Signing of Agreements with Bolivia amounting to more than US$42 million

(La Paz, September 1, 2006). - A loan contract for the construction of the Riberalta-Guayaramerín road and two technical cooperation agreements involving non-reimbursable funds for implementing programs under the National Development Plan were signed by CAF’s Executive President, Enrique García, and the President of Bolivia, Evo Morales, at Government Palace.

CAF’s Executive President reiterated the agency’s interest in actively participating in favor of the development of Bolivia’s infrastructure and the strengthening of its institutions and competitiveness in both urban and rural areas.

The first of the contracts is for a CAF loan for the Riberalta-Guayaramerín Road in the North of Bolivia that joins the boarder zones of Bolivia and Brazil. This integration road is Route 8 of the Basic Routes Network and forms part of the Northern Export Corridor that links up the Pacific coasts through the ports of Iquique and Antofagasta. The US$42 million loan contract will finance two components: - The overhauling of the Riberalta-Guayaramerín road, broken down into two stretches: Riberalta-Río Yata (55 kilometers) and Río Yata-Guayaramerín (31 kilometers); and - A feasibility study of the Porvenir-El Choro stretch that joins Guayaramerín up with Cobija in Bolivia’s West-North Corridor.

The first non-reimbursable technical cooperation contract is for the State Purchases Follow-up Program. The purpose of this program is to get productive players, in particular micro and small producers, as well as central government agencies, prefectures, and municipalities to reap the benefits of implementing the “Buy Bolivian” Decree, which seeks to include small producers in contracts entered into by the State. The contract also provides for the setting up of training opportunities and mechanisms so that beneficiaries can respond effectively and efficiently to the demands of this regulation.

The Bolivian government signed a second non-reimbursable technical cooperation contract for the Communities in Action Program, a priority initiative under the National Development Plan that seeks the comprehensive development of a universe of 148 municipalities where 70% of the population are classified as being in extreme poverty. The program has five components that address the following:

1. Community Economic Initiatives that will guarantee the insertion of the communities in the market, strengthening their cultural identity and community economy;
2. Building a Decent Life, which seeks adequate education, food, and access to basic services;
3. Environmental Restoration, which seeks to combat the degradation of the soils and desertification and to restore landscape;
4. Infrastructure and Equipping Communities Socially and Productively, which aims to provide support for the other components of the program; and
5. Strengthening Community Organizations.

The funding for this program will be channeled through the Ministry of Development Planning.

Attending the ceremony were the Minister of Development Planning, Carlos Villegas, the Minister of Production and Micro Enterprises, Celinda Sosa, and the Minister of Public Works, Salvador Ric.