CAF approves US$100 million loan for Bogotá

A loan for US$100 million with a term of ten years and three years of grace was approved today by the Andean Development Corporation (CAF) for the Bogotá City Government to finance the city’s Road Plan and Education Program.

The executive president of the CAF, Enrique García, said the operation is in line with the CAF objectives of supporting the modernization of cities - in this case urban transport – and contributing to civic consciousness.

The Road Plan and Education Program comes under the Multi-Sectoral Program for Urban Mass Transport and Social Education Projects, which forms part of the contracting of external public debt operations up to US$218 million with multilateral banks to guarantee completion of the 2001-2004 Investment Plan.

In the area of transport, the Program aims to modernize and improve the efficiency of the integrated public transport system and vehicle traffic in general; reduce environmental pollution; generate employment and income through the execution of infrastructure projects; improve the living conditions of the people of Bogotá and increase the productivity and competitiveness of the Colombian capital.

In the education area, the Program gives continuity to the execution of two specific projects initiated with the Development Plan "For the Bogotá We Want 1998-2001": a District Network of Public Libraries and the building and equipping of education centers in marginal areas.

In the environment and social area, the reduction of traffic congestion and increase of average speed will considerably reduce the toxic emissions of vehicles.

This aspect of the Program is a candidate for appraisal under the guidelines of the Clean Development Mechanism (CDM) of the Kyoto Protocol, which could lead to the sale of carbon certificates if the project is approved.