US$1.16 billion for operations in Argentina, Bolivia, Brazil, Colombia, Ecuador, and Peru

(Caracas, October 24, 2006).- The Andean Development Corporation today approved operations totaling US$1.16 billion for Argentina, Bolivia, Brazil, Colombia, Ecuador, and Peru.

CAF President & CEO Enrique García said that these operations were part of the efforts of the multilateral financial organization to support sustainable development and integration in Latin America. "Today’s approvals are all destined to address with innovative projects the needs of these countries in the social, infrastructure, and financial areas along with support for decentralization." He added that "CAF is continuing its conceptual and financial support for a renewed development agenda for the region by stimulating integrated initiatives to promote stability, efficiency and social equity."

In the specific case of Argentina, CAF approved a US$300-million loan to partially finance the Rincón Santa María-Rodríguez Electricity Interconnection Project which will contribute to the stability, security and reliability of the electricity system, as well as strengthening power exchanges with Brazil and Uruguay.

For Bolivia, an operation was approved for US$120 million to partially finance the execution of the South Integration Highway Project - Phase II. The project consists of concluding the paving of the Cotagaita-Tupiza-Villazón road section and the execution of supplementary works for the Potosí-Tarija-Cotagaita Highway Phase I project to upgrade its alignment and address the social needs of the populations located in the area of influence of the works.

As a contribution to the development of Brazilian municipalities, the CAF board approved the Support Program for Municipal Governments (PRAM) allocating US$200 million for its first phase. The program consists of granting long-term loans in local currency to municipalities that meet the eligibility requirements established in the program. The loans, ranging from US$10 million to US$50 million, will be used to execute projects in mainly economic and social infrastructure, and basic services and environment.

The fourth beneficiary country was Colombia. The Corporation approved US$358 million for five operations: US$58.1 million for the Magdalena Department Potable Water and Sewerage Program; US$50 million for the Bogota Plan: a Great School; and three rotating lines of credit for Financiera de Desarrollo Territorial (Findeter), Bancolombia, and Banco de Bogotá, for a total of US$ 250 million.

For Ecuador, approvals totaled US$50 million for the Program for Road Infrastructure for the Quito Mass Transport System which aims to improve the transport conditions of the road network in the Ecuadorian capital.

Lastly, approvals in favor of Peru totaled US$135 million to be provided in two rotating lines of credit for Banco de Crédito del Perú and BBVA Banco Continental. García explained that these operations were part of the Corporation’s efforts to support, through financial institutions, the foreign trade and working capital of companies in low risk sectors with high value added.