Record approvals

• US$80 million for strategic border pass between Argentina and Chile.
• US$42 million for "Guayaramerín-Riberalta Integration Highway" project in the northwest region of the Bolivian Amazon basin.
• US$133 million for infrastructure and support projects for Brazilian telecommunications.
• US$60 million for a short-term revolving credit facility to be granted to Empresas Públicas de Medellín of Colombia.
• Two operations for Ecuador: contingent line of credit for US$275-million and a loan for US$200 million for PRAISE II.
• US$211 million for sections 2 and 3 of the Peruvian South Inter-Oceanic Road Corridor.
• For Venezuela US$400 million for the Habitat Program, US$400 million for the Mass Transport Public Investment Program, and US$50 million for a Partial Credit Guarantee for Electricidad de Caracas.

(Caracas, June 28, 2006).- The Andean Development Corporation (CAF) approved operations totaling US$1.8 billion in benefit of Argentina, Bolivia, Brazil, Colombia, Ecuador, Peru and Venezuela, confirming its support for the sustainable development of Latin America.

The president & CEO of the multilateral financial organization, Enrique García, said that "CAF continues its conceptual and financial support for a renewed development agenda for the region, by stimulating initiatives for the integrated promotion of stability, efficiency and social equity." He added "the operations approved today are evidence of the constant presence of CAF in favor of Latin American sustainable development and the innovation that it impresses on the products and services to which its shareholder countries have access."

In the specific the case of Argentina, US$80 million was approved to finance the project for the Rehabilitation and Paving of the El Pehuenche International Pass, which will develop the road infrastructure of this important trans-Andean pass. This border route, in Mendoza province, as well as being an integral part of the bi-oceanic IIRSA corridor, will open an alternative route which will decongest vehicle traffic on the Cristo Redentor route.

For Bolivia, an operation for US$42 million was approved for the project Guayaramerín-Riberalta Integration Highway, in the northwest region of the Bolivian Amazon basin, which is one on the first important works in the Integration to the North Program promoted by the Bolivian government.

Brazil was the third country to benefit, with two loan operations approved: one for US$10 million for Empresa Brasileira de Telecomunicações S.A. and another for US$32.6 million to partially finance the Regional Integration Program-Phase I in Santa Catarina state.

The multilateral financial institution also approved US$60 million for Colombia through an uncommitted revolving line of credit, in favor of Empresas Públicas de Medellín (EPM), to provide short-term finance for routine company operations. With the establishment of the short-term revolving credit facility, CAF can respond quickly and opportunely to the short-term financing needs of this important Colombian company.

In the case of Ecuador, approvals totaled US$475 million for two operations: a US$275-million contingent line of credit, and a loan for the Second Social Investment Assurance Program (PRAISE II), both to be executed by the Ecuadorian Ministry of Economy and Finance.

Peru received total approvals of US$211 million: two Partial Credit Guarantees to partially guarantee payment of the obligations of the Republic to the concession companies responsible for the construction of sections 2 and 3 of the South Inter-Oceanic Road Corridor (CVIS). This operation backs an important South American integration infrastructure project and contributes to mitigating the liquidity risk.

Lastly CAF confirmed its position as the main source of financing for Venezuela by approving three loans totaling US$850 billion: US$400 million for the Habitat Program, US$400 million for the Mass Transport Public Investment Program, and US$50 million for a Partial Credit Guarantee for Electricidad de Caracas.