Board meeting in Caracas approves: US$55.3 million for Daule-Santa Elena water transfer

The CAF Board, in its 87th meeting held today in Caracas, approved the Program of Activities and Budget for 1996, and a US$55.3 million loan for the Republic of Ecuador for construction of the second stage of the Daule-Santa Elena water transfer, located in Guayas province.

The meeting was chaired by Fernando Candía, Bolivian Minister of Finance, and attended by ministers, vice ministers and high-level directors of private and public financial and economic development organizations, representing "A" and "B" series shares. CAF is formed by Bolivia, Colombia, Ecuador, Peru and Venezuela, together with Mexico, Chile and Trinidad and Tobago as extraregional partners, shortly to be joined by Brazil, and 22 private banks from the region.

The loan will be used to finance the second stage of the Santa Elena Water Plan Project (PHASE), whose purpose is to complete the Transfer of the River Daule to the Santa Elena Peninsula. The plan works include installation of the Chongón Dam Pumping Station, construction of the 19 km “Sube y Baja” channel, construction of the reservoir of Cerecita-Playas Tail Canal, repair of the Azúcar reservoir and execution of various environmental protection works.

This infrastructure work, under the responsibility of the River Guayas Basin Development Studies Commission (CEDEGE), will have a high economic impact for Ecuador because it will incorporate 40,000 hectares of land suitable for development of exportable agricultural products, supply drinking water to a population of 750,000 on the Peninsula and two important sectors of Guayaquil, at the same time as meeting the needs of industry, fisheries and tourism in the area.