CAF launches Border Cooperation and Integration Fund

(Caracas, March 27, 2008).- Reaffirming its commitment to regional integration and in the interests of strengthening its active role in financing development projects, mainly in the border spaces of its shareholder countries, the Andean Development Corporation has set up the Border Cooperation and Integration Fund (COPIF), with initial funds of US$4 million. The Fund will be financed by contributions from the Corporation’s 2007 net profits along with funds from other institutions or countries under agreements signed with the financial organization.

"The objective of the fund - CAF President & CEO Enrique García explained - is to support and finance the identification, preparation and execution of high-impact projects which promote sustainable human development in border regions, and strengthen cooperation, dialog, mutual confidence and cross-border integration at bilateral and multilateral levels."

He added that the Corporation had taken special interest in the report of the Commission of the Organization of American States (OAS) presented to the Meeting of Consultation of Foreign Ministers on March 17, 2008, which recommends "development of cross-border cooperation and integration programs, including projects in the environmental area, with the support of international organizations such as IDB, CAF and UNDP, among others."

The eligible beneficiaries are official bodies responsible for the formulation, design and execution of initiatives of sustainable human development and integration, as well as international organizations which promote cooperation and integration programs. In both cases the activities must benefit the border areas of two or more shareholder countries.

The COPIF funds will be used to finance actions under the CAF Border Development and Integration Support Program (PADIF) which stimulate sustainable human development and integration, and offer assistance and finance for preparation of investment projects. The Fund will also support providers of advice and finance for projects for institutional strengthening, social promotion, exchange and dissemination of best cooperation practices, dialog, mutual confidence building, and border integration between shareholder countries.

Achievements of PADIF

The Border Development and Integration Support Program (PADIF) is an initiative designed by CAF to strengthen its mission and strategic presence in regional integration. The Corporation is currently involved in over 12 bilateral and multilateral initiatives through PADIF.

In less than one year of operation, PADIF has supported the design and start-up of Binational Cross-border Development and Integration plans between Argentina and Bolivia, and Colombia and Peru, projects to strengthen physical infrastructure and social development between Colombia and Venezuela, and on the border between Bolivia and Peru, while continuing to develop works in the border region of Ecuador and Peru. In Colombia PADIF has supported the program of the Vice Presidency of the Republic to identify and execute important social infrastructure projects in Colombian border municipalities.

Thanks to PADIF, subregional border integration programs between CAN member countries, and between Mercosur countries have begun definition of the Bilingual Education Program in Border Areas, similar to the program which is currently operating on the Brazilian-Colombian border.