US$100 million for road infrastructure in Brazil

(Caracas, July 10, 2008).- The Andean Development Corporation approved a US$100-million loan for the Paraíba State “Nuevos Caminos” Highway Paving and Recovery Program with guarantee from the Federal Republic of Brazil. The purpose of the operation is to connect isolated and marginal rural areas with economically more developed areas, with the aim of increasing commercial, social and cultural exchange for the benefit of the poorest levels of the state. The executing agency is the Paraíba State Highway Department.

"This operation takes into account fundamental aspects of the fight against poverty in Brazil. The investments will substantially improve the quality of life of the population of Paraíba, one of the states with highest rates of poverty and inequality," CAF president & CEO Enrique García said.

By expanding access to public services and goods, the interconnection will contribute to the integrated strategy for combating poverty and reducing regional asymmetries being implemented by Paraíba state and the federal government, and improve the quality of life in the state by expanding coverage of basic unsatisfied needs and promoting community involvement in the project’s areas of influence.

With a total cost of US$154.6 million, the CAF loan covers 65% of the total while the remaining 35% is financed from local contributions.

The program provides for rehabilitation of 369 kilometers of roads, and paving of 649.8 kilometers of connecting routes to municipal capitals and neighboring states. The works will improve conditions for socioeconomic development in the area of influence, expand the level of access to health and education services, and increase levels of safety of the beneficiaries, as well as cutting travel time and vehicle operating costs.