US$104 million for Brazilian municipal infrastructure

(Caracas, March 19, 2008).- The Andean Development Corporation approved two loans for the Urban and Environmental Infrastructure Program of Manaus Municipality for US$75 million, and the Development of Municipal Infrastructure and Basic Services Program of Caxias do Sul for US$28.8 million.

These loans, guaranteed by the Republic of Brazil, are part of the strategic objective of working directly with municipal governments of intermediate and smaller cities in Brazil, to support their development and urban infrastructure improvement plans, with a favorable impact on the quality of life of the population.

On the financing granted to Manaus Municipality, CAF President & CEO Enrique García said that "the operation will finance projects to improve the quality of life of 1.6 million inhabitants of this dynamic city, optimizing the road and drainage infrastructure, as well as generating employment and benefits through creation of conditions for implantation of enterprises in a new industrial district."

The program, with a total cost of US$150 million, will be financed 50% by CAF, and 50% by the municipality. The program has road, industrial development, drainage and environmental compensation components.

Promote regional development

The other operation approved on this occasion by the multilateral organization was for the Development of Municipal Infrastructure and Basic Services Program of Caxias do Sul, a municipality located in Rio Grande do Sul state. The program promotes regional development through paving and upgrading of the secondary roads that link the most important municipal capitals in the area with the existing paved trunk roads (federal and state.).

The total cost of US$75.9 million is financed by a CAF participation of US$28.8 million which represents 30% of the total value combined with a local contribution of 62%. The main components of the program are paving approximately 99.2 kilometers of local roads, including works supervision, as well as environmental actions to guarantee the sustainability of the works.

Execution of the two programs, in their respective areas of influence, will increase competitiveness; stimulate agricultural production; strengthen agricultural, agroindustrial and commercial development by improving the transport network and logistics; strengthen tourism; remove the main points of congestion on municipal road systems; improve travel and promote generation of employment.