$400 million approved for Colombia for infrastructure and public finance strengthening projects

Out of a total of $650 million approved by the CXVII Board Meeting held today in Caracas, the multilateral institution destined $400 million to finance infrastructure and public finance strengthening projects in Colombia.

CAF Executive President Enrique García said that the main objectives of the two operations approved today for Colombia were to accompany the government in its economic program, and contribute to financing the construction of integrated mass transport systems in the cities.

The $250-million operation backs the actions taken by the government in the area of fiscal management. García said that the financial support would contribute structural solutions to strengthening national revenue and optimizing the use of funds to achieve the fiscal sustainability of local governments. The loan also supports the adoption of public management tools to improve the efficiency and transparency of resource allocation and management.

The other operation approved for Colombia is for $150 million, of which $65 million are destined for the urban development program and $85 million to partially finance the Transmilenio system which began to be successfully implemented three years ago in Bogotá.

The CAF president explained that the two components of this operation would make an effective contribution to raising the quality of life for city dwellers, among other benefits.

The objectives in supporting the development of integrated mass transport systems include the organization of the institutional structure of urban transport, the creation of incentives for citizens to use public transport, recovery of the public spaces generating ordered urban development in the main corridors and throughout the area of influence, and the promotion and consolidation of urban development by implementing these systems as structural arteries in cities and generating opportunities for real-estate investment.

This is the second operation in which the CAF has supported the development of mass transport systems in Colombian cities. In 2001 the multilateral institution approved a credit for $100 million for the Bogotá District, destined to provide partial finance for the Transmilenio project.

It should be recalled that, as part of the Latin American Carbon Program, PLAC, the CAF signed an agreement with the Bogotá District to study the marketing of reductions in carbon-dioxide emissions obtained by Transmilenio. In the future, the city could receive additional funds from the sale of the emission reductions to developed countries committed to the Kyoto Protocol.