Colombia Resilient and Inclusive Housing Project

About the project

The Project supports a shift in the Government of Colombia’s housing policy and investment along four key tracks: (a) Improved targeting to poorer and vulnerable households; more specifically, the proposed project supports the new Casa Digna Vida Digna (CDVD) home improvement program whose beneficiaries are disproportionately poor and employed in the informal sector. (b) A focus on incremental home improvement, as low-income beneficiary households predominantly need to improve the quality of their existing housing stock. (c) Increased efficiency in the deployment of housing subsidies; more specifically, the average per household subsidy value for the CDVD Program is $4,158—67 percent of the value of all ‘up market’ subsidies in place prior to 2018. (d) The introduction of a new and innovative rental subsidy program targeting the highly vulnerable group of migrants from Venezuela. This rental subsidy instrument can serve as a potential model for other countries facing cross-border migration challenges in the region and globally.

Project Development Objective (PDO)

To improve the quality of housing and public space for vulnerable households, including migrants from Venezuela, in selected municipalities.

Project Implementation Status

Project implementation has accelerated significantly, with clear and measurable progress across both physical and financial dimensions. The most recent supervision mission confirmed a substantial improvement in the progress toward PDO indicators, reflecting the resolution of earlier design, procurement, and fiduciary bottlenecks.

As of the latest reporting period, 15,957 people (5,319 households) have benefited from improved urban living conditions under the Project. Of these beneficiaries, 7,879 are women and 4,452 are Venezuelan migrants. This represents a marked increase compared to previous reporting periods and reflects improved implementation capacity across key components.

In parallel, and in line with regional operational guidance, the PDO rating was revised from MS to MU, reflecting the fact that, despite recent acceleration, the Project will not fully achieve its PDO indicators by the current closing date.

Behind these results, the Project has achieved tangible improvements in overall project management, particularly in financial management and procurement. For the first time since effectiveness, the Ministry of Housing fully executed its annual budget reserve, avoiding the loss of allocated resources. Long-delayed procurement processes for integrated neighborhood improvements (MIB) and public space interventions have been completed, and physical works have begun. In parallel, the Project has made significant progress in the implementation of rental subsidies for Venezuelan migrants, supported by strengthened coordination with municipalities and private-sector partners.

The recently approved restructuring has further strengthened implementation by introducing new housing improvement modalities, which are expected to substantially reduce processing times and enable a faster scale-up of the Project’s most impactful interventions. These adjustments have positioned the Project on a much stronger implementation trajectory.

From a financial perspective, cumulative disbursements currently stand at USD 43.67 M (32% of the loan amount), with USD 32.69 M committed and USD 10.74 M executed in payments. Based on the current implementation pace, an additional disbursement of USD 8.5 M is expected in January 2026, aligned with projected cash flow needs of approx. USD 25.6 M for the first half of 2026. Should the proposed extension be approved, an additional disbursement of approx. USD 20 M would be required in mid-2026 to sustain execution.

Despite the strong acceleration observed, the Project will not be able to fully recover the significant delays experienced during the first two years of implementation. Consequently, it is not expected to fully disburse or achieve all final targets by the current closing date of 30 June 2026. In response, the Ministry of Housing is preparing a formal request for a 23-month Project extension, which is currently under discussion with the Bank and is intended to consolidate recent gains, complete ongoing investments, and maximize the Project’s development impact.

Overall, the Project is now on a much stronger and more credible implementation path, with improved institutional capacity, resolved operational constraints, and clear momentum across core components. Continued close attention to fiduciary execution, sustained political and institutional commitment, and timely approval of the proposed extension will be critical to maintaining this trajectory and ensuring the effective use of both loan and GCFF grant resources.

Relevant Documents:

• Project Appraisal Document (PAD)
• World Bank Project Information Page