Germany strengthens relations with Latin America

(Caracas, October 17, 2006).- Enrique García, president & CEO of the Andean Development Corporation (CAF), and Georg Clemens Dick, ambassador of the Federal Republic of Germany in Venezuela, today signed in Caracas a Second Financial Cooperation Agreement to formalize the allocation of concessional funds granted to CAF from the German government budget in the framework of Official Development Aid (AOD).

Garcia said "signing this agreement for a total of 30 million euros is one more example of the confidence that developed countries such as Germany have in CAF, based on its high reputation and efficiency in supporting the development of the countries of our region." He added "the resources that will come from this signing will be used for the Renewable Energy and Energy Efficiency Program (RE/EE) which will be administered by CAF, in coordination with the German Development Bank Kreditanstalt für Wiederaufbau (KfW)."

The Official Development Aid (AOD) consists of donations or loans on privileged financial conditions, under the guidelines of the Organization for Economic Cooperation and Development (OECD).

Lastly, Garcia explained that the projects to be financed under the RE/EE will, by their nature, support areas of renewable energy and energy efficiency in eolic, solar, geothermal, biomass, and small-scale hydroelectricity technologies, among others. The financing will go to projects located in CAF member countries in Latin America and the Caribbean.