Loan agreements signed for road maintenance and natural disaster mitigation in Bolivia

(La Paz, November 30, 2011) .- Enrique García, president & CEO of CAF - Latin American development bank - and Bolivian Planning Minister Viviana Caro signed two loan agreements in CAF headquarters in Caracas. The first for US$75 million was for rehabilitation and improvement of eight sections of the Basic Road Network (RVF), and the second for US$2.7 million for integrated emergency response in Villa Tunari and Shinaota in the Tropico Cochabamba area.

"The signing of these agreements reaffirms CAF's commitment to Bolivia which covers a wide range of areas from finance for infrastructure, one of the cornerstones of our policy, to works for natural disaster prevention and mitigation," CAF President & CEO Enrique García said during the signing in the headquarters of the international bank.

The US$75 million loan will finance the Road Upgrading Program which will rehabilitate and upgrade eight sections of the Basic Road Network (RVF) currently in a state of deterioration and which require urgent action.

The works will be executed by the Bolivian Highway Administration and the Bolivia government will contribute a counterpart amount of US$32.1 million.

Due to its characteristics and development objectives, the project was given priority and is eligible for funds from the CAF Compensatory Financing Fund (FCC), a mechanism for reducing interest payments on the loan.

The first stage of the Roads Upgrading Program covers the sections Río Seco-Desaguadero, Sunchu Tambo-Puente Sacramento, Sacaba- Colomi, Av. Blanco Galindo, Cobija-Porvenir, Cotoca-Pailón, Santa Cruz-Warnes, and Puente Limones-Yotaú.

The funds under the second agreement for US$2.7 million come from the Contingency Financing Facility for Integrated Response to emergencies caused by catastrophic natural phenomenon, granted to the country in 2010 for US$75 million.

Under this credit, the Ministry of Environment and Water, executing agency, will channel funds into rehabilitation of services affected by natural disasters caused by La Niña phenomenon in 2010-2011 and implement preventive actions in the watershed between Villa Tunari and Cochabamba municipalities in Shinaota department.

Additional information on the sections covered by the Road Upgrading Program

• Río Seco-Desaguadero which cuts across the northern Bolivian Altiplano Desaguadero municipality is located on the border with the Republic of Peru (97.41 km).
• Sunchu Tambo-Sacramento Bridge linking Chuquisaca and Cochabamba departments (18.96 km).
• Sacaba-Colomi connecting the cities of Cochabamba and Santa Cruz along the "old road" (37.08 km).
• Av. Blanco Galindo is the only project in the Program located in urban and peri-urban areas. Part of the Santa Cruz highway, it connects Cochabamba with the town of Quillacollo.
• Cobija-El Porvenir located in Pando department in the far north (32 km).
• Cotoca-Pailón in Santa Cruz department. An important link with two important major routes: the connection to the city of Trinidad and to Puerto Suarez on the border with Brazil (39.08 km).
• Santa Cruz-Warnes part of the Santa Cruz-Cochabamba highway (26.6 km).
• Puente Limones-Yotaú part of the bi-oceanic corridor which will connect the Pacific and Atlantic (52.58 km).