Electricity interconnection between Brazil and Venezuela makes headway

(Caracas, December 9, 1999).– CAF has now contributed US$81 million to the Venezuela-Brazil Energy Integration Program, following the signing today of a new loan for the State of Roraima for US$26 million, at ten years, for the second section of the project: Electric Power Supply for the State of Roraima. Previously, the Corporation had granted US$55 million for the first stage, consisting of installation of the main electricity interconnection line Santa Elena de Uairén/Boa Vista, now completed.

Execution of section II by Compañía Eletrica de Roraima (CER) consists of installation and assembly of 800 km of 69 Kv electricity subtransmission lines, which will transport power to the localities of Novo Paraíso, Caracaraí, Alto Alegre, Taiano, Vila Brasil, Cantá, Bonfim, Normandía, Mucajaí, and Sucuba, together with the respective subsubstations.

The agreement was signed today in CAF headquarters, Caracas, by Roraima Governor Neudo Campos, and CAF President & CEO Enrique García, who said the operation was part of a broad regional physical infrastructure plan, which CAF is executing – in the areas of roads, energy, telecommunications and river navigation – which is facilitating continental integration, increasing the competitiveness of economies, and improving the living conditions of the people.

"This project – García said – has been conceived with the strategic view of future energy interconnections with the rest of the countries of Latin America. It will also provide power to various localities in industries in Roraima state, facilitating their full participation in progress and regional development by guaranteeing reliable energy generation."

The CAF president added that precisely because of this long-range concept, the project conceives a more efficient use of each country’s energy resources, many of them currently underutilized, in a context of sustainability which integrates economic, social and environmental elements.

For Venezuela, based on its condition as supplier of energy from the Guri complex in the southeast of the country, there are very specific economic advantages: the project opens new markets for placement of its energy surplus, and will develop industrial and trade relations between the two countries.

The CAF loan portfolio in Brazil has a balance of US$430 million, which has been allocated – apart from the electricity interconnection – to financing Highway BR-174 on the border with Venezuela (US$86 million), and construction of the Bolivia/Brazil gas pipeline (US$215 million). Both these works are now completed and in full operation.

CAF is an international financial institution whose shareholders are 12 countries of Latin America and the Caribbean with the mission of supporting sustainable development and regional integration.