US$100 million loan granted to Ecuador

A US$100 million loan, at ten years with three years of grace, was granted last night to the Republic of Ecuador to finance the Global Program for Rehabilitation and Maintenance of the Road Network, whose executing agency is the Ministry of Public Works.

The agreement was signed in CAF headquarters in Caracas by CAF President & CEO Enrique García, and Ecuadorian Minister of Public Works Homero Torres, in the presence of Foreign Trade Minister Benigno Sotomayor.

García said the loan was part of the CAF objectives of supporting provision of productive and physical infrastructure in its shareholder countries – especially in the areas of roads, energy and communications – and backs Ecuador’s ongoing efforts to counteract the effects of the El Niño phenomenon which has damaged several important highways.

He added that damage identification studies have detected the need to review the design of the worst affected roads, before starting their construction in order to guarantee longer useful life.

In addition to the rehabilitation and maintenance components, the program includes aspects of institutional strengthening, such as developing an adequate long-term road maintenance policy and a review of the weight and measures control program.

Infrastructure and economic development The loan granted today to Ecuador is an important contribution which will have a positive impact on reactivation of the country's economy, taking into consideration that the road sector, together with ports, are vital for national development because they connect all regions to the centers of production and consumption, and open the way for integration with neighboring countries.

In this respect, the reconditioning of the roads will raise the level of services and improve management of the national road network, reducing the impact of production and transport costs on the market prices paid by the final consumer.

CAF is an international financial institution whose mission is to support regional integration and the sustainable development of its member countries. It is formed by the five members of the Andean Community: Bolivia, Colombia, Ecuador, Peru and Venezuela, together with Brazil, Chile, Jamaica, Mexico, Panama, Paraguay and Trinidad and Tobago which are members of other integration schemes such as Mercosur, FTA and CARICOM.