USD 630 million for road development and pluvial drainage in Brazil

(Caracas, March 5^th, 2013).- CAF, Development Bank of Latin America, announced the approval of USD 631.5 million for programs that strengthen the development agenda of the Federative Republic of Brazil.

The first operation, for USD 300 million, is aimed at the Mine Roads Program in the State of Minas Gerais; the second operation, for USD 204 million, for the Macro-drainage System of the Baquirivu-Guasu River, in the State of Sao Paulo; and a third loan, for USD 127.5 million, for the Road Program in the Amazon State.

The objective of the Mine Roads Program is to increase the transportation capacity of the state's highways in view of the integrating effect that these roads have, facilitating the access of the population to areas that provide social and productive services, and reducing the logistic costs of transportation that limits the state's capacity to grow.  

The Program consists of the pavement, improvement, widening, and construction of 16 integrating roads for a total extension of 402.9 kilometers through the different productive micro-regions of the state. Through a greater internal structuring of the road network, it will contribute to the connectivity of the 23 municipalities of the State, directly benefiting 1.5 million people.

Enrique Garcia, CAF's Executive President, pointed out that "Investment in infrastructure is one of the key factors for the development and integration of the region, therefore, it is one of the priorities in the comprehensive development model that CAF promotes for Latin America".

At the same time, USD 127.5 million were approved for the Road Program for the Amazon State, to support economic and social development through the construction, rehabilitation, and improvement of roads that will provide comprehensive solutions to traffic and urban mobility problems in Manaos, the capital city.

Garcia added that "Due to the significant economic growth experienced by Manaos, the city has registered a significant population increase, which currently reaches 1.8 million inhabitants. In this respect, CAF has been supporting the development of the road and urban infrastructure in the city through several financing programs with the Prefecture of Manos, such as the Urban and Environmental Infrastructure Programs in Manaos (USD 75 million); Development of Tourism (USD 21 million); and with the Amazon State for the Socio-Environmental Program of the Igarapes of Manaos (USD 52.5 million).

Resources to improve the quality of life of the inhabitants of Sao Paulo

The third loan approved today in favor of Brazil reaches USD 204 million, aimed at building and expanding the capacity of the drainage systems and flood controls in the basin of the Baquirivu-Guasu river, to contribute to the improvement of the quality of life of the population; carry out an environmental and social recovery of the area; and reduce vulnerability in the face of flooding of strategic infrastructure in the State of Sao Paulo.

Specifically, the project foresees the construction of open channels throughout 20 kilometers along the Baquirivu-Guasu river; control of water flows; relocation of population at risk due to flooding at the margins of the Baquirivu-Guasu river; construction of an ecological park, and generation of culture, tourism, education, and sports practice options for the population around the river.

The Head of the Latin American Financial Institution stated that "The Program is framed within the investments advanced by the National Government to improve the quality of life of Brazilian people by means of the execution of works that simultaneously increase the resilience of the infrastructure, and reduce the flooding risks".

Between 2008 and 2012, CAF has approved a total amount that reaches USD 8.386 billion in favor of Brazil, aimed mainly at the road and logistic sector, the development of tourism and sports infrastructure, the environmental sector, the financial sector, and the provision of services for natural disasters.