CAF approves US$ 584.76 million for financing projects in Bolivia, Ecuador, and Venezuela

The Corporación Andina de Fomento (CAF) today approved operations to the value of US$ 584.76 million for Bolivia, Ecuador, and Venezuela.

In the specific case of Bolivia, US$ 180 million were approved for the construction of the last two stretches of the Brazil-Bolivia Integration Road Corridor between Santa Cruz and Puerto Suárez, to be undertaken by the National Roads Service (SNC after its initials in Spanish). This operation falls within the Initiative for Integration of South American Regional Infrastructure (IIRSA), as it is aimed at financing the development and improvement of stretches of road forming part of Bolivia’s integration and development hubs, in view of the fact that this road corridor links up four countries: Bolivia, Brazil, Chile, and Peru.

As for Ecuador, a total of US$ 333 million were approved for executing three projects: US$ 250 million were allocated to financing the Sectorial Program for Strengthening Ecuador’s Electricity Distribution System, which seeks to upgrade the electricity distribution system and to undertake basic infrastructure projects. The agency in charge of carrying out the investments in the electricity sector will be the Ministry of Energy and Mines, and the Ministry of Economy and Finance will be responsible for undertaking the investments in basic infrastructure.

In addition, two road infrastructure projects in Cuenca and Quito were approved for Ecuador. The first loan, for US$ 42 million, is in support of the Cuenca Municipality’s Road and Urban Development Program and is CAF’s first contribution to this city. With these funds, CAF is collaborating with the Ecuadorian government’s efforts to execute the new “Neighborhood for Better Living” project, which seeks to optimize socioeconomic conditions in Cuenca by improving the quality of the environment and town planning, the urban and rural road systems, and accessibility to community, cultural, educational, health, and social sectors.

The other operation approved for Ecuador was a US$ 41 million loan for financing the Second Road Program for Quito Municipality, to be undertaken by the Municipality of Quito Metropolitan District (MDMQ), through Empresa Metropolitana de Obras Públicas de Quito (EMOP-Q). This project consists of executing supplementary works for the proper functioning of the city’s Transport Corridors, a Program for providing Access to Impoverished Urban Areas (253 in all), and the conducting of technical studies for two Urban Expressways.

The third beneficiary country was Venezuela. CAF approved a financial facility for US$ 71.76 million in favor of the Caracas Subway’s Operations Investments Program, which completes the three loan agreements for a total of US$ 205 million made available for financing this Program, which is being undertaken by C.A. Metro de Caracas. The loan is for overhauling, revamping, and replacing equipment on the Caracas Subway’s operating lines to bring them up to date technically so as to restore four specific components to their original levels of performance: rolling stock, railway lines, electrical-mechanical equipment, and telecommunications system. Moreover, after 22 years of operations, much of the equipment needs half-life maintenance, which is also included in the Program.

As Enrique García said, “CAF continues with its conceptual and financial support of a renewed development agenda for the region by furthering initiatives that foster overall stability, efficiency, and social equity.”