Spain and CAF strengthen alliance to promote sustainable infrastructure in Latin America

Caracas, May 29, 2006).- To strengthen its alliance with Spain aimed at promoting more and better infrastructure in Latin American countries, CAF President & CEO Enrique García visited Madrid and held important meetings with high-level representatives in the public, private and academics sectors. The activities included a meeting with Pedro Solbes, second vice president and minister of Economy and Finance, to review the Corporation’s agenda in Spain; Magdalena Álvarez, Development Minister; Angel Martín Acebes, ICEX vice president; Miguel Angel Feito, president of the CEDDET Foundation; and the board of the Association of Road, Canal and Port Engineers.

The CAF president was the special guest of the Infrastructure and Services Forum held in the Madrid Association of Road, Canal and Port Engineers, where he spoke on the challenges of Latin America and CAF's role in financing infrastructure, especially the development of the trans-South American network.

Dissemination of Spain's successful experience in infrastructure development The infrastructure sector has been one of the fundamental bases of Spain’s economic and social development in the last 20 years. Spain has invested a large amount of resources in its infrastructure through innovative financing schemes which have modernized its logistical platform and positioned its transport system in the top ranking of project construction, finance and management in Europe and the world.

Spain has recently become a world benchmark in infrastructure management and financing, mainly based on a mixed scheme of public-private cooperation. According to specialized publications on infrastructure, seven of the world’s top 10 public-works concession companies are Spanish.

For these reasons, CAF believes it is useful to find out more about the Spanish experience and establish a special alliance with the leaders of this transformation with a view to familiarizing Latin American countries with its essential characteristics and implementation strategies.

During the CAF delegation’s visit to Madrid, García and the CAF vice presidents of the public and private infrastructure area participated in the Infrastructure and Services Forum held by the Association of Road, Canal and Port Engineers, and gave two special presentations in the Master’s on Infrastructure Project Management and Financing in the Madrid Polytechnic University, which offers courses to executives and directors of construction, concession and engineering companies, the public administration, and audit firms.

Specific actions and signing of cooperation agreements To accompany the strategy of dissemination of the successful Spanish models and strategies in Latin America, CAF signed agreements with the leading institutions involved in infrastructure in Spain with a view to strengthening the strategic planning of national infrastructures and road conservation, the development of urban mobility observatories, the trans-South American infrastructure network, and infrastructure financing and management with mixed formulas; and improving the quality of port services, and airport modernization.

With the Ministry of Development, CAF signed a cooperation agreement to strengthen the planning systems for strategic transport infrastructure, and improve the road conservation systems of Latin American infrastructure ministries.

With the Foreign Trade Institute, ICEX, a cooperation agreement was signed for joint work by CAF and Spain to promote the most outstanding cases and methods from the successful Spanish experience in infrastructure development through publications and distance learning, and to increase the presence of Spanish construction, engineering and concession companies in the region.

A general cooperation agreement was signed with Miguel Angel Feito, director of CEDDET, the Foundation Center for Distance Studies for Economic and Technological Development. The agreement fosters cooperation between the two institutions for the production of distance courses for Latin American countries to make known the Spanish experience and the best practices developed in Latin American countries in key areas of infrastructure management and financing.

A general cooperation agreement was signed with the Madrid Association of Road, Canal and Port Engineers to identify and disseminate the best practices in infrastructure management, technology application, and supervision of major works.

Lastly, and more general in scope, CAF and the Spanish International Cooperation Agency (AECI) signed a memorandum of understanding for joint activities in favor of the less favored population of the Andean countries. The agreement centers on contributing to poverty reduction by promoting integrated development programs and projects designed to strengthen capacities and opportunities in low-income communities in the CAF member countries. The two organizations defined the following areas of common interest: heritage and culture; educational, cultural and scientific development; technological development; tourism; productive community management and public services; and governance and institutional strengthening.