US$100 million loan agreement to finance public investment in Ecuador

The Andean Development Corporation (CAF) and the Republic of Ecuador today signed a loan agreement for US$100 million. The operation provides partial finance for the 2002 Multi-Sectoral Public Investment Program being put through by the government of that country.

In a ceremony at the CAF headquarters in Caracas, the agreement was signed by the CAF executive vice-president, Luis Enrique Berrizbeitia, and Ecuador’s commercial attaché in Venezuela, Ramiro Dávila.

Berrizbeitia said the multilateral lender had made a positive evaluation of the program whose fundamental objective is to support the Minimum Economic Agenda. The Ecuadorian government is currently implementing this program as part of a sustainable strategy for the country’s integrated economic development over the next few years.

To achieve economic development, a set of infrastructure projects are planned for different sectors of the economy aimed at improving Ecuador's productivity and competitiveness in the global economy. In this context, the CAF official said the loan would be used to finance infrastructure works around the country in several economic sectors, giving priority to transport, education, health, social welfare, as well as a drinking water and sanitation.

The program is to be executed by the Ministry of Economy and Finance through the Office of the Under Secretary of Economy. The total cost is estimated at US$155 million of which 64% will be financed by the CAF and the rest by the Ecuadorian National Treasury.