Loan agreement for US$8 million signed with Peruvian government to finance feasibility studies for infrastructure works in border region with Ecuador

(Lima, January 2000).– CAF signed a loan agreement with the Peruvian government for US$8 million for feasibility studies for up to 19 projects related to investment in infrastructure in the border region with Ecuador. The projects cover improvements and/or construction of works for roads and bridges, Iquitos airport and port, as well as road works and various urban works in different localities.

This important financial support is being granted following the signing of the Act of Peace between Peru and Ecuador on October 26, 1998, following which both countries began actions to stimulate investments in infrastructure in an effort to strengthen integration and develop the border areas, as well as improving of the living conditions of the population of the area. With this first operation in favor of Peru since the peace agreement, CAF is taking the first steps toward achieving the objectives set out in the bilateral agreement.

The pre-investment studies relate to 19 feasibility projects, which cover 1,146 km of roads for upgrading, rehabilitation and/or construction; evaluation of the economic viability of Iquitos port and airport; studies of strategic bridges which are points of border interconnection, subject to economic and technical evaluation to meet the requirement of non-reimbursable technical cooperation for financing construction works.

The development studies cover execution of proportional growth plans for the main border cities in favor of urban development with adequate land planning. It is also planned to execute studies of the National Border Service Centers for the operation of migration, customs, sanitary, police, tourist information and other services with the objective that they offer good quality and timely service and facilities for the benefit of the user population.

CAF financing will cover 65% of the cost of the study and the Peruvian will contribution 35%. The studies cover investments estimated at US$12 million, which will be disbursed in accordance with the accompanying timetable during an estimated execution period of 12 months.

CAF Representative Office in Peru