CAF promotes development of sustainable infrastructure in South America

A significant contribution to the Initiative for the Integration of the South American Regional Infrastructure (IIRSA) was made by the Andean Development Corporation (CAF), with approval today in its CVIII Board Meeting of a US$70-million loan for the Republic of Ecuador to finance the South Road Corridor Project.

The CAF executive president, Enrique García, said this operation is a specific contribution to the development of the IIRSA, whose objective is to implement a strategy to increase the overall competitiveness of the regional economy.

The IIRSA is a mandate agreed by the presidents of South American countries meeting in Brasilia in August 2000 to implement a physical integration program for the region through 12 hubs as defined by the CAF.

Fulfilling its mission to support regional integration and sustainable development, the Corporation has given priority to physical infrastructure programs, especially technical assistance to governments to facilitate the identification of priority projects for national and regional development and provision of financing for their execution.

The South Road Corridor Project, which will be executed by the Ministry of Public Works of Ecuador, consists of the execution of road resurfacing and environmental upgrading works for this IIRSA hub, which the CAF is backing to create a integrated Andean space.

The project also defines a complementary set of actions designed to deal with environmental problems that affect the roads and their natural, economic and social environment, with a view to preventing personal accidents, landslides, sediment flow and possible flooding and destruction of property, among other incidents.

The resurfacing of the corridor will also improve living conditions in its area of influence by reducing transport costs and facilitating access to services, markets and raw materials.

The project extends from the city of Cuenca to the four cardinal points of Ecuador, opening connections with the Pacific South and Amazonia through eight road sections: Méndez-Morona-Puerto Borja Highway; El Salado-Girón-Pasaje; Biblián-Zhud-Cochancay; El Descanso-Paute-Sevilla del Oro; Sevilla del Oro-Guarumales; Cuenca-Azogues-Biblián; Cuenca-Molleturo-Naranjal; and Guarumales-Méndez.