Public sector institutions to receive non-reimbursable funds

(La Paz, August 21, 2008).- In the presence of Bolivian President Evo Morales, CAF President & CEO Enrique García signed seven non-reimbursable cooperation agreements in a ceremony in Quemado presidential palace. The funds will be used to execute projects of national interest which strengthen management of public entities, and to support a research program on phenomenon of migration.

The agreements signed at the ceremony for an approximate amount of US$1 million supplement the non-reimbursable cooperation which CAF has approved this year for Bolivia of US$2.5 million.

The agreements were signed with the ministers of Foreign Affairs, David Choquehuanca; Development Planning, Graciela Toro; Mineral and Metallurgy, Alberto Echazú; Tiquipaya Mayor Evaristo Peñaloza; the president of the Bolivian Road Administration (ABC), Patricia Ballivián; and representatives of the executing agencies.

The CAF will hand over the non-reimbursable funds to the Planning Ministry to finance the projects: Evaluation of Impact of Road Infrastructure on Economic Growth in Bolivia, and Assistance with Structuring New Contracting Schemes and Definition of Scope of Quality Control Service (SCC), to be executed by the Economic and Social Policy Analysis Unit (UDAPE) and ABC, respectively.

The objective of the first project is to provide the country with an analysis of the socioeconomic, productive and environmental impact caused by access to the highways of the Basic Road Network in urban and rural municipalities, in the areas of health, education, income and level of poverty. The cooperation with ABC is collaborate on the structuring of the technical, administrative, financial and legal documents which SCC requires to ensure that turnkey contracts fully meet the needs of the Bolivian state.

Stimulus for environmental conservation "CAF has a serious commitment to the environment and its preservation, which is why it constantly promotes the development and execution of innovative projects which effectively contribute to sustainable development as the best option for the growth and strengthening of Latin America," García said in reference to the large quantity of funds approved for the entity for execution of environmental projects.

In this framework, CAF is financing the project Strengthening the Socio-Environmental Management of Protected Areas in southeast Bolivia, to be executed by the National Protected Areas Service (SERNAP) for the benefit of indigenous peoples and ethnic groups which inhabit the El Patanal area, specifically the “Pantanal de Otuquis Integrated Management Natural Area” National Park.

The Mining Ministry will execute the project Environmental Remediation and Processing of Mining Tailings "San Miguel" for the benefit of the inhabitants of the community of Cantumarca and the municipalities of Tacobamba, Betanzos, Chaqui, Porco and Villa Yocalla, in Potosí department. The tailings are present in the middle of population centers, close to hospitals, children's villages, schools and other places of urban growth, creating a high health risk and serious environmental pollution.

This project covers pre-investment studies and final design for installation and construction of the tailings reprocessing metallurgical plant, training of local human resources in environmental mitigation and remediation technologies, and application of processes with modern technology. The aim is to create the best conditions for public investment by restoring the historical environmental impact left by mining.

Foreign policy, municipal management and academic research The Bolivian foreign ministry will receive funds for its institutional strengthening through the operation Support for the II Meeting of Heads of State for the South American Community of Nations, which aims to enrich the focus on "integral integration" by developing new foreign policy guidelines in the fields of multilateralism, indigenous peoples, cultural diversity, asymmetry, environment and legal aspects.

Tiquipaya municipality benefits with funds for the creation of a tool to make possible equitable distribution of the tax burden, improve the legal security of property and lay the base for urban and regional planning.

Lastly, CAF granted finance to the UMSA Postgraduate Center in Development Science (CIDES) for an international seminar for public and private national and international institutions involved with migration and its effects to provide them with inputs for the design of strategies and policies on migration and remittances.