Support for Foundation for Agricultural Technological Development of Los Valles program to combat rural poverty in Bolivia

The Andean Development Corporation (CAF) signed an agreement for the administration of third party funds with the Foundation for the Agricultural Technological Development of Los Valles. The agreement covers a $8.4-million fund from the PL 480 program, which is a direct contribution from the CAF to the fight against rural poverty being waged by the Bolivian Poverty Relief Program.

With this operation, the CAF president, Enrique García, said the Corporation is again fulfilling its "catalytic role" of attracting funds from external sources to finance priority projects in the region, in this case Bolivia. This is possible thanks to the multinational lender’s excellent risk rating and financial solvency.

With this agreement, the CAF makes a new product available to its clients, the professional and responsible administration of third-party funds under specific mandate. This is the first operation of its kind with a private foundation, García added.

CAF’s function is limited to two actions: 1) professional administration of funds through fixed-term deposits in recognized institutions and the Corporation’s own regional bonds; and 2) disbursements of funds at the request of the Foundation.

The Foundation for the Agricultural Technological Development of Los Valles (FDTA-Valles) is a non-profit entity set up in the framework of the Bolivian Agricultural Technology System (SBTA) to reduce rural poverty by improving producers’ income and the food security of the population, increasing the competitiveness of the sector and encouraging the sustainable use of natural resources. The FDTA’s area of influence is the valleys of Cochabamba, Tarija, Chuquisaca and Santa Cruz.