Loan agreement signed for US$75 million

(Caracas, July 15, 2008).- CAF President & CEO Enrique García, and Landys Navarro, president of the company Sistema Hidráulico Yacambú-Quíbor, CA, signed an agreement for a US$75-million loan to the Bolivarian Republic of Venezuela. The funds will go to the Yacambú-Quíbor Water System in the west of the country.

"In recent years - Enrique García said - CAF has strengthened its participation in financing the social sector, for the purpose of creating opportunities and improving the quality of life of the population." "This project will favor the sustainable development of the Yacambú river basin and Valle de Quíbor."

The president of Yacambú Quíbor said that "the critical route of this project is reaching its conclusion. We are making history. The loan which was signed today will speed up meeting targets and bring us closer to the start of filling the reservoir."

The Yacambú-Quíbor Water System exploits the waters of the Yacambú river in favor of the agricultural development of Lara state, in addition to improving the potable water supply of the city of Barquisimeto, capital of this western state.

A total of about US$600 million has been invested in the project, of which CAF has contributed over US$280 million, including the loan signed today, in regulation and diversion works. CAF funds have also been used for activities related to river basin conservation and development of the Quibor Valley, especially preparation of the action plan for the IWRM (Integrated Water Resources Management) program, where - with an integrated and coordinated approach - the actors involved (institutions and communities) make proposals for the sustainable development of the Yacambú-Quíbor territory.

The loan signed today will be used to finance investments in infrastructure (regulation, diversion, supply line and treatment plant) and develop the project’s environmental and social activities.