Agreement signed with OAS for projects in border areas

(Medellín, June 3, 2008).- CAF President & CEO Enrique García and Secretary General of the Organization of American States (OAS) José Miguel Insulza today signed an agreement to work together to identify and execute high-impact projects for sustainable development, regional integration and bilateral and multilateral cooperation in the border areas of CAF shareholder countries. The signing took place during the 38th OAS General Assembly in Medellín.

The CAF president said that "with implementation of this agreement, the two organizations aim to contribute to strengthening cooperation, dialogue and mutual confidence in the border regions of Latin America."

For the OAS, the agreement will provide the necessary financing for its confidence building initiatives and other activities on the border between Colombia and Ecuador.

Projects under the agreement signed today will be executed through the Border Cooperation and Integration Fund (COPIF), set up some months ago by CAF with initial funds of US$4 million, which will be gradually increased with funds from the Corporation and other institutions or countries, under agreements signed with the multilateral financial organization, to reach a final total of some US$25 million.

COPIF finances and promotes actions under the CAF Border Development and Integration Support Program (PADIF), especially support for the design and start up of Binational Border Development and Integration Plans between Argentina and Bolivia, and Colombia and Peru, and the strengthening of physical infrastructure and social development projects between Colombia and Venezuela, and on the border between Bolivia and Peru. COPIF will continue to stimulate development works in the region between Ecuador and Peru, and in Colombia the program of the Vice Presidency of the Republic which identifies and executes important social infrastructure projects in border municipalities.

Thanks to PADIF, subregional border integration programs are under way between Andean Community member countries, while in Mercosur work has begun on defining the Border Areas Bilingual Education Program, which is similar to that currently in operation on the border between Brazil and Colombia.