CAF opens USD50 million credit line to develop colombia's infrastructure

(Bogota, Jan. 15, 2014)-CAF-development bank of Latin America-approved a USD50 million line of credit bound for Colombia's Conconcreto S.A. construction company to finance working capital, acquire new machinery and to issue guarantees necessary to develop construction projects across Colombia.

"Through this type of operation, CAF aims to facilitate the implementation of infrastructure projects the country needs to consolidate its growth and development," said L. Victor Traverso, CAF's representative director in Colombia, who highlighted the financial institution's role as a promoter of sustainable development and regional integration via investments in the country's roads, airports and port infrastructure.

CAF financing will allow Conconcreto, Colombia's largest construction company of its kind in terms of assets and revenue, to compete for mega-projects whose capital requirements are high, and thus consolidate the company's leadership potential in the country's infrastructure sector.

Traverso added that Colombian infrastructure still lags in certain areas and prioritized the need to improve access to ports and expand highway networks to decrease transportation costs for local producers while increasing exports.

Traverso also stressed how the construction sector's growth has bolstered the broader economy. "This sector has been one of the engines of the country's development over the last decade thanks to the implementation of major projects in sectors such as energy, oil, gas and highway infrastructure."