CAF finances project to upgrade

To meet the urgent need for an improved water supply in Manabí province, the Andean Development Corporation (CAF) today signed a loan agreement for US$25 million with the Republic of Ecuador in the framework of a global financing program that totals US$277 million.

The agreement was signed on behalf of the Ecuadorian government by the executive director of the Manabí Rehabilitation Center, Jacinto López, and the CAF executive president, Enrique Garcia. The new facility will be used for the rehabilitation project of the Manabí Transfer Canal hydraulic complex which is designed to transfer water from the Daule-Peripa Reservoir in Guayas province for use in Manabí province.

The global financing program is backed by the BNDS of Brazil with a 41% participation, the Spanish government with 10%, the Ecuadorian government with 19% and the CAF with 30%. The Corporation’s participation in the global financing program is US$90 million through three loans: US$15 million approved in 1994, US$50 million approved in March 2001 and the present loan for US$25 million.

The new funds granted today will be used to supply water for domestic, tourist and industrial use to the inhabitants of the Portoviejo River basin, including the towns of Manta and Jipijapa, and for irrigation to the Portoviejo and Chone rivers basins, which will also receive the water for shrimp farming in the estuaries. The project could also increase the volume of flow for river maintenance to improve water quality and conserve the ecosystem.

One of the tunnels of the Manabí Transfer System was seriously damaged during the floods caused by the El Nino phenomenon two years ago, which affected major infrastructure works in Ecuador.

With a population of one million, Manabí province suffers regular shortages of water for human consumption and productive activities because of its lack of adequate natural sources of water. Despite these conditions, the province is one of the country’s development centers with greatest growth potential for crops and shrimp production.