US$100 million for Argentina-Paraguay integration.

• The operation joins the US$110 million loan for road infrastructure works granted in the first quarter of 2007.

(Caracas, March 25, 2008).- The Andean Development Corporation approved a US$10 million loan in favor of Argentina to partially finance execution of the Argentina-Paraguay Integration Railway Works Program to be executed by the Yacyretá Binational Entity through agreement with the Sub-Secretariat of Rail Transport of the Nation. The total cost of approximately US$166 million will be funded 60% by CAF and the remaining 40% from local contributions by the Argentine state.

CAF President & CEO Enrique García explained that "this approval reflects the Corporation’s integrationist dynamic, which has been deepening through a Latin American vision and agenda, with an increasing operational presence in the region and an active and outstanding role in regional integration." This loan joins the US$110 million financing granted by CAF in March 2007 for the Roadworks and Urban Improvement Program in areas adjacent to the border cities of Posadas (Argentina) and Encarnación (Paraguay) and access roads to the Encarnación-Posadas International Bridge, he added.

The objective of the new program is to support execution of investment commitments by the Argentine government to replace 29 kilometers of rail infrastructure, which will be affected by the rising level of the Yacyretá reservoir. In addition other investments will be destined to improve the efficiency and operating capacity of the General Urquiza railway in Posadas, and its connection with Encarnación.

Specifically this includes building of a new section of track between Posadas and Parada Leis; and new installations to replace the existing Posadas passenger station and the railway goods yard. These works will facilitate cargo and passenger transport services between the two countries and raise the quality of life of the population.

In line with the timetable agreed by Argentina and Paraguay, the new works must be completed by late 2010 to coincide with the time when the Yacyretá hydroelectricity complex reservoir reaches its design level.