Peru receives approvals of $172 million for development of transport sector

With an operation for $172 million, the Andean Development Corporation (CAF) approved at its CXIV Board Meeting, finance for the Transport Sector Development Program, which the Peruvian government is executing through the Ministries of Economy and Finance, and Transport and Communications.

CAF Executive President Enrique García said the operation would help the national government to consolidate improvements to the National Road Network. "Giving priority to the maintenance, treatment and upgrading of road infrastructure and transport services in Peru will have a significant effect on the progress of the South American Regional Integration Initiative (IIRSA)."

During the meeting, the chair was taken by Raúl Diez Canseco, first vice president of the Republic and minister of Foreign Trade and Tourism.

The funds destined for the Transport Sector Development Program will be used for the strategic development of transport, in particular upgrading and conserving the national, departmental, rural and port road infrastructure, strengthening the Ministry and supporting sectoral reform.

The national road network comprises major routes and trunk hubs which link departmental capitals, main cities, productive areas, ports and borders, carrying approximately 90% of freight and 8% of passengers in interprovincial transport.

The investments relate to projects on a series of highways and bridges in the 2003-2005 period, including the Rioja-Tarapoto Highway and the rehabilitation of the Chiclayo-Chongoyape Highway.

With the execution of these projects, the government is promoting the participation of the private sector in the development and operation of infrastructure, and the provision of road, maritime and river transport services.

The operation has a maximum term of 12 1/2 years with a grace period of two-and-half years.