CAF approves US$715 million to finance projects in Colombia, Ecuador and Venezuela

The Andean Development Corporation (CAF) today approved operations for US$715 million in favor of Colombia, Ecuador and Venezuela. For Colombia, US$150 million was approved for expansion of the utility Interconexión Eléctrica S.A. E.S.P (ISA), and US$250 million for the Reform Program for Competitive international Trade Presence.

The loan to support the Colombian Reform Program contributes to the efforts by the National Government to execute a multiple action agenda designed to guarantee the materialization of the benefits of the free trade agreement – currently in negotiation - through the adoption of decisions related to improving the country’s trade infrastructure, introducing incentives for private investment, and developing capacities in the area of innovation and technology.

The second operation approved for Colombia for US$150 million represents 52% of the total cost of a project for building, operating and maintaining two new high-tension 500-kV electricity transmission lines for the utility Interconexión Eléctrica S.A. E.S.P. (ISA). The project will reduce the costs associated with additional generation required to guarantee stability in the system and safe exchanges by increasing Colombia’s transmission capacity, permitting generators to dispatch at the lowest marginal costs.

Ecuador received approvals for US$40 million for the innovative Integrated Development of Primary Education project to be executed by the Ministry of Education and Culture for a total cost of US$57 million. CAF president & CEO said that this new operation would improve equity in the region, as part of the institution’s actions to support the building of social and human capital through education.

Venezuela was the third beneficiary country. CAF approved a financial facility in favor of the Venezuelan telecommunications company CANTV for US$275 million, with a partial guarantee from a group of international banks. The risk not covered by the international banks is US$70 million. As Enrique García said, "the telecommunications sector is very important for economic development. It is an area in permanent technological change which requires strong and continuous investment."

With these approvals, CAF continues with its conceptual and financial support for a renewed and integrated development agenda for the region by stimulating initiatives to promote stability, efficiency and social equity.