US$100 million loan granted to Metro de Caracas

A US$100 million loan was today granted to the Republic of Venezuela to finance operating investments for overhaul of equipment and systems of Metro de Caracas, including rolling stock, escalators, ticket vending machines and the Metrobus, which have reached half their useful life.

The agreement was signed today in CAF headquarters in Caracas by CAF President Enrique García, director general of the Ministry of Finance Wilmer Pérez, and the president of CA Metro de Caracas (CAMETRO), José González Lander.

The loan will finance acquisition of rolling stock for Line 1 (Catia-Petare) and Line 2 (El Silencio-Caricuao) to replace deteriorated or obsolescent parts, and adaptation of automatic ticket machines with reading modules for tickets and intelligent cards.

CAF is an international financial organization whose mission is to support the sustainable development of its shareholder countries and regional integration. Its members are Bolivia, Colombia, Ecuador, Peru and Venezuela , along with Brazil, Chile, Jamaica, Mexico, Paraguay, and Trinidad and Tobago.

Support for a vital service CAF President & CEO Enrique García said the loan was important because it was part of the Corporation’s strategic policies for supporting infrastructure projects, especially roads and transport, energy and telecommunications.

He said the Metro was vital for the daily transport of millions of residents of Caracas from the outermost suburbs to their centers of work, and has a fundamental impact on the increase of productivity.

The cost of the Metro overhaul program is US$174.5 million, to be executed over the next four years (1997-2000); of which CAF contributes 57% and CAMETRO has made an initial investment of 3% from its own funds.

To support this basic transport service, the Corporation has granted four loans for a total of US$192 million: the first in 1995 for US$59 million for acquisition of wagons for Line 3 (Plaza Venezuela-El Valle); in February this year, US$30 million to conclude the civil works of Line 3 which serves the southeast of Caracas; and later US$3 million also for civil works on this line.