Bolivia: approvals for US$496 million in 2004

In the 2004 period, approvals for Bolivia totaled US$496 million, addressing priorities defined by the CAF through support for the most vulnerable population, improvement of productivity and competitiveness, integration infrastructure, structural reform related to fiscal strengthening and qualitative improvement of public expenditure.

One of the most outstanding projects approved during the year was the Highways of the South Integration Project, which received a US$190-million loan. This infrastructure work will favor the integration of various regions in the country, resulting in the economic development and expansion of foreign trade. The project, which is part of the South American Regional Infrastructure Integration Initiative (IIRSA), will link Bolivia with the markets of Mercosur, particularly Argentina.

The project will provide permanent and safe road access to an extensive region of Bolivia; promote greater local and regional activity in the localities served by the roads; consolidate the main south-north transport corridor of the Bolivian road system; provide paved roads for international traffic with Argentina, Brazil, Paraguay and Chile; and improve the competitiveness of products and services produced in the south of the country. The social component will promote productive capacities in sectors directly benefited by the roads.

Another important project is the Program for Fiscal Strengthening and Improvement of Quality of Public Expenditure, for which a US$120-million loan was approved to help reactivate the economy, reduce poverty and achieve fiscal sustainability.

The CAF also approved a US$23-million loan for the utility Interconexión Eléctrica ISA Bolivia SA to partially finance the construction of three transmission lines granted under license by the Bolivian government. This project reflects a synergy between the Bolivian State, international cooperation and private enterprise.

A US$43-million loan was destined for the Program for Water and Basic Sanitation and Support for Social Investment. The program backs the government’s social investment projects in education, health, agricultural development and water resource sectors; increasing the coverage and quality of water and basic sanitation services and facilitating access to a reliable water supply with emphasis on the most vulnerable population, as well as preventing and controlling risks of landslides.

Technical cooperation funds were granted to several public, private and mixed projects, reflecting the versatility of the CAF's actions and its capacity to stimulate projects with economic and social impact, in the framework of strategic alliances with a range of organizations.

In the health area, the project "Building Bridges between the community and health services with focus on gender and interculturality" contributed to reducing maternal-infant mortality by training women in the communities in sexual and reproductive health.

In education, three main projects were executed: 1) the "Integrated education program for Calamarca municipality,” conceived to relieve the social exclusion generated by insufficient access to the formal education system and the high dropout rate; 2) the "Building Bridges" project, designed to reduce high rates of social exclusion and promote social capital; and 3) the diploma course "Psycho-affective development in children in the Pisoton program” aimed at having a positive influence on the formation of children’s personality. The CAF also backed a study on introduction of computers into the Bolivian education system with a view to increasing competitiveness in education.

The entry of new organizations from the Potosi department, such as the OTB Vila Vila, gave continuity to the Integrated Community Projects for exploitation of the “Salar-Lagunas” tourism circuit. The CAF also supported the "Culture for Development: Viacha-Tiwanaku-Lake Titicaca" project, designed to stimulate the economic development of the communities in the area, generate employment, combat poverty, prevent migration and improve the quality of life of the inhabitants of the region.

Other projects that received backing focus on strengthening the competitive environment in Bolivia, integration into the international economy, and promotion of trade, investment and tourism.

The CAF also helped various initiatives with a process of reflection on the Constituent Assembly through the "Development and Strengthening of Democratic Forms in Bolivia" project and seminars on "Challenges of the Constituent Assembly for Bolivia" and "Productive vision of country in the framework of the Constituent Assembly." A debate was stimulated on the role of the media and journalists, offering new spaces for exchange of experiences and opinions, including "National Journalism Seminars."

The CAF supported artistic expressions such as the Festival of American Renaissance and Baroque Music “Misiones of Chiquitos,” Amalgama and the Social Action Program for Culture in Bolivia. Continuity was given to the project to recover cultural designs.

In the framework of the Regional Governance Program, the "Tools for Governance and Consensus-Building" program trained 80 high-level representatives from public national and local organizations, both public and private. The participants were trained in techniques of negotiation, management of strategic relations with the public sector, strategic communication and leadership and persuasion. About 700 natural leaders from around the country graduated from the "Leadership Training for the Transformation Program"; and the "Regional Program of Governance and Political Management" trained 250 people from municipal authorities along with their technical teams.