US$100 million for road infrastructure in Uruguay

(Caracas, August 18, 2009).- CAF today approved US$100 million for the National Development Corporation (CND) with guarantee from the Republic of Uruguay, to partially finance the Public Investment in Road Infrastructure Program. The executing agency will be the Uruguay Road Corporation (CVU), a subsidiary of CND.

CAF President & CEO Enrique Garc�a said, "with this approval, CAF supports the short-term public investment plans defined by the government of Uruguay, partner of the Corporation, with the aim of improving the quality of service to users of the national road infrastructure."

"The program - Garc�a added - reinforces the Corporation's support for the country's road sector by supplementing other credit initiatives granted in the past." In the last five years CAF has successfully financed three programs to support the road sector, with CVU as the executing agency. On this occasion the approved program finances various priority projects designed to improve the network by means of extension of roads with high traffic density, and rehabilitation and maintenance of the road network in the interior of the country.

"Moreover, the operation reaffirms the institution's anti-cyclical role by supporting the short-term public investment plans defined by the Executive, because of their impact as instrument to stimulate economic activity in the framework of its anti-crisis strategy," García said.

The CAF loan is equivalent to 71% of the estimated total cost of the project of US$141.7 million. The remaining balance will be financed from funds contributed by the other party.

The Program consists of reconstruction or rehabilitation, maintenance and construction works. Specifically the loan finances the reconstruction of highways in the primary and secondary network, maintenance works by level of service, road safety tasks, and extension of the second roadway of the Montevideo perimeter ring along with other important roads which connect the capital city.