CAF deepens its support for Argentina

(Buenos Aires, May 22, 2008).- In a special audience in the Casa Rosada presidential palace with Argentine President Cristina Fernández de Kirchner, accompanied by Planning Minister Julio De Vido; executive director of Entidad Binacional de Yacyretá, Oscar Thomas; and high-level authorities of the Argentine government; CAF President & CEO Enrique García, and Minister of Economy and Production Carlos Rafael Fernández signed a loan agreement for US$110 million to finance execution of a set of priority projects in the framework of the Program of Integration Road Works between Argentina and Paraguay.

The objective of the program is to support the execution by Argentina of a set of road infrastructure works, some of them in areas which will be directly affected by the projected increase in the level of the reservoir of the Yacyretá Hydroelectric Plant.

"This investment – explained CAF president García – will contribute to urban improvement, and rationalization and decongestion of vehicle traffic in Posadas (Argentina) and Encarnación (Paraguay) for the direct benefit of their populations." He emphasized CAF’s unquestionable commitment to the country, to promotion of its social and economic development, as well as deepening regional integration.

"This program must be seen integrally as part of the Corporation’s integrationist dynamic and as one of the actions that evidences our strategic presence in regional integration, through support for development programs and border integration which promote physical interconnection and improvement of border passes, together with sustainable productive, social and environmental development of the border areas between two of our partner countries," the president of the multilateral financial organization said.

Argentine President Cristina Fernández de Kirchner thanked the Corporation for its constant support for Argentina, its interest in stimulating strategic projects for national development and, especially, the forthcoming opening of the CAF representation office in Argentina headed by María Ángela Holguín.

During his visit to Argentina, the CAF president completed a full agenda of meetings with the ministers of Foreign Affairs, Jorge Taiana; Federal Planning, Public Investment and Services, Julio De Vido; Economy and Production, Carlos Rafael Fernández; president of the Chamber of Deputies, Eduardo Alfredo Fellner; and the president of the Central Bank, Martín Redrado, among others.

In the last three years, CAF has approved loans for investment projects in favor of this South American nation for a total of US$1.40 billion, including the Santa María-Rodríguez Electricity Interconnection project (US$300 million); Integration Road Corridor Program, Phase I (US$150 million); La Picasa Rail Viaduct and Sector Strengthening (US$35 million); Rehabilitation and Paving of the El Pehuenche International Pass (US$80 million); Comahue-Cuyo Electricity Interconnection (US$200 million); Argentina-Paraguay Integration Road Works (US$110 million); Expansion of Energy Transport Capacity in Buenos Aires Province (US$45 million); and US$100 million for the Argentina-Paraguay Rail Integration Works Program, among others.