During his official visit to Venezuela President Tabaré Vázquez visits CAF

(Caracas, March 15, 2006).- During his official visit to Venezuela, Tabaré Vázquez, president of the Republic of Uruguay, met with Enrique Garcia, President & CEO of the Andean Development Corporation (CAF), in the headquarters of the multilateral organization in Caracas. The members of the Uruguayan delegation analyzed aspects of the country's participation in the institution with the CAF work team, as well as issues of mutual interest for regional development.

After the meeting, García said: "Uruguay is an important CAF partner so the finance granted by the Corporation in the five years of membership has permitted the country to make headway with its internal and external integration plans, determining factor for improving its competitiveness indexes." He added that there was great interest and a strong commitment by both parties in favor of the physical and financial execution of major integration infrastructure projects with impact on development and social inclusion in Uruguay and South America.

The visit of President Tabaré Vázquez took place at a significant time for the development of the institution in the context of the renewed integrationist efforts in which the decision was taken to amend the CAF Establishing Agreement to offer the existing 12 non-Andean shareholder countries, and other countries of Latin America and Caribbean, the possibility of becoming full members, with the same rights and obligations as the current Andean partners. Garcia said: "I am convinced that Uruguay, under the leadership of President Tabaré Vázquez, is being called on to play a role of first order in the process of strengthening the institution as a financial instrument for Latin American integration, assuming a leading role in the South American sphere based on an Agenda that originated in the region itself."

Uruguayan presence in CAF Uruguay became a CAF shareholder in December 2001 opening access to CAF instruments and finance to promote national development, cooperate with the country’s economic participation, and raise competitiveness levels, all in a framework of inclusion and social equity.

Uruguayan participation as a CAF partner has represented a significant advance and stimulus for the regional integration process promoted by the Corporation through the identification and financing of regional integration infrastructure projects, while strengthening CAF’s coordinating role in the integration process which the institution is successfully promoting between the two South American subregional blocs: the Andean Community and Mercosur.

The most important operations approved by CAF in favor of Uruguay include the Phase I Road Infrastructure Program for US$25 million and Phase II for US$70 million, the latter divided into US$50 million as direct loan, and US$20 million as partial guarantee of bond issues to supplement the required financing. The main objective of the two programs is to modernize and adapt the national highway system to facilitate Uruguayan integration with the other Mercosur countries, including various priority projects in the South American Regional Infrastructure Integration Initiative (IIRSA). Uruguay has a privileged geographical location which facilitates its active participation in the IIRSA.

In addition to support for financing of integration infrastructure, CAF will participate in a risk capital fund for medium-sized exporting companies, support microfinance institutions, and provide financial advice to Administradora de Ferrocarriles del Estado (AFE) (Uruguayan National Railways) related to the bidding process for a public-private partnership (PPP) contract to upgrade the country's rail system.