CAF approves USD 80.8 million to promote the developments of agricultural exports in southern Peru

CAF, Development Bank of Latin America, approved a loan for USD 80.8 million in favor of the Republic of Peru, to co-finance the second stage of the Majes Siguas project, which will allow for the development of export crops in 38,500 new hectares located in the region of Arequipa, in southern Peru.  

The objective of the loan operation is to partially finance the construction of the Angosturas dam and other hydraulic works of the second stage of the Majes Siguas project. After highlighting Peru's economic growth, Enrique Garcia, CAF's Executive President, stated that the government has been executing diverse infrastructure works to increase the country's productivity and competitiveness. 

Garcia stated, "This operation also consolidates CAF's position as main financier of the irrigation infrastructure sector in Peru". He highlighted that the second stage of the Majes Siguas project is very important for the Institution, as the aim is to promote regional development and contribute to economic growth, as well as to improve the quality of life of the country's southern populations. 

With the execution of this second stage, the surplus waters of the Apurimac river would be used through the construction of diversion, regulation, catchment, conduction, and distribution works to promote the development of regional agriculture aimed at exporting high profitability crops (grapes, avocado, artichoke, asparagus, paprika, and pepper, among others, in the Siguas pampas, in the region of Arequipa.