Findeter is a development bank for sustainable infrastructure, it has therefore determined the SDG on which it will focus its credit funds mobilization strategy to 2030, namely health and wellbeing, quality education, drinking water and basic sanitation, affordable and clean energy, infrastructure and innovation, sustainable cities, and climate action.

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By way of contribution to the countr y ’s commitments, Findeter accordingly designed a Measurement , Repor t and Verification (MRV ) model for SDG finances relating to the rediscount credit product. The MRV model has become an information tool for analysis and decision-making purposes for the entity, one that aims to identify gaps so that regions and sectors that are strategic to the country’s development can be served.

energy coverage and renewable energy generation installed capacity, improving national and regional transmission system interconnections, and leveraging the execution of projects in non-interconnected par ts of Colombia. Between January 2016 and December 2017, Findeter traced the mobilization of 0.5 trillion pesos in credit resources for SDG 7 (Affordable and Clean Energ y), mainly in hydroelectric generation and in extending or improving transmission systems.

In the case of SDG 9 (Industry, Innovation and Infrastructure), the funds mobilized for social housing, municipal waste management, urban transportation, air transportation and recreation infrastructure were grouped together, since these are critical elements for sustainable communities and ones where a clear need could be seen for alternatives that would increase investments in waste management and exploitation.

It gives us great pleasure to see that 27 per cent of the total disbursed for SDG in 2016 and 2017 went to investments in

(Trillion pesos) 2.0 1.5 1.0 0.5

2016 Total SDG

2017 Total disbursements

SOCIAL CONTRIBUTIONS

Quality infrastructure is fundamental to improving mortality indices and to increasing the different levels of education coverage, and these come under SDG 3 (Health and Wellbeing) and SDG 4 (Quality Education), respectively. Findeter mobilized 0.7 trillion pesos to fund assets in the 20162017 period, with 83 per cent of the respective beneficiaries being private companies.

0,1 0,3

SDG 11, Sustainable Cities

0,1 0,7

SDG 7, Clean Energy

0,4

SDG 4, Education 0,5 0,5

SDG 3, Health SDG 6, Clean Water Other

CONTRIBUTIONS TO PROSPERITY

Contributions made in recent years have included increasing

SDG 9, Industry, Innovation and Infrastructure

Credit funds mobilized by SDG, 2016-2017 (In trillion pesos)

provinces with the highest inequality levels in Colombia.

CONTRIBUTIONS TO THE ENVIRONMENT

SDG 13 (Climate Action) brings together investments in various sectors and under various SDG that have seen 0.64 trillion pesos mobilized in the last two years, 93 per cent of which has been for projects that contribute to mitigating greenhouse gas emissions (in other words, reducing or capturing them), principally through projects to generate, improve or provide access to electricity, and mass public transportation systems. Findeter will issue Sustainable Bonds worth up to 400 thousand million pesos, which will combine green projects (to mitigate climate change) and projects that will have positive social impacts.

EXECUTE

Finally, Findeter provides a technical assistance, evaluation and supervision service for high-impact projects and works in the housing, social infrastructure, and water and basic sanitation sectors that are financed from national government funds and impact Colombians’ quality of life.

Between August 2010 and May 31, 2018, 8.6 trillion pesos were administered in the form of technical assistance for 855 projects in 29 provinces, which resulted in over 121,000 homes being provided for the most vulnerable segments of the population, 282 drinking water and sanitation projects and a further 321 social infrastructure projects, many of them in remote parts of the country.

AUGUST 2018

PHOTO: Alejandro Villaquirรกn

E XECUTE WORKS

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WE SUPPORT SUSTAINABLE PROJECTS

FOR PEOPLE

Buenaventura seafront, Valle del Cauca (Colombia).

AUGUST 2018

FROM FINANCING TO

execution Transparency, teamwork and technical ability are the key factors in Findeter’s success in meeting the challenge of consolidating its position as a strategic partner for the regions.

By Alejandro Callejas

Findeter Technical Vice-President

ONE OF Findeter’s most import-

ant characteristics in recent years has been that it has remained firm in its commitment to being the regions’ strategic partner by supporting sustainable projects.

The entity took on a new challenge in 2012, namely, making the knowledge and experience of its staff in executing projects using an innovative, inclusive and collective model for solving problems that arise on a daily basis in the country available to the national government.

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HOUSING: A FIRST STEP

One of President Juan Manuel Santos’ flagship goals during his first period of government was to build a million homes. To achieve this, the Priority Housing and Social Housing programs needed to be augmented substantially.

The biggest obstacle to meeting this challenge lay in the fact that regional institutions were unable to structure and present projects aimed at this sector. To change this situation, Findeter formed an independent technical assistance team which helped interested mayors in these matters, and hence enabled them to meet eligibility criteria.

This decision resulted in many initiatives throughout the

countr y being unblocked, but 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 program to build and hand over 100,000 free homes.

The first task was to check a number of plots of land in order to determine whether they were viable, so that this ambitious project could proceed. Hundreds of plots around the country were checked in record time and the process was deemed an outstanding success. Next, thanks to the entity’s installed capacity, technical evaluations were carried out of proposals submitted for building the homes, and finally the circle was closed when Findeter began to supervise projects carried out by private initiatives on-site.

To date, the entity has participated in 240 Ministry of Housing projects in this sector, which translates into 120,000 houses that have benefited over 500,000 people around the country.

DRINKING WATER: A WINDOW FULL OF POSSIBILITIES

As the country worked harder to reduce the national housing

Park in Villas de San Pablo, Barranquilla.

deficit, so a related need arose: namely, to improve access to drinking water and basic sanitation. At the time, this sector was becoming a critical obstacle to progress on the path to building cities that offered their inhabitants the minimum public services conditions.

The Ministry thus launched a Water for Prosperity program, under which Findeter added two new products to its services portfolio: administration of public funds, and technical assistance in the execution of projects.

Here, unlike the situation with the housing programs, the Ministr y hands funds over to Findeter for it to administer, and as soon as it receives them it passes them to an independent trust entity. As part of this process, corporate governance and rules for executing the projects are established.

The second product is technical assistance. This consists of advising the Ministry on drawing up preliminary studies and terms of reference, evaluating bids, and providing technical supervision of projects. Today, more than 280 drinking water and basic sanitation projects have been

successfully assisted, benefiting millions of Colombians. 1,268 kilometers of pipework have been laid and 58 treatment plants have been built, together with 93 storage tanks capable of holding 92,000 cubic meters of water.

These are but some of the achievements made as part of the revolution in this sector in recent years.

IF A MODEL IS SUCCESSFUL, IT CAN BE REPLICATED

Findeter’s technical ability, plus the fact that it built a model based on teamwork, caught the attention of other entities, and this made it easier to agree on a multi-sector social infrastructure partnership which has had results that are plain for all to see. More than 192 education institutions have been built, including 41 new schools, together with 544 classrooms, 51 development centers for children under the age of 5, fifty parks, 19 libraries and 38 citizen integration centers, among other high social impact projects.

SUCCESS FACTORS

Any analysis of the principal factors that have contributed to the success of this program must start

PHOTO: FINDETER

WE SUPPORT SUSTAINABLE PROJECTS

Today, more than

280

drinking water and basic sanitation projects have been successfully assisted, providing millions of Colombians with the most basic resource for human life: drinking water.

with the transparency of the contracting and execution model.

The model adopted this principle four years ago, thus anticipating 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 seriousness and transparency.

The model allows processes to be public and shared among interested parties, while single bid documents guarantee processes that are tailor-made for contractors. Bids are presented in two separate envelopes for evaluation (technical and economic), a practice that allows for an objective, pressure-free evaluation of bidder qualities.

Similarly, bids are awarded using a random scheme linked to the representative market exchange rate, thus making it impossible for any official to manipulate the award mechanism.

Finally, decisions are made by collegiate bodies consisting of all parties involved in the project.

Trust levels in the characteristics of the contracting process have been high, and an average of 16 companies currently take part in calls for bids. More than 12,000 companies have submitted bids, and the number is still rising.

Finally, the third success factor can be summarized as the fact that the technical abilities of the team are a mixture of experience, a willingness to work for the country, and a commitment to each and every one of their actions. This has been fundamental in enabling Findeter to say today, with great pride, that execution and results are two cornerstones of the institution.

AUGUST 2018

By María Claudia Valencia

INCLUSION FOR BUILDING

social fabric The Social Administration Team was formed in 2016 to foster Findeter effectiveness in administering social guidelines for building social fabric in the regions. Buenaventura, Colombia’s most important port on the Pacific Ocean, is an example of how this strategy has been applied effectively.

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Coordinator, Findeter Social Administration Team

‘POVERTY’ IS, without doubt, a key word nowadays, one that is much used by everyone, either well or badly. Large sums of money are spent on the poor. Thousands of books continue to propose solutions to the problem, while expert advice is readily available.

However, it seems very strange that nobody, not even the supposed ‘beneficiaries’ of all these activities, seems to have a clear and common

WE SUPPORT SUSTAINABLE PROJECTS

PHOTO: Archivo Semana

For Findeter, communities are the focal point of the works its executes.

vision of what poverty is. One reason for this is that all definitions revolve around the concept of ‘lack’ or ‘deficiency’. This notion reflects only the basic relativity of the concept. What is necessary, and for whom? And who is trained to define it? (Rahnema, 1991).

Countless governmental, non-governmental, institutional, academic, civil and other initiatives have promoted and facilitated development proposals based around Colombia’s socioeconomic contex t aimed at improving the 17 per cent (DANE, 2018) multidimensional poverty situation among a population of 49,732,696 Colombians (DANE, 2018).

‘Confronting development’ (understanding it in order to apply it, rather than routinely accepting it) is vitally necessary for us in these parts of the world. Vital, because the autonomy, personality, culture and vision of the world that have given us the breath of life as human beings and as persons worthy of respect and a better future are at risk (Escobar, 2007). In Colombia, this ‘confronting development’ has made it necessary to propose a structure which will develop national fundamentals and political strategies in the regions that bridge social gaps by demanding processes that are constructed in a participative manner, based on social and institutional dialogue (National Planning Department, 2015).

To a s s i s t p r o c e s s e s b y filling them with experiences, creation and participation is to set in motion comprehensive, sustainable development solutions for every Colombian region; for Findeter, it is the great promise that enables it to go about its work every day. It

To talk of development projects implies setting in motion processes that will guarantee regional transformation. is why the planning, structuring and financing of infrastructure projects that will improve quality of life for all Colombians, and also providing technical assistance for those projects, has become a reference point when talking of nationwide development.

Findeter is an entity t h a t r e s p e c t s , d e fe n d s a n d promotes social inclusion. By integrating financial, customerm a r ke t re l at i o n , e f f i c i e n c y, strategic capital, innovation and sustainability objectives, it can devise supervision and assistance strategies that enable it to deliver comprehensive, s u staina ble projects in response to the tangible needs of Colombian communities.

To t a l k o f d e v e l o p m e n t projects implies setting in motion processes that will guarantee transformation in Colombia, where the different regions will have the necessar y economic, political, structural and social abilities to provide people with wellbeing. This transformation will be real when visible and intangible results come together, so that underlying the materialization of the works is a strengthening of social relations with institutions and the promotion of an inclusive social cohesion where the civilian population becomes the principal agent for change.

In 2016, Findeter embarked on a new commitment as part of its technical assistance product, based on social marketing through a social administration strategy.

The aim of this proposal is to foster company effectiveness in the administration of social guidelines for building social fabric.

This strategy is possible by virtue of bringing in different actors and having the population as the principal cornerstone. Working to restore the human being and relations between individuals, communities, institutions and the state, based on respect, solidarity, trust and participation, is a unique opportunity to move towards a transformation in Colombian society. When a culture and an active citizen participation aimed at forging skills based on common values exist, the collective awareness of the wellbeing of all is firstly increased, after which spaces are opened up for ensuring that the impact of this great enterprise to promote development is a lasting one.

The principal and most important guideline for this strategy is to learn to listen, and from there to recognize the real needs that derive not only from the official figures but also from the everyday experiences of those who will be the direct beneficiaries, while respecting and promoting basic principles such as gender equality and cultural diversity. This, in turn, is a key step in mobilizing and culturally and environmentally activating different levels in communities where technical assistance is provided for works, favoring acceptance, appropriation, a sense

AUGUST 2018

Communities were involved from the time the works started, and participative design workshops were held where people’s opinions on the final designs were taken into account.

When the project started in Buenaventura, there was no appropriation of public space or of areas where people could relax and enjoy leisure activities.

PHOTO: FINDETER

of belonging and, above all, active social participation.

All of this materializes in a plan where we have social guidelines containing six components. These include a group of interinstitutional and community activities that identify possible changes in people’s environmental, social and economic surroundings. Actions are also established to create conditions that will allow local and regional communities and administrations to interrelate in a context of participative creation and environmental sustainability, with a view to boosting the envisaged socioeconomic benefits of the project and hence generate social wellbeing.

In order to illustrate the work done by Findeter with this social administration strategy, the program to begin a transformation of Buenaventura can be described, since the company has taken part in the transformation of an area that has historically been the victim of an exclusive model noted for local corruption and abandonment by the state.

When projects first started in Buenaventura, Colombia’s principal port on the Pacific Ocean, the local

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inhabitants had access to drinking water only every third day, there was a lack of quality education infrastructure, and there was no appropriation of public space or of areas where people could relax and enjoy leisure activities.

The social management plan strategy sets out the six components. The first component, understanding the region, consisted of carrying out a participative, socioeconomic and cultural diagnosis. Partners and risks were also identified. To achieve this, national gover nment bodies like the Ministr y of Housing , Ministry of Commerce, Ministry of Education, and the Social Prosperity Department were consulted, and at regional and local levels, the provincial government and City Hall.

Other important partners i n c l u d e d t h e B u e n av e n t u ra C h a m b e r o f C o m m e rc e a n d its members, public ser vices companies in Buenaventura such as Hidropacífico and Empresas de Energía del Pacífico, traders on First Avenue, the bishop and priests, the president of Asojuntas, the presidents of the Communal Action Boards, women who are the

breadwinners in their households, teachers, parents, various sports teams, youths, children, the ombudsman, and journalists.

The second component was respecting and protecting the environment and biodiversity.

People were made aware of the importance of the work and its benefits, and also of the need to use the environment well and care for it, with a view to ensuring that the project would be accepted socially. At various meetings, community leaders described how to leave a mark on Bahía La Cruz seafront, to contribute to caring for the environment and to consign the violence that has affected the city so badly to the past. It was as a result to this latter concern that the Buenaventura Sows the Seeds of Peace strategy was born.

The aim of the third component, human management and hiring manpower from the region, was to improve relations between hired personnel and the community and to create j o b o p p o r t u n i t i e s fo r l o c a l people. To achieve this, Findeter recommended that non-qualified labor should be hired in the region. Staff were trained in safety

WE SUPPORT SUSTAINABLE PROJECTS

BIBLIOGRAPHY

PHOTO: FINDETER

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 and worries about the projects.

Communities were involved from the time the works started, and participative design workshops were held where people’s opinions on the final designs were taken into account.

The fifth component was social assistance in technical activities. All technical activities that required assistance by the social team were duly carried out and reported, such as drawing up neighborhood and commitment minutes, and repor ts were supplied which illustrated good management of items that could have altered the environment.

The sixth component, namely moni tor ing , evaluat ion and follow-up, consisted of carrying out measurements, analyzing results and identifying where there was room for improvement, so that corrective measures could be applied. Tours of the works were ar range d w i th var iou s actors, such as Social Prosperity, co-administrators, priests, the president o f A s o juntas , the presidents, vice-presidents and treasurers of communal action boards, and the general community, with a view to checking progress, encouraging active participation, and creating a sense of belonging based on continuous, prompt communication.

The aim of this strategy was to bring together different national-,

This strategy sought to recognize the real needs of the different population groups.

regional- and local-level social actors. A cultural, environmental and social mobilization and activation was also achieved, resulting in approval, appropriation and acceptance of the different works and a sense of belonging with respect to them. The aim was also to hear what the real needs of the different groups were and to take them on board through joint creation, so that products could be generated that would improve local inhabitants’ quality of life.

For Findeter, communities are the focal point of the works its executes. We aim to reduce poverty levels by adding an extra ingredient, namely recognizing and empowering people as human beings with values like perseverance, passion and love, and thus to give communities a new meaning.

• National Violence Reference Center (2017).

2016 Forensis. Datos para la Vida. Bogotá: Instituto Nacional de Medicina Legal y Ciencias Forenses.

• DANE (2017). Technical Bulletin. Informative Communication. DANE. • DANE (2018).

Multidimensional Poverty Statistics.

Bogotá: Press Release.

• DANE (2018). Reloj de Población. Retrieved 23/04/2018 from DANE Strategic Information: http://www.dane. gov.co/reloj/ • National Planning Department (2015). Plan Nacional de Desarrollo 2014-2018. Todos por un Nuevo País. Bogotá: Departamento Nacional de Planeación.

• Escobar, A. (2007). La invención del tercer mundo.

Construcción y deconstrucción del Desarrollo.

Caracas, Venezuela: El perro y la rana.

• Hernández, J.M. (December 10, 2017).

La Triste Paradoja del Puerto de Buenaventura.

Retrieved April 6, 2018, from El Espectador: https://www.elespectador. com/economia/la-triste-paradoja-del-puerto-de-buenaventura-articulo-727663 • Rahnema, M. (1991).

Global Poverty. A Pauperizing Myth.

Interculture 24(2), 451.

AUGUST 2018

A transformation

By Findeter Technical Vice-Presidency

As part of Findeter’s aim of providing regions with a tool for carrying out sustainable projects to improve people’s quality of life, Buenaventura is becoming a clear example of executing comprehensive projects.

A FIRST commitment to

Buenaventura was taken on in 2012, when Findeter opened an office in the area so that it could engage in an intensive local dialogue and consolidate its commercial tools. Once the office was open and the local team had been hired, Findeter began to define a long-term urban planning process that prioritized investments and targeted efforts by the national government and various sub-national entities.

The ‘Buenaventura we deserve, 2050 Master Plan’ and the

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emblematic city process were the first long-term strategic planning proposals for the region, and the aim of these was to build a collective vision based on five cornerstones in response to five different approaches, namely social, economic, urban, competitiveness and governance.

The Buenaventura described in this exercise is not just the one that its inhabitants deserve, it is also a reflection of the city’s potential because of its strategic location, the natural riches of its surroundings, and the cultural diversity of its people.

FROM PLANNING TO ACTION

Once sectors had been defined, a start was made on a process of executing comprehensive projects that sought to attack the city’s main and most immediate problems and thus set in motion a plan that would result in a transformation of the city.

The technical assistance and funds management program enabled Findeter to serve as a tool in the execution of projects by various ministries and entities and in an exercise in teamwork between the

national government and provincial and district governments, with the result that it can today be said with pride that 95 per cent of the works have been completed and accepted as satisfactory.

A transverse focus of the works carried out in Buenaventura in accordance with the technical assistance and funds management model was on working in the sectors that were the most important for the city, namely public services, education, and urban renovation.

DRINKING WATER PROJECTS

One of the principal issues that arose from the planning exercises was the need to establish a robust plan for ensuring that the district could provide people with an efficient and decent water supply service. The various working groups came up with an emergency plan consisting of four priority works that would, at least, eliminate service cuts due to turbidity in the Escalerete river.

This Ministr y of Housing emergency plan was managed by Findeter, which executed and satisfactorily handed over optimizations of the Venecia and Escaletere

exercise drinking water treatment plants, a 3,800m3 storage tank, and a 27-inch distribution pipeline. The cost of the projects was 34 thousand million pesos, and they were handed over to the municipality for it to administer and operate in early 2018.

SCHOOLS

Work was also done at five schools, mostly in areas outside the city center. This Ministry of Education project, which was executed by Findeter, directly benefits more than 1,400 children. The total cost of the education infrastructure projects was 8,751 million pesos. They have all now been handed over and are serving the community. The five schools involved in the project are the José Ramón Bejarano, Niño Jesús de Praga - Antonio José Ruíz center, Niño Jesús de Praga - main center, Pablo Emilio Carvajal, and Atanasio Girardot.

AREAS FOR RECREATION AND LEISURE

As mentioned above, urban renovation and social impact areas were built, which are vital for the inhabitants of Buenaventura. A park

WE SUPPORT SUSTAINABLE PROJECTS

STEP BY STEP

was provided for the San Antonio residential complex, involving an investment of more than 1,262 million pesos, and a very ambitious project was carried out that will benefit residents and visitors to the city alike, namely the first phase of the Buenaventura waterfront project.

The Bahía de la Cruz waterfront, an emblematic project executed by Findeter, is an unprecedented, high-impact architectural work in this municipality and will become a tourist attraction throughout the Pacific region. It is worth highlighting the fact that 330 workmen were involved in building it, the vast majority of whom live nearby and therefore earned income from it. Attractions include two sports pitches, a small theater for cultural events, children’s games, commercial modules, a kiosk, pedestrian zones and footpaths, a cycleway, public bathrooms, and benches and other places to rest. Two additional features are the planting of over 800 trees and restoration of one of the city’s emblems, the lighthouse.

The technical assistance that was provided for 11 projects in Buenaventura focused on serving

the inhabitants and improving their quality of life. The community was therefore involved in the different stages of the projects, so that we could understand the real context, engage in dialogue, and act on the problems that were identified and requested. Programs were also introduced to encourage belonging and generate identity with projects carried out by the community.

These projects are set in a complex social context that required not only Findeter’s technical ability and commitment but also a search for solutions to social needs in order to provide sound, lasting infrastructure that will encourage and promote citizen participation and development.

Bringing to fruition these 11 strategic projects that focused on improving living conditions for the people of Buenaventura was achieved because of the technical ability and commitment of each member of Findeter staff, who made it a priority to hand over the promised works not only to improve people’s quality of life but also to rebuild trust in institutions, something the entity today feels very proud of.

INSTITUTIONAL

Findeter

IN FIGURES

Plan

*FIGURES 2010 - JUNE 2018

SECTOR PLANNING

LOCAL PLANNING

SUSTAINABLE AND COMPETITIVE CITIES

MOBILITY

ASSOCIATED DISBURSEMENTS

$1,7

CITIES

TRILLION

287 PROJECTS

17

CITIES

PROJECTS

EMBLEMATIC CITIES DESEMBOLSOS ASOCIADOS:

$225

CITIES

THOUSAND MILLION

28

PROJECTS

€14,7

TOD-NAMA NAMA TANDEM MILLION

REGIONAL PLANNING

COMPETITIVENESS STUDIES

6

TOURISM

LOGISTICS AND TRANSPORTATION MAGDALENA PLUS

1

LAND OF OPPORTUNITIES

2

PROVINCIAL LAND USE PLANS

1

3

REGIONAL DEVELOPMENT VISIONS

AGRICULTURE AND ENVIRONMENT AGRÓPOLIS BOSQUES DE PAZ

SCIENCE, TECHNOLOGY AND INNOVATION SANTANDER LIFE BARRANQUILLA 4.0

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REGIONAL URBAN FOOTPRINT STUDY

INFOGRAPHIC: Alejandra Sarmiento

INNOVATUR BOLÍVAR

WE SUPPORT SUSTAINABLE PROJECTS

Finance

*FIGURES AUGUST 2010 - MARCH 2018

INFRASTRUCTURE AND TRANSPORTATION

ENERGY

TRILLION

TRILLION

$5.3

THOUSAND JOBS CREATED

$2.8 TRILLION

HOUSING, WATER AND BASIC SANITATION

PROVINCES

INNOVATION AND IT

$4.3

$229

HEALTH AND EDUCATION

OTHER

THOUSAND MILLION

TRILLION

MILLION BENEFICIARIES

$5.3

$888

TRILLION

MUNICIPALITIES

PROJECTS

THOUSAND MILLION

Execute SUPERVISION DURING THE CONTRUCTION OF

TRILLION

122 THOUSAND HOMES,

610 THOUSAND PEOPLE

191 SCHOOLS

60 THOUSAND NEW

WHICH BENEFITED PROVINCES

PROJECTS WATER

$2,2 TRILLION

290 PROJECTS

MILLION 100,000 HOMES

$2,1 TRILLION

321 PROJECTS 51,146 HOMES

VIPA-CASA AHORRO

$3,1 TRILLION

113 LEISURE AREAS: PARKS, LIBRARIES, ETC.

INFRASTRUCTURE

$957 THOUSAND

PLACES

64,944 HOMES

96 DRINKING WATER STORAGE TANKS

60 DRINKING WATER

TREATMENT PLANTS

93 THOUSAND CUBIC

METERS CAPACITY

OVER

14

MILLION BENEFICIARIES

AUGUST 2018

INSTITUTIONAL

INNOVATION AND KNOWLEDGE

MANAGEMENT Findeter’s differential value strategies in its development bank activities help to generate wellbeing and to transform regions into sustainable territories.

By Rodrigo Lozano S.

Coordinator, Findeter Center for Innovation and Knowledge (CIC)

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The innovation and knowledge management models add value to the development of the entity.

Foto: FINDETER

AGAINST A background of continual transformation, technological development, research, construction and collective discussion of institutional positions with respect to the problems and needs of people and territories, Findeter needs to meet many major challenges if, as a development bank, it is to provide the best responses.

Internal strategic planning exercises have resulted in frequent proposals and initiatives for the organization to adapt, resulting in such things as structural modifications and improved internal management 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 into a source of sustainable competitive advantages by displaying an effective knowledge management

strategy that enables innovative actions to be devised for generating new programs, products, services and processes that optimize the entity’s capabilities.

Innovation and knowledge management at Findeter thus translates into key strategies for creating differential value, with a view to facilitating the response to new challenges in an opportune and contextualized manner.

It is most definitely a question of setting in motion an open, cooperative ecosystem that promotes

innovation and knowledge management transversally in the institution, in order to generate a strengthening of the institution and essential elements of competitiveness, development and value creation. These strategies have been consolidated as a result of the Findeter Center for Innovation and Knowledge (CIC) being formed.

Findeter views knowledge management as a strategy for developing fundamental instruments that enable corporate objectives to be achieved. The commitment here consists of creating and implementing a knowledge management model that consists of a logical, organized and systematic process for capturing, coding, storing, transferring and applying essential knowledge, experiences, values and contextualized information.

Relevant actions in this process include recognizing the institution’s intellectual capital, including human, relational and structural capital, and taking into account the technological infrastructure, the

WE SUPPORT SUSTAINABLE PROJECTS

surroundings of the applications, integration challenges, innovation needs, corporate imperatives, the organization’s cultural preparation, and products derived from the knowledge generated.

Reflecting on, and carrying out a critical internal analysis of, the various staff experiences in relation to their everyday activities and then making the knowledge generated, together with details of successful cases and lessons learned from mission and entity support processes, visible throughout the organization is a big challenge. It can be defined as key knowledge that is acquired and transferred in order to provide the intended competitive advantage and value, namely having a positive impact on the entity’s development and growth.

In the case of Findeter, the external approach to the knowledge management strategy is conditioned by and directed at knowledge of the region’s needs, local administration entities, and transition

CIC team.

processes in many municipalities towards more urbanized cities with complex economic dynamics and constant technological advances.

The entity appreciates the advantages of adequate knowledge management, and it has therefore developed and drawn up a theoretical model that corresponds to implementing the strategy. This model is currently at the testing and adjustments stage.

Innovation at the bank is deemed to refer to the ability to generate differentiated, ingenious, creative and profitable solutions to meet the needs, expectations and demands of its interest groups, the market and the regions, and to foster social wellbeing for Colombian people.

Findeter has become a national reference point for innovation in recent years, due to its regional planning programs and products that are tailor-made to meet the needs of regional entities. One example of this is the Caribbean and Santanders Diamond program, which won the 2015 World Smart City Awards in the most innovative idea category and the 2017 ISOCARP Award for Excellence, granted by the International Society of City and Regional Planners.

There is currently a high level of innovation in the products it offers its interest groups. Although this added value has not initially been developed in a formal manner as part of an innovation concept, it has shown signs of the positive results, in terms of progress in regions and in the country, that are obtained by introducing this approach.

Due to external recognition and internal guidelines, innovation

Knowledge of regions and interest groups gives the development bank a differential value.

has been promoted since 2015 as one of the institution’s explicit values, and it has become a cornerstone of the entity’s strategic plan, giving it a formality and relevance and making it an instrument of competitiveness. As of now, innovation should be a further hallmark of products and services, giving the entity a differential value. Its formalization and appropriation by Findeter should mean staff and citizens having the opportunity to create spheres of action that enable them to think, share and do, together.

Given the direction that the institution’s presidency has taken and based on the setting-up of the CIC, the Findeter innovation model is now promoted. This initiative has the following objectives.

To formalize the innovation process at the entity and to systematically take it on board.

To generate new knowledge and ideas that will enable new products, processes and services to be developed, or existing ones to be improved.

To be the medium through which all staff at all levels in the organization can culturally appropriate the process, contribute to innovation with their ideas, and promote the philosophy of “doing things in a different way”.

To generate a top-ranking managerial instrument that is capable of making a substantial contribution to the success and the development of the entity.

The model was developed in 2017 and is currently at the implementation stage. This has four components: the strategy, the culture, the process, and the structure of interrelations for innovation.

AUGUST 2018

INSTITUTIONAL

Portfolio OF PRODUCTS AND SERVICES

1

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INSTITUTIONAL 72 / 73

2

REDISCOUNT CREDIT • ORDINARY FUNDS • COMPENSATED RATE

WE SUPPORT SUSTAINABLE PROJECTS

3

TECHNICAL ASSISTANCE, PROJECT MANAGEMENT • DRAWING UP AND STRUCTURING PROJECTS • STRENGTHENING OPERATION AND SUSTAINABILITY • VIABILITY • APP VALIDATION • STRUCTURING • SUPERVISION

• MANAGEMENT OF DIRECT FUNDS • MANAGEMENT OF OUTSOURCED FUNDS

5

INVESTMENT ALTERNATIVES • PORTFOLIO PURCHASE • PUBLIC STOCK MARKET ISSUE

INFOGRAPHIC: @soy_vito

4

MANAGEMENT AND ADMINISTRATION OF FUNDS

AUGUST 2018

The X Factor PHOTO: Archivo Semana

in development banking ALDEMAR MORENO Editor in chief, Dinero magazine

COLOMBIA HAS a long tradition of development banking institutions. The goal of this type of entity is to promote specific sectors that are key to the economy.

Today it is easy to explain this principle, but the story is marked by a debate of tremendous importance.

The rise of these institutions presupposes an answer to the worrying question of how countries can achieve wealth and development. There are those who consider that economies can develop their full potential simply if the state concentrates on defining clear rules for all parties involved in the economy, who should then interact freely without any intervention by public institutions.

But this view ignores the fact that the very development of societies implies a bias toward imbalance, which results in many sectors lagging behind.

Others therefore consider that there is a need for development policies if this situation is to be overcome.

This latter approach is the one that Colombia has adopted, hence the long development banking tradition in the country. At one point, even Banco de la RepĂşblica played a key role in financing specific sectors, such as coffee.

In the case of industr y, the now -de funct Instituto de Fomento Industrial (IFI) had the task of planting the seed and boosting growth in many of the country’s manufacturing sectors. These experiences have obviously revealed the challenges that this type of initiative has to face, because there is room for improvement in any policy.

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And it is precisely this that the country has been doing, because during the last decade various initiatives have sought to bring new ideas and a new direction to sector promotion, through another kind of intervention.

The result of this is a development bank fabric in Colombia that has proved to be both favorable and effective. Examples include Banco Agrario, Banco de Comercio Exterior de Colombia (Bancoldex), Financiera de Desarrollo Nacional (FDN) and Financiera de Desarrollo Territorial (Findeter), all of which have been playing a key role.

These institutions have successfully boosted specific sectors and activities. Many exporters have succeeded in conquering new markets by using the mechanisms established by Bancoldex, FDN has used its funds to encourage investors to invest more private capital in 4G projects, and Findeter has designed a credit line that has been used to build new education infrastructure at the majority of the most important universities in the country.

These are merely some examples of how development banking has become key to the Colombian economy developing its full potential. There can be no doubt that the challenges are enormous and the work to be done is complex, but in all this, development banking will continue to play a key role in leveling the playing field for all parties involved in the economy.

IS WITH COLOMBIA APOYAMOS PROYECTOS SOSTENIBLES

IS WITH COLOMBIA IS WITH COLOMBIA

TOGETHER WE MAKE IT HAPPEN TOGETHER WE MAKE IT HAPPEN TOGETHER WE MAKE IT HAPPEN

North Western Region

Caribbean Region

MEDELLÍN

Tel.: (4)6046570-6046571-6046946 Cra. 43B # 16 - 95, oficina 1113 Edificio Cámara Colombiana de la Infraestructura

BARRANQUILLA

Tel.: (5) 358 7970 Cra. 52 # 76-167, oficina 510

CARTAGENA

Includes Antioquia and Chocó provinces.

Tels.: 301 363 9541-310 730 6022 Barrio Chambacú Edificio Inteligente, oficina 625

MONTERÍA

North Eastern Region BUCARAMANGA

Tel.: (7) 630 2043-652 6569

Calle 35 # 19-41, oficina Torre Sur 411

CÚCUTA

Cel.: 300 565 4935 Av. 5 # 13-82, oficina 310 Barrio Centro Edif. Centro de Negocios 5 Avenida Includes Arauca, Norte de Santander and Santander provinces, and municipalities in southern Cesar.

Tel.: (4) 781 6480 Cel.: 321 249 9199 Calle 31 # 4-47, oficina 603 Edificio Los Ejecutivos

SANTA MARTA

Coffee Growing Region

SAN ANDRÉS

PEREIRA

Cel.: 300 444 6375-300 618 6721 Calle 24 # 3-95 Edificio Banco de Bogotá, oficina 807

(6) 335 8701-335 8703 Cra. 13 # 13-40, oficina 404B

Cel.: 315 770 2403 Cra. 2 # 4-61 Diagonal a Yamaha

Includes Caldas, Quindío and Risaralda provinces, and municipalities in northern Valle del Cauca.

SINCELEJO

Cel.: 320 228 7574-310 602 2320 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.

Central Region BOGOTÁ

Pacific Region CALI

Tel.: (1) 623 0370 Calle 26 # 59-41, oficina 705 Edificio Cámara Colombiana de la Infraestructura

Tel.: (2) 332 1899-332 1900 Cra. 100 # 11-90, oficina 412

Southern Region

PASTO

NEIVA

Includes Cauca, Nariño and Valle del Cauca provinces.

Includes Huila, Putumayo, Tolima and Caquetá provinces.

Cel.: 301 376 1918 Cra. 33A # 19-75, piso 2 Avenida de los Estudiantes

Tels.: (8) 871 4123-871 7768 Cra. 5 # 10-49, local 102-103 Edificio Centro Comercial Plaza Real

For questions of suggestions: For questions of suggestions:

VILLAVICENCIO

Cel.: 317 656 9787 Centro Comercial Primavera Urbana Calle 15 # 40-101, lobby 2, oficina 612 Includes Bogotá and Amazonas, Boyacá, Casanare, Cundinamarca, Guainía, Guaviare, Meta, Vaupés and Vichada provinces.

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