AFD Promotes Eco-Friendly Housing in Peru

The European Union (EU) is now providing support to the “Mivivienda Verde” program in Peru, via the Latin America Investment Facility (LAIF). AFD is a lead financing partner, as part of its sectoral strategy to strengthen the social housing market and sustainable construction in Peru. Launch of this new support was recently announced by AFD, in collaboration with the European Union Delegation in Peru, the French Embassy in Peru, the German Embassy in Peru, KfW, and the Peruvian Ministry of Housing, Construction and Sanitation.

This support takes the form of a grant of €10 million, the bulk of which (€9.25 million) will help subsidize interest rates for people who take out a loan to purchase a housing unit that has been certified as “sustainable” by Fondo Mivivienda S.A. 

The remaining funds are earmarked for a technical assistance program to develop several aspects related to the program:  

• policy and technical dialog on sustainable construction 
• improvement of capacity building and 
• knowledge dissemination among stakeholders in the sector, on topics such as the development of resource-efficient technologies, urban planning, bioclimatic design, gender equality in social housing, and the risks associated with climate change

More than 5,000 loans supported!

AFD’s financial support and technical assistance to Fondo Mivivienda started in 2015 with financing of €120 million to support it in developing the Mivivienda Verde program.

In 2019, AFD and KfW joined forces to grant an additional €150 million in financing to heighten the goals of the program and to finance new social real-estate projects with enhanced environmental criteria.

By the end of February 2021, 437 projects had been certified as sustainable. This has enabled the construction of more than 61,000 housing units throughout Peru. In operational terms of operations, a total of 5,519 Mivivienda Verde loans were granted in 2020, representing 66% of the Mivivienda loan portfolio.

The content of this publication is the sole responsibility of AFD and does not necessarily reflect the views of the European Union.