Bolivian government signs infrastructure agreements

The Andean Development Corporation (CAF) and the Bolivian government signed two loan agreements for $130 million for road infrastructure and basic sanitation programs.

In the presence of Bolivian President Gonzalo Sánchez de Lozada, and CAF Executive President Enrique García, two agreements for $130 million were signed in the Government Palace to finance the Transport Sector Support Program (PAST) and the Basic Sanitation Program.

Emphasizing the economic and social impact of both projects, García said that the first agreement favored the physical integration and communications backbone of Bolivia, while the second tackled the problems of potable water supply and sanitation service in the cities of Cochabamba, Sucre, Santa Cruz and Potosí.

Progress in road infrastructure is a fundamental tool for eradicating poverty and formulating a development model capable of actively and advantageously integrating the country into the globalized world economy. The environmental sanitation project will enable the Bolivian government to meet the target to half the deficit in access to basic services set by the international community at the Earth Summit,García said.

The CAF head mentioned the speed with which the Corporation acted in this operation. The projects signed today were approved only ten days ago at the last meeting of the CAF Board. This is an example of the backing that the multinational lender offers for the Bolivian government´s efforts to reactivate the economy and improve the quality of life of the population.

Support for the Transport Sector

The Transport Sector Support Program ($100 million) includes nine projects for the improvement, conservation and construction of a series of road sections: Camargo-El Puente, Puente Arce- Puente Sacramento, Tarabuco-Muyupampa, Hornuni-Caxata and Achacachi-Sorata. The plan also covers the building of more than 20 bridges on the Santa Bárbara-Yucumo route to ease vehicle flow. Execution is in the hands of the National Roads Service and the prefectures of the departments that will benefit.

The Andean Development Corporation (CAF) and the Bolivian government signed two loan agreements for $130 million for road infrastructure and basic sanitation programs.

In the presence of Bolivian President Gonzalo Sánchez de Lozada, and CAF Executive President Enrique García, two agreements for $130 million were signed in the Government Palace to finance the Transport Sector Support Program (PAST) and the Basic Sanitation Program.

Emphasizing the economic and social impact of both projects, García said that the first agreement favored the physical integration and communications backbone of Bolivia, while the second tackled the problems of potable water supply and sanitation service in the cities of Cochabamba, Sucre, Santa Cruz and Potosí.

"Progress in road infrastructure is a fundamental tool for eradicating poverty and formulating a development model capable of actively and advantageously integrating the country into the globalized world economy. The environmental sanitation project will enable the Bolivian government to meet the target to half the deficit in access to basic services set by the international community at the Earth Summit," García said.

The CAF head mentioned the speed with which the Corporation acted in this operation. The projects signed today were approved only ten days ago at the last meeting of the CAF Board. This is an example of the backing that the multinational lender offers for the Bolivian government’s efforts to reactivate the economy and improve the quality of life of the population.

Support for the Transport Sector

The Transport Sector Support Program ($100 million) includes nine projects for the improvement, conservation and construction of a series of road sections: Camargo-El Puente, Puente Arce- Puente Sacramento, Tarabuco-Muyupampa, Hornuni-Caxata and Achacachi-Sorata. The plan also covers the building of more than 20 bridges on the Santa Bárbara-Yucumo route to ease vehicle flow. Execution is in the hands of the National Roads Service and the prefectures of the departments that will benefit.

The program is designed to reduce the high rate of fatal accidents and cut connection time between the main cities and neighboring countries, as well as transport costs.

Improved connections with border countries will facilitate the creation of new currently underexploited consumer markets and production centers. The investment should generate around 1,000 skilled and unskilled jobs.

Basic Sanitation

The Basic Sanitation Program includes investments in the following projects: water supply strategic plan for the Cochabamba Valley; rehabilitation of the Ravelo and Cajamarca channels in the city of Sucre; potable water service and sewage system for the city of Santa Cruz de la Sierra; and a sanitation program for Potosí.

All these projects include a natural disaster risk control and prevention program to increase the safety of the systems. Considering the high social impact of this program, the CAF Board approved favorable conditions for the operation granting a maximum term of 15 years with a three-year grace period.

The program is designed to reduce the high rate of fatal accidents and cut connection time between the main cities and neighboring countries, as well as transport costs.

Improved connections with border countries will facilitate the creation of new currently underexploited consumer markets and production centers. The investment should generate around 1,000 skilled and unskilled jobs.

Basic Sanitation

The Basic Sanitation Program includes investments in the following projects: water supply strategic plan for the Cochabamba Valley; rehabilitation of the Ravelo and Cajamarca channels in the city of Sucre; potable water service and sewage system for the city of Santa Cruz de la Sierra; and a sanitation program for Potosí.

All these projects include a natural disaster risk control and prevention program to increase the safety of the systems. Considering the high social impact of this program, the CAF Board approved favorable conditions for the operation granting a maximum term of 15 years with a three-year grace period.