RESILIENT AND SUSTAINABLE INFRASTRUCTURE FOR RECOVERY DPF 2

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The development objective of the Second Resilient and Sustainable Infrastructure for Recovery Development Policy Financing in Colombia is to support the Government of Colombia's multiyear efforts to sustain access to critical infrastructure services for firms and households following the COVID-19 crisis, while establishing the policy foundations for recovery through sustainable and resilient infrastructure. The operation includes four pillars. Under Pillar 1, Sustaining Access to Critical Infrastructure to Secure the Economy from COVID-19, provides basic services to the population despite facing unprecedented operational and financial challenges. Pillar 2, Resilient and Sustainable Energy and Transport Infrastructure for Recovery from COVID19, focuses on establishing the policy foundations for an accelerated recovery from COVID-19 through resilient and sustainable infrastructure. Specifically, policy measures will establish a policy and regulatory framework to foster the development of Non-Conventional Renewable Energy (NCRE) while at the same time closing the access gap and reducing gender gaps in the sector. Pillar 3, Increased Access to Digital Infrastructure for Recovery from COVID-19, includes policy measures to introduce innovative incentive mechanisms to foster private infrastructure investments, such as measures to offset operators’ costs and improve connectivity in rural and non-commercially viable areas. The second development policy financing supports the implementation of a national program to remunerate operators for making internet available free of charge in schools and nearby rural areas with limited access to digital infrastructure. This measure supports increased adoption and incentivize operators to increase coverage beyond the schools. Pillar 4, Sound Fiscal Management and Long-Term Infrastructure Finance for Recovery from COVID-19, focuses on further strengthening the framework for mobilizing private and long-term financing to facilitate the transformation of infrastructure sectors through two complementary policy actions. The first one creates an Infrastructure Fund to capture alternative payment sources for infrastructure projects, such as recycling projects' residual value or land value capture, without fiscal budgetary impacts.