US$100 million to strengthen Costa Rican electricity sector

(Caracas, July 9, 2007).- The Andean Development Corporation approved a loan in favor of the Costa Rican Electricity Institute (ICE) for US$100 million as financial support for development and execution of investment plans in the electricity area. ICE is a strategic company whose basic responsibility is to produce hydroelectricity, and provide telecommunications services based on application of advanced technology.

CAF President & CEO Enrique García explained that this approval will help strengthen the non-sovereign public sector as a fundamental factor in the sustainable development of Costa Rica. "With this assistance, CAF is facilitating the goal of ICE of making important and needed investments during the coming years to improve its services in the energy sector, and successfully meet growing demand from users around the country." Demand for electricity services in this Central American country is increasing rapidly, currently at 5% annually, exceeding expectations.

ICE is an independent utility, wholly owned by the Costa Rican state, dedicated to provision of electricity and telecommunications, being the only telecom in the country. During its long record of 50 years it has gained a reputation for excellent and reliable service, maintaining a stable profit flow, backed by application of strategies aimed at improving operational excellence, financial strength and organizational operation by applying the most advanced technology in an effort to raise the quality of life of the population.

Lastly, for Costa Rica, which became a CAF shareholder in March 2002, the Corporation, in the framework of its strategies and policies, has been strengthening and expanding its cooperation. The most important areas of work under the CAF action program in the Central American country are financing sustainable physical infrastructure because of its strategic impact on development; access to non-reimbursable technical cooperation funds destined for sustainable development, competitiveness, institutional strengthening, governance, culture and other priority areas for development; and strengthening of Costa Rica’s relations with other CAF member countries, among other areas of mutual interest.