Bolivia: Financing for roads, electricity transmission, water and basic sanitation

With three loans totaling US$100.2 million, the Andean Development Corporation (CAF) is supporting the execution of the Second Transport Sector Assistance Program (PAST II), the extension of the Caranavi–Trinidad electricity transmission line, and the Project for Water, Basic Sanitation and Support for Social Investment, the president & CEO of the multilateral organization Enrique García said.

The funds provided by PAST II will be used to start various road and bridge building projects around the country, as well as pre-investment road studies (pre-feasibility, feasibility and environmental). The US$25-million loan will cover 70% of the road infrastructure program, while the remaining $10.7 million will come from the Bolivian government.

With this operation, CAF is giving continuity to its financial support for the execution of integration projects under the South American Regional Infrastructure Integration Initiative (IIRSA) which promotes road infrastructure to link all the countries of the region.

Electricity transmission line

CAF is also financing the Caranavi (La Paz)–Trinidad (Beni) Electricity Transmission Line project for US$32.2 million. The Ministry of Services and Public Works is the executing agency for laying 374 kilometers of the 115kv line.

This project is important because the transmission line will connect the localities of Yucumo, San Borja and San Ignacio de Moxos, as well as Trinidad, to the National Interconnected System, eliminating the isolated systems that generate high-cost electricity by diesel.

Reliable energy will be provided 24 hours a day which will result in growth of consumption at low tariffs, opening access to the productive and commercial sectors of Beni department, and facilitating access to the joint ITUBA project.

Water and basic sanitation

A second CAF loan for $43 million is destined to finance the Program for Water, Basic Sanitation and Support for Social Investment, which will increase the coverage and quality of the water and basic sanitation services, facilitate access to reliable water supply sources, and prevent and control landslide risks in La Paz.

The Sanitation Program has three objectives: guarantee the financing of social projects, optimize the access of the population to potable water and basic sanitation services, and improve land management in La Paz with execution of prevention works.

In the framework of its policies and priorities, the Bolivian government has selected six projects for financing with this CAF loan: provision of water to the Cochabamba Valley in the form of financial support for construction of the Misicuni dam, and renovation of the potable water and sewerage system in the old part of the Cochabamba city.

The loan will also be used to install a sewerage system in the eastern sector of Santa Cruz de la Sierra; an aqueduct and irrigation system in El Chaco Seco, Gran Chaco province; design the Master Plan of the aqueduct and sewerage system for Puerto Suárez; along with works to control landslides in La Paz.