US$100 million for Paraíba state highways

(Brazil, April 27, 2010).- Yesterday in the city of João Pessoa, capital of Paraíba state, Brazil, CAF director representative in Brazil Moira Paz Estenssoro, and Paraíba State Governor José Targino Maranhão signed the agreement for the US$100 million loan granted by the development bank to finance the Paraíba State Highway Paving and Restoration Program.

The objective of the financing is to promote the sustainable development of the state by paving and rehabilitating 1,018.8 km of roads and highways, resulting in better integration and connections between the various municipalities.

The total amount of the works is US$154 million of which CAF is financing 64% and Paraíba state the remaining 36% or US$54 million.

The Nuevos Caminos, Highway Paving and Restoration Program has a four-year execution period. After completion the works will produce a real integration of municipal capitals and improve connections between paved roads, which will stimulate commerce and agricultural production in all the region thanks to better interconnectivity between the productive centers. In addition, traffic conditions will improve leading to a fall in the number of accidents.

In general, the people of Paraíba state – which has a very high poverty rate - will see an improvement in their quality of life due to increased access to services and public goods.