Germany forges closer links with Latin America

(Caracas, May 17, 2006). - Enrique Garcia, president & CEO of the Andean Development Corporation (CAF), and Jürgen Steinkrüger, commercial attaché of the embassy of the Federal Republic of Germany in Venezuela, today signed in Caracas a Financial Cooperation Agreement, whose purpose is to formalize the allocation of concessional funds granted to CAF, under the German government budget in the framework of Official Development Aid (ODA).

Garcia said that "signing this agreement for 40 million euros is another example of the confidence that the developed countries, such as Germany, deposit in CAF, based on its high reputation and efficiency in supporting the development of the countries of our region." He added that "the funds that will emerge from this signing will be destined to the Renewable Energy and Energy Efficiency Program (RE/EE) which will be managed by CAF, in coordination with the German Development Bank Kreditanstalt für Wiederaufbau (KfW)."

Official Development Aid (ODA) consists of donations or loans on privileged financial terms under the guidelines of the Organization for Economic Cooperation and Development (OECD).

Lastly, García explained that the projects to be financed under RE/EE must by their nature support areas of renewable energy and energy efficiency in the energy technology sectors of eolic, solar, geothermal, biomass, small-scale hydroelectric, among others. The financing will be granted to Latin American and Caribbean countries.