![Cofinancing approved to upgrade transport system for hydrocarbon gas and liquids Cofinancing approved to upgrade transport system for hydrocarbon gas and liquids](/media/29726/mdirectoriocxjulio2002-2.gif)
Cofinancing approved to upgrade transport system for hydrocarbon gas and liquids
To back an investment program to upgrade the quality of transport services for gas and liquids associated with hydrocarbons in Bolivia, the Andean Development Corporation (CAF) today approved a corporate loan up to US$50 million as part of a cofinancing with the Inter-American Development Bank (IDB) for a total cost of US$263 million. The executing agency is the Bolivian hydrocarbon transport company Transporte de Hidrocarburos (Transredes).
The CAF executive president, Enrique García, said execution of the program in Bolivia would have a positive effect on the profile of the balance of payments, tax revenue and on achievement of higher levels of social well-being in the country as a consequence of the expansion of sources of direct and indirect jobs.
One of these positive impacts will be stronger growth of the GDP, thanks to the stimulus from higher levels of investment and increased production and export of hydrocarbons, García added.
Transredes is one of the three corporations into which the Bolivian state oil company Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) was divided as part of the capitalization process which the government put through in 1994. Two of these companies are engaged in hydrocarbon exploration and production, while Transredes handles transport through existing pipelines.
The lead banks for the cofinancing are CAF and IDB, with the participation of Banco Bilbao Vizcaya Argentaria (BBVA) and ABN Amro Bank as coleaders in the financing structure.
The program has a total cost of US$263 million. The CAF and IDB will finance US$220 million. The CAF will cover portion A up to US$50 million at 10 years with two years’ grace, and lead portion B which must contribute US$38 million at eight years with two years’ grace. The IDB is to finance portion A up to US$75 million at 10 years with two years' grace and structure portion B up to US$57 million at eight years also with two years' grace.
The execution of the first stage of the program includes expansion of the transport capacity for gas and liquids, and the upgrading of the service for these products.
Given the size of Transredes’ operations and the multiple uses of the resources allocated, the project includes plans and programs to prevent and mitigate the social and environmental impacts.
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