Two loans totaling US$500 million signed with Peruvian government for upgrading road infrastructure

(Lima, December 2, 2010).- Minister of Economy and Finance Ismael Benavides Ferreyros, on behalf of the government of Peru, signed two loan agreement with CAF - Latin American development bank - for a total of US$500 million.

The first agreement for US$300 million is destined for the "Investment Program for Upgrading and Rehabilitation of Road Infrastructure," executed by the Ministry of Transport and Communications through Provías Nacional.

The second loan for US$200 million will finance "Pending works on sections 2, 3 and 4 of the Peru-Brazil Inter-Oceanic Road Corridor Project (IIRSA South)," also executed by the Ministry of Transport and Communications through Provías Nacional.

CAF President & CEO Enrique García emphasized the importance of this type of project. "The physical integration of the regions of the country and with neighboring countries through investment in infrastructure and safety on the road network will create better conditions for competitiveness, contributing to the economic and social development of Peru.”

This loan will be used to complete construction of the Peru-Brazil Inter-Oceanic Road Corridor (IIRSA South), over 1,009 kilometers in the sections which connect Cusco, Madre de Dios, and Puno departments.

The loans granted by CAF reflect its confidence in and support for the investment policy implemented by the Peruvian government in the transport infrastructure sector.