Record loan granted

(Caracas, July 4, 1994).-- The largest credit approved by CAF in its institutional history was today granted to the Republic of Ecuador for a road integration program whose objective is to upgrade internal communication routes in the border regions with Colombia and Peru.

The loan – for US$131 million with a 12-year term and a five-year grace period – is crucial for optimizing operation of the country's road network, and for giving effective support for transport, commerce and integration.

The agreement was signed in CAF headquarters in Caracas by CAF President & Enrique García and Venezuelan Ambassador in Ecuador Ximena Martínez Pérez.

The program consists of construction or upgrading of selected sections of three priority highway systems: the Marginal Coast, South Panamerican and Esmeraldas/Tumaco/Pasto.

After completion, Ecuador will have a highway system which links its border areas in the northwest with Colombia and in the southwest with Peru, opening up commercial and tourism flows between the three countries.

The Ecuadorian road network is formed by approximately 43,000 km of roads and highways, which are partly paved and partly gravel or dirt surface.

This program – with a cost of US$164 million -- comprises six projects: Las Peñas/Borbón (northwest of Esmeraldas province); Borbón/ Maldonado/ Mataje and Bilsa/San Gregorio/ San José de Chamanga (southwest of Esmeraldas); Pedernales/San José de Chamanga (north of Manabí province); San Mateo/Puerto Cayo (Manabí), and Catatocha/Macará/Puente International (southwest of Loja province).

Some of these projects are part of the Marginal Coastal Highway which connects coastal towns and maritime and agricultural production areas. The highway begins in Mataje on the Colombian border and ends in Huaquillas on the border with Peru. This 1,200 km route is almost completed, except for some sections which will be partly financed by this program.

In relation to the 1,106 km Pan-American Highway, the program will complete the of 91.5 km Catacocha/Macará cross-border section with Peru, which will improve traffic flow on this important Latin American road artery.

These projects will not only contribute to border and regional integration, but also interconnect highly productive areas of agricultural, forest, livestock, agro-industrial, fisheries and tourism development.

The executing body for the project is the Ecuadorian Ministry of Public Works.