Contribution to urban development of Guayaquil

(Caracas, September 1, 1998).– A US$56 million loan was today granted to the Republic of Ecuador to finance the second stage of the Guayaquil road program to be executed by the City Government.

The agreement was signed in CAF headquarters in Caracas by Ecuadorian Ambassador in Venezuela Alfonso Barrera, and CAF President & CEO Enrique García, who said the financial operation would improve the urban development of Guayaquil, including the city’s serious traffic problems.

He added that the loan was part of the support which the institution he heads was providing for processes of administrative decentralization and autonomy of national governments, along with provision of infrastructure.

The funds contributed by CAF will be used for construction of tunnels in the El Carmen and Santa Anna hills to connect the north and south of the city, and the 3 km extension of Av. Martha Bucaram.

The Road Program is being implemented by Guayaquil City Government to facilitate access to the most transited areas and improve the saturation levels of the road system, due to the strong increase in the number of vehicles.

Guayaquil is a city which has grown dramatically in recent years to the point where in 1990 its population had practically quadrupled in relation to 1950. The current population is two million.

This growth has generated high urban concentration and the infrastructure is now insufficient for automotive transport, which also affects economic activities.

The Guayaquil Road Program began last year with a US$70 million loan from CAF to finance upgrading of four strategic sections of the city's main road network.

In 1998, CAF approved operations for a total of US$628 million for Ecuador, which have been used to finance productive and physical infrastructure projects in the energy and road sectors, along with urban services of great importance for the country, including the Daule-Peripa Hydroelectric Plant, drinking water systems for Santa Elena, the road network rehabilitation and maintenance program, and the Plan Esperanza social investment program.