Bolivia signs US$20-million loan for natural emergencies

(La Paz, June 19, 2008).- Development Planning Minister Graciela Toro Ibáñez, and CAF representative in Bolivia José Carrera today signed today a loan agreement for US$20 million to finance the Response to Natural Emergencies Bolivia 2008 Program.

"This loan is very important because it aims to cover the requirements of the affected population, which is why CAF complied with the request for a fast approval," Toro said, emphasizing the backing given by the multilateral organization.

The objective of the program is emergency response and execution of rehabilitation and reconstruction of infrastructure damaged by the natural phenomenon which affected a large part of the country in late 2007 and early 2008, as well as adoption of prevention measures for the physical, natural and social capital of the country.

The loan will also finance disaster prevention, with the objective of facilitating actions to reduce their magnitude in the short term, and in the long term become an element for facilitating the organization, planning and response to future contingencies related to natural emergencies.

The executing agencies are the ministries of Defense, and Development Planning, through the vice ministries of Civil Defense and Cooperation for Integrated Development (VIDECICODI), and Territorial and Environmental Planning (VPTA), respectively.

The operation will be executed nationally in the territories affected by the El Niño and La Niña weather phenomena, in accordance with supreme decrees issued on the emergency situation and their declaration (DS 29425 and DS 29013).

Objectives and components of the program

1. Provide emergency response funds to cover unplanned items which could include purchase or acquisition of medicines, food, shelter and winter clothing for affected populations and other equipment or instruments considered necessary.
2. Make resources available to various sectors for rehabilitation and reconstruction projects. The sectors initially favored are agriculture, water resources and transport.
3. Finance prevention projects understood as activities to prevent and minimize disasters caused by intense rains.
4. Includes funds for productive development projects and for pre-investment and investment activities for irrigation, water and basic sanitation projects presented by beneficiary entities.