Cochabamba, Santa Cruz and Sucre benefit from CAF loan for road works

(La Paz, September 21, 2007).- The Bolivian government and the Andean Development Corporation will sign, in the city of Santa Cruz on September 21, a loan agreement to finance execution of the “Y of Integration” Road Program" to be executed by Administradora Boliviana de Carreteras (ABC). Bolivian President Evo Morales and CAF President & CEO Enrique García will be present at the signing.

García explained that the objective of the project was to build a third paved road hub between east and west, which would improve integration of the city of Sucre with the rest of the country. "The operation will stimulate the national economy by reducing transport costs, and increase productivity and the standard of living of the communities situated in the area of influence of the highway," he added.

The CAF president said that the specific objectives of the program included "support for the social progress of the communities of Cochabamba, Chuquisaca and Santa Cruz, which have approximately two million inhabitants; creation of an alternative for uniting part of the Bio-Oceanic Corridor by distributing traffic between Cochabamba and Santa Cruz to Brazil on the east, and Peru and Chile on the west; and linking that corridor with the south of Bolivia and with Argentina."

The CAF loan covers 68% of the project. The remaining 32% will be financed by local contributions from the Bolivian State and the departments where the projects will be executed.

The 330-kilometer highway is located on two routes of the Fundamental Road Network, which connect the capitals of Cochabamba, Chuquisaca and Santa Cruz departments. Its route crosses the provinces of Punata, Arani, Mizque and Campero in Cochabamba, and Caballero in Santa Cruz. The road program consist of the subprograms: Paracaya–Mizque–Aiquile, developed in northwest-southeast direction, which starts in the locality of Aiquile and joins the paved Cochabamba-Santa Cruz highway in the locality of Paracaya; and Puente Arce–Aiquile–La Palizada, whch connects the cities of Sucre and Santa Cruz de la Sierra with the East-West Integration Corridor branch.