Finance approved to consolidate road infrastructure and competitiveness agenda in Ecuador

To support the execution of investments aimed at consolidating a state network in Ecuador and give an important stimulus to the Competitiveness Program, the CXV Board Meeting of the Andean Development Corporation (CAF) today approved a financial operation for $259.7 million, the largest that this multilateral institution has ever approved for this country.

CAF Executive President Enrique García said that these funds were destined for the Transport Sectoral Program, which forms part of the Master Road Plan being implemented by the Ecuadorian government. The Plan has important components related to integration and promotion of competitiveness. Its objectives include the execution of over 1,000 kilometers of roads in 16 projects, which will connect development poles in Ecuador with Colombia, Brazil and Peru.

The Board approved total operations for $788 million; in addition the Board approved finance for Bolivia ($75 million), Peru ($353 million) and Venezuela ($100 million).

The new funds will provide partial finance for the construction, rehabilitation and paving of part of the national road network; road safety equipment; and improvement and expansion of the operating conditions of the state network to meet the needs of population growth, among other activities.

García said that seven of the 16 projects form part of the South American Regional Infrastructure Integration Initiative (IIRSA), whose objective is to create a physical infrastructure integration network in the region.

The financing includes support for the Ecuadorian Competitiveness Program whose execution will facilitate Ecuador´s integration into the world economy by increasing exports and improving productivity, as well as generating employment and improving the quality of life of its inhabitants.

These objectives will be achieved by strengthening institutions, fostering productivity and business development, promoting product clusters with value added and export potential, stimulating free competition, expanding access to information technology, and improving the regulation and enforcement of environmental protection legislation.