Finance to upgrade crucial roads in Bolivia

Loans for a total of US$54.2 million were approved for Bolivia to upgrade and pave four sections of Bolivia’s integration and export corridors with the countries of Mercosur, contributing to the development of the Andean Trunk Highway Network System.

CAF – international financial institution with headquarters in Caracas – has the mission of supporting the sustainable development of its shareholder countries and regional integration. It is formed by the five nations of the Andean Community, along with Brazil, Chile, Mexico and Trinidad and Tobago.

Support for integration CAF President & CEO Enrique García emphasized the importance of these highways. He said the institution he heads had been developing an extensive plan to support regional integration processes by financing projects related to physical infrastructure, provision of services and cross-border cooperation "with the objective of removing obstacles to growth of exports and creating an expanded economic space with larger and more competitive markets."

Bolivian foreign trade and export have been growing since the entry into force of the zero tariff inside the Andean Community, with exports increasing from US$17 million in 1995 to US$196 million in 1994.

The objective of the upgrading and modernization of the road corridors is to integrate the productive areas of the country, feed the trunk network, connect national transport networks with the international system, and transform them into vehicles for integration between the internal regions and with external markets.

The projects The following projects will be financed by CAF and executed by the Bolivian National Road Service (SNC).

Yotaú-San Pablo highway A US$16.9 million loan to pave the Yotaú-San Pablo section, between the cities of Santa Cruz and Trinidad, Santa Cruz department in eastern Bolivia.

San Pablo-Casarabe highway The second loan for US$13.1 million is for paving the San Pablo-Casarabe section in Beni department.

La Mamora-Desemboque and  Yamparaez-Tarabuco highway CAF also approved US$24.2 million to upgrade and pave this highway between the cities of Tarjia and Bermejo, as well as paving the Yamparaez-Tarabuco highway located in Chuquisaca.

All these loans are part of the objectives of improving transport conditions of the eastern and southern regions of Bolivia with the rest of the country, and between the cities of Santa Cruz de la Sierra and Trinidad in Beni department; at the same time as raising the level of service and cutting the costs of cargo and passenger transport along the export corridor from eastern Bolivia to Argentina and the other countries of Mercosur.

On the environmental impact, the projects also include execution of an environmental and social management plan to guarantee their sustainability in the long term. The plan includes a program to preserve the cultures of the Guayara, Ignaciana and Trinitaria and other ethnic groups which inhabit the region.