The line is open to territorial entities and their decentralized agencies, public utilities, transportation operators, and public, private and mixed companies.

All projects must pass a technical, financial and environmental evaluation in accordance with KfW standards, which raises the bar and favors suppliers with certifications and proven quality solutions. The line also includes a free technical assistance component for beneficiaries.

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Renewable energy and energy efficiency

This area covers:

• Renewable generation (solar, wind)
• Energy efficiency in productive and industrial infrastructure: modernization of facilities, energy management systems, efficient lighting in public and industrial spaces.

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It is part of a broader context of accelerating the energy transition in Colombia, which in parallel is processing a long-term renewable energy auction (15-year contracts) to be awarded before July 31, 2026.

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Mobility and sustainable urban transportation

Three types of projects are included here:

• Incorporation of low or zero emission transportation fleets (electric buses, mainly), associated infrastructure (charging points, depots), etc.
• Implementation of intelligent traffic management systems.

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Bogotá already operates more than 2,000 electric buses, the largest fleet in Latin America, and has just inaugurated a new Strategic Mobility Center with advanced analytics for incident management and traffic control.

Other Colombian cities have similar plans at different stages of maturity. Road signaling, intelligent traffic light control, video surveillance and license plate detection systems, and associated street furniture are common components of these projects.

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Drinking water and basic sanitation

This is the area with the largest investment gap in Colombia. More than 5 million Colombians still lack access to drinking water, and the country estimates that 126 billion pesos are required to close the sanitation gap.

The government already has 42 water and sanitation projects underway in 37 municipalities in 17 departments, with an investment of 1.14 trillion pesos financed with future vigencias for the 2026-2028 period.

In parallel, the Bogota Aqueduct and Sewerage Master Plan, currently in the execution phase, contemplates an estimated investment of more than 2.1 billion euros for the modernization and expansion of the network, the construction of new storage tanks and the optimization of wastewater treatment plants.

Eligible projects include works to expand coverage, improve service quality, optimize the use of water resources and reduce network losses.

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Context

The confluence of this credit line with the energy transition agenda, mass transportation projects and the structural deficit in water and sanitation suggests that Colombia is in a cycle of investment in sustainable urban infrastructure that will extend over the next decade. The fact that projects must pass KfW’s quality criteria is a relevant element: it favors suppliers with proven technical and environmental standards over lower-cost but less demanding alternatives.