Agreement signed with FONPLATA

(Caracas, October 30, 1990).- A framework agreement was signed today (October 30) between CAF and the Financial Fund for Development of the River Plate Basin (FONPLATA). The agreement establishes exchange of experiences and provides finance for programs of technical assistance and advice for the institutional development of the two organizations.

Latin American and Caribbean countries have signed several subregional agreements to stimulate development and integration. In response to these processes, multilateral financial organizations have been created, such as CAF – as the financial arm of the Andean Group - and FONPLATA by Argentina, Bolivia, Brazil, Paraguay and Uruguay.

With 90 million inhabitants and an area of 3,000,000 km², the River Plate basin is one of the largest in the world. The River Plate and the Uruguay, Paraguay Panama rivers are the main arteries of this waterway. To give an idea of its size, the basin occupies a space equivalent to one sixth of Latin American territory.

The Andean Group, formed by Bolivia, Colombia, Ecuador, Peru and Venezuela, has a population of over 19 million in an area of 4.7 million km².

Together the potential of the resources – especially hydroelectric – of the two geographical spaces is unlimited. Under the agreement, CAF and FONPLATA will work together on activities which identify, promote and finance socioeconomic development projects in their member countries.

The parties will sign specific agreements related to a particular area or project, subject to the respective legislation and approval of their decision-making bodies.

The agreement - of indefinite duration - was signed in the CAF headquarters in Caracas by Acting CAF President & CEO Pedro Sorensen, and the chairman of the Executive Board of FONPLATA, Ambassador Darío Centurión.

The philosophy of CAF has been to form a solid subregional bloc in the Andean area, which can be easily inserted into the continental integration process. Today the Corporation has a new international profile: cooperation with the countries of the River Plate and Mexico’s recent entry as shareholder are clear examples of this.