CAF President renews support for peace projects in Colombia

The Andean Development Corporation and the Colombian government today signed a loan agreement for US$200 million for the second phase of the Roads for Peace Program, bringing CAF’s total commitment to the program to US$362 million. The program aims to develop transport infrastructure in depressed areas affected by the armed conflict.

The signing took place in Casa de Nariño, the presidential palace, with the presence of President Andrés Pastrana and Transport Minister Gustavo Canal Mora. "This operation renews our support for the efforts of the Colombian government in favor of peace," García said, adding that one of the Corporation’s priorities is to promote programs to foster economic, political and social normality in partner countries.

The loan agreement joins the US$162 million granted in October 2000 by the multilateral lender for the first phase of the Roads for Peace Program. The loan is made in the framework of the National Development Plan “Change for Building Peace,” whose fundamental objective is the search for peace to return the country to the path of sustainable growth and social unity. To develop the first stage, the Transport Ministry today handed over funds for road maintenance to 50 Colombian municipalities, as part of the Alliance subprogram of the Roads for Peace Program.

The second stage of the program covers the paving of over 1,200 kilometers of highways in the provinces of Putumayo, Nariño, Cauca, Huila, Choco, Risaralda, Meta, Guaviare, Boyacá, Santander, Antioquia, Bolívar, Magdalena, Sucre, Norte de Santander, Caldas, Arauca, Casanare and Córdoba. Major investments will also be made to reclaim waterways, such as the Meta River, and build bridges on the secondary and tertiary road network. A new component of the Program is the Airports for Peace Subprogram of works to expand and improve airport infrastructure.

In addition to continuing the Roads for Peace projects, new works will include upgrading the road network; developing temporary employment plans; and schemes for community participation in the execution of the projects. The Program is expected to generate about 40,000 direct jobs for local skilled and unskilled labor in construction, as well as use of local machinery.

One million of the US$200 million is to be used for institutional strengthening and development of a management information system to provide the Transport Ministry with accurate and timely information on the projects and financing.

Technical Cooperation Agreements In other developments, the CAF signed two technical cooperation agreements with the Transport Ministry and the General Superintendency of Ports and Transport.

The Ministry will receive US$48,000 for preparation of a Manual of Specifications for Construction of Secondary and Tertiary Roads to update parameters for this type of road. These funds are in addition to the US$50,000 granted by the CAF at the beginning of this year, making a total of US$98,000, supplemented by a contribution of US$50 million from INVIAS.

The Ports Superintendency will receive US$90,000 from the CAF to strengthen inspection, oversight and control in the ports sector. In addition, the Superintendency will contribute $30,000 as joint financing to carry through the project.