Record operations for $622 million approved for Bolivia

During 2003, the CAF approved operations totaling $622 million for Bolivia, the highest figure in its history, said Executive President Enrique García, after announcing that a record amount of $3.33 billion was approved during the year for the benefit of its shareholder countries.

García said that the operations approved for Bolivia provide comprehensive support for the objectives of economic stabilization, improvements in productivity and competitiveness, development of economic and social infrastructure, as well as institutional strengthening to reduce poverty levels.

In this context, an important approval was the $124-million loan for the Bolivian Economic Program, which channeled funds into the structural reforms under way in the country, previously agreed with the government. These reforms include institutional strengthening of the national tax system and the Ministry of Economic Development, and support for productive and financial sectors in relation to borrowing, as well as the assignment of powers in the financial supervision and regulation agencies.

A $100-million loan was granted for the transport sector to develop, improve and conserve the Bolivian road infrastructure. The program aims to incorporate some of the regions with productive potential into the national economy by adopting measures for cross-border physical integration, facilitating creation of new markets, and reducing the isolation of certain areas of the country.

A $75-million loan was granted for the Competitive Strengthening of the Productive and Financial Sectors, which contributes to the reactivation of the productive sector through the capital and financial strengthening of companies, and actions to improve their conditions and competitive profile.

The CAF also approved a $55-million operation to finance the Peri-urban and Rural Infrastructure, Gas and Social Protection Program, which is an emergency mechanism designed to have an immediate effect through the execution of projects with a high impact on the generation of jobs and income in regions with high-risk peri-urban and rural populations, especially El Alto and La Paz. Projects are favored that encourage strategic alliances between government, companies and organized civil society, improving the living conditions of marginal sectors.

Two other loans - one for $30 million for the Basic Sanitation Investment Program, and another for $25 million for the National Emergency Employment Plan - were conceived to complete projects that provide solutions for the problems of water supply and sanitation services in Bolivia’s largest cities, and contribute to the creation of temporary mass employment in urban and rural areas through increased public investment.

In other operations, loans were approved for working capital and foreign trade for almost $70 million. The lines of credit opened for a number of Bolivian financial institutions were channeled into the productive sector and micro enterprises, activities that have a great impact on the national economy, including $9 million for micro finance institutions. In addition to the $6-million allocation to finance the Multilateral Debt Reduction Program in the framework of the HIPC (Heavily Indebted Poor Countries), the technical cooperation operations approved for Bolivia during the year totaled $1.1 million. These operations benefited activities in the public and private sectors in the areas of governance, competitiveness, sustainable development, integration, and cultural and community development. The activities were financed with funds from the Technical Assistance Fund; Human Development Fund, Fondeshu; the Special Fund for Bolivia and the Spanish Cooperation Fund.

In the governance area, the Program for Institutional Strengthening and Training in Decentralization and Citizen Participation successfully trained leaders and their support groups at national level, assisting the strengthening of public institutions. The Andean Competitiveness Program (PAC) together with the Bolivian Productivity and Competitiveness Unit backed projects to promote four clusters: grapes, wines and singanis; timber; leather manufactures; and textiles and clothing. The CAF has also been a partner in the project to set up the Bolivian company incubator.

In the program with the Wharton School of the University of Pennsylvania, a company from the wines and singanis cluster was advised on placement of its products on the US market. Funds from Fondeshu were used to finance projects related to microfinance institutions, as well as crafts, training and tourism, in an effort to improve the quality of life in poor communities. In the microfinance area, the lines of credit of three of the seven clients in the country were increased, and relations with government institutions were deepened to review the performance of the financial system and trends in microfinance.

In the craft area, the INBOPIA Institute began the "Preparing to Export" project, whose aim is to develop management capacity and improve craft production in urban-rural communities in Bolivia. To promote tourism and community development, support was given to the Salar de Uyuni Access project and the Integrated Community Project to develop tourism in Villa Alota and improve living conditions. Assistance was also given to the Pisotón project whose objective is to train facilitators in the integrated development of families and children from low-income sectors.