Caracas Rail Project Brings Transit to 200,000 Residents Through CAF Grant

The Caracas-Tuy Medio Rail Project has received a US$200 million grant from the CAF multilateral lender for Stages I and II. This brings total multilateral participation in the project to US$360 million. The funding supports transport infrastructure that connects Caracas with surrounding areas.

Rail Funding and Electricity Grid Steps

Interim President Delcy Rodríguez signed an agreement with US energy giant General Electric to rebuild Venezuela's electricity grid. In January 2026 the US began studying preliminary ways to fund Venezuela's infrastructure rebuilding, potentially using agencies like the International Development Finance Corp. These moves follow the ouster of President Nicolás Maduro and form part of efforts to open the economy to US investors.

The rail grant and electricity agreement address long-standing service gaps that affect daily travel and power reliability for Caracas households and businesses. Residents in the city's main communes may see improved connectivity once stages advance, while grid work targets supply stability across urban zones.

Direct Reach of Territorial Action Plan

More than 200,000 people in Caracas are set to benefit from the fourth cycle of the 2024 Territorial Action Plan, which includes over 60 projects in the city's main communes. These works focus on local infrastructure needs such as roads and basic services within established neighbourhoods.

Venezuela's oil output growth remains constrained by severe infrastructure decline and deteriorating upstream assets that require extensive restoration. New investment interest has not yet altered this upstream picture, which continues to limit revenue available for broader public projects.

The government expects the rail stages and territorial projects to proceed with the announced multilateral support. Further implementation details will depend on coordination between national authorities and the participating lenders.