Non-reimbursable funds for Bolivian private sector

(La Paz, September 24, 2007).- CAF President & CEO Enrique García signed non-reimbursable technical cooperation agreements with various institutions in the Bolivian private sector to support projects in the tourism and productive sectors, improvement of education infrastructure, cultural activity and promotion of business contacts.

"CAF carries out a broad range of work focused on contributing to the sustainable development of its shareholder countries; in this respect we are supporting - with non-reimbursable funds - projects to improve productive capacity, introduce quality systems into the tourism sector, implement infrastructure in the education and cultural area, and strengthen institutions and business in Bolivia," García said.

In the business area, Tahuamanu S.A., leading company in the processing and export of Amazonian (Brazil) nuts, receives a short-term uncommitted revolving line of credit to finance collection, processing and export to international markets where Bolivia is now the most important exporting country for this crop.

In the cultural area, CAF will finance the Technical Training Plan for the staff of the new Bolivian Cinematica Foundation. This project converts the staff of the Cinemateca into a specialized multidisciplinary team capable of efficiently operating the institution when it opens in October this year. The Corporation is also supporting installation of a heating system for the National Symphony Center to improve conditions for the public in winter when the audience drops to 30% due to low temperatures where the symphony orchestra performs.

As part of the CAF Competitiveness Support Program (PAC), non-reimbursable cooperation funds will be granted to the productive sector through the project for Improvement of Productivity in the Dairy Sector in Batalla and Pucarani Municipalities. The project to be executed by the Nuevo Norte Foundation strengthens the dairy cluster of 1,543 producer families in La Paz department by providing technical training in the form of on-site demonstrations and competitions for best practices in irrigation, fodder handling and animal conditions. Based on the quality of their work, all participants win prizes such as seeds for fodder, genetically improved animals, and work materials.

As part of its Hubs with Development strategy, CAF has formed an alliance with Swiss Contact (Swiss private sector organization for development cooperation) to finance the project Management System for Improving Competitiveness in 30 Tourism Organizations in Sucre and Potosí. This project introduces quality and continuous improvement systems into the tourism chain in the two cities, which contain historical and cultural world heritage sites, and implements best organizational practices, follow-up and customer service systems into tourism operations in the area, as part of the PAC.

The Santa Cruz Chamber of Industry, Commerce, Services and Tourism (CAINCO) receives sponsorship for the VIII Economic Forum and the XVII International Business Round, activities that directly promote business contacts for supply and demand of products, goods and services, and establishment of cooperation and/or business association agreements, generating proposals for the country’s growth and development.

Lastly, CAF will support the building of the library of the Bolivian Private University (UPB) in La Paz, whose campus is one of the most modern in the country. This institution will also receive funds for carrying out a Study on Feasibility and Structuring of Securitization of Future Enrolment Flows.