US$110 million for urban improvement of border cities in Argentina and Paraguay

(Caracas, March 6, 2007).- The Andean Development Corporation (CAF) approved a US$110 million loan for the Republic of Argentina to partially finance the Integration Road Works Program between Argentina and Paraguay, which comprises seven specific projects with the direct participation of the competent road authorities of both countries. The objective is to support the execution, by the Republic of Argentina, of a set of works on access roads to the Encarnación-Posadas International Bridge, rehabilitation of road infrastructure in areas neighboring the cities of Posadas (Argentina) and Encarnación (Paraguay), and urban improvement in both cities. The program is part of the works committed under the Yacyretá Binational treaty.

CAF President & CEO Enrique García explained that "the approval reflects the integrationist dynamic of CAF, which has been deepened by a clearly Latin American vision and agenda, with increasing operational presence in the region and an active and outstanding role in regional integration." García added that in 2006 loans totaling S$580 million were approved in favor Argentina, with most of the institution's support targeted at the energy and transport sectors.

The total cost of the Integration Road Works Program between Argentina and Paraguay is US$182 million. The CAF loan covers 60% of the total, while the remaining 40% will be a local Argentine contribution. In addition to the road works, the seven projects include construction of spaces for sports and recreational activities, six of which are in areas close to Posadas and one in Encarnación, all linked to the Encarnación-Posadas International Bridge which unites the two cities.

The projects to be executed will make a marked contribution to urban improvement, and rationalization and decongestion of vehicle traffic with direct benefits for the people of the two border cities.