Operations for $632 million approved for Peru

(Caracas, December 10, 2003).- Peru benefited from approvals totaling $632 million in 2003 to finance road, energy, water, education, community and health service projects, CAF executive president Enrique García told a press conference today. In 2003, the multilateral financial institution approved a record amount of operations for $3.33 billion in favor of its shareholder countries.

García said that the operations approved included $75 million for the Transportadora de Gas del Perú (TGP) – Camisea Transport System project, structured under the A/B modality. The loan contributes to the transport works for the gas produced in the tropical forest area of southern Peru, in Cuzco department. The gas will be sent to the Peruvian coast for distribution in Lima and other cities, and for export to the United States and Mexico.

The total cost of the Camisea project is $1.50 billion including three components: a) the production project to develop a natural gas field; b) the transport project for building gas and oil pipelines; and c) the distribution project which involves the construction of a natural gas distribution network in the cities of Lima and El Callao.

In another major operation, the CAF granted $50 million for construction of a hydroelectric plant with 130 MW operating capacity in the Paucartambo and Huachón river basins in Pasco province northeast of Lima.

In another operation, $228 million was approved for the Program to Support Competitiveness, Governance and Social Investment, which has three independent but complementary components, in line with the Corporation’s aim of achieving an adequate rate of sustainable economic growth, generating employment and reducing poverty.

The Transport Sector Development Program received $172 million for road development in the framework of the South American Regional Integration Initiative (IIRSA).

The regional development bank also approved $9 million for the Institutional and Financial Strengthening Program, $83.8 million for commerce and working capital operations, and $3 million for technical cooperation and the Human Development Fund (Fondeshu).

Approximately $100 million was approved for lines of credit for foreign trade and small- and microenterprises.