CAF approves funds for disasters caused by the rains

(La Paz, February 20, 2005).- Bolivian President Evo Morales and Enrique García, president & CEO of the Andean Development Corporation (CAF), today signed a non-reimbursable technical cooperation agreement for US$200,000 to provide humanitarian aid and respond to demands for reconstruction and prevention works for the disasters caused by the intense rains.

Bolivia is beset by a series of natural disasters following the constant rains, as well as crop losses and damage to road infrastructure. In this situation, the Corporation decided that the donation would be used for food/nutrition, health, water and sanitation, temporary refuges, machinery rental, transport and fuel.

The CAF president also announced that, at the request of the Bolivian government, the multilateral institution would approve by fast track an emergency loan for US$15 million to respond to the disasters caused by the rains.

To make resources immediately available to the Bolivian government, CAF will reallocate funds from other approved operations. As soon as it receives an official request the Corporation will implement the related procedures.

Operations for roads The CAF chief added that after the visit of a CAF technical mission, the first board meeting would approve a US$25-million operation for the Huachacalla-Pisiga road section, the fast route to the ports of Iquique-Chile.

In another development, after the visit by President Evo Morales and President Garcia to Riberalta and Guayaramerín, the CAF chief committed support for the March to the North project, specifically the Guayaramerín-Riberalta section, which requires an investment of US$25 million.

García explained that all the road operations that receive CAF support would be accompanied by social programs covering education, health and basic sanitation, because one of its priorities, besides promoting regional integration, is the social development of the peoples.