US$164 million for Colombia

(Caracas, December 4, 2007).- The Andean Development Corporation approved three operations for Colombia totaling US$164 million. The funds will be used to finance the Malla Vial (road network) Rehabilitation and Maintenance Program for the national capital; support acquisition of Ecogas by Empresa de Energía de Bogotá (EEB); and joint finance for construction and operation of five plants for processing fruit and African palm oil for Biocastilla S.A.

CAF President & CEO Enrique García said, "These operations which we are financing in Colombia are aimed at continuing support for the development of its companies and improving the quality of life of its inhabitants, through execution of important infrastructure works." He added, "The project with Biocastilla is very attractive for CAF because, in addition to the environmental and socioeconomic impact generated, it promotes participation of the private sector in agroindustrial investment."

The first operation approved covers a long-term loan for the Bogota District Government for US$55 million to partially finance its Malla Vial (Road Network) Rehabilitation and Maintenance Program. The loan is one of the few CAF operations with sub-national entities which, because of the quality of the institution, are granted without guarantee from the Republic.

The program covers construction, upgrading and sustainability of the city’s road and complementary infrastructure, which will substantially improve conditions of mobility with a view to developing a true intermodal transport system for Bogota.

It is also planned to develop the main internal routes of city suburbs, and rural projects to improve the city’s integration with its region. The program also includes enhancing public spaces, and building pedestrian bridges and cycle routes to improve connectivity between all means of transport.

The loan joins two others approved by CAF in favor of Bogota District for US$121 million aimed at upgrading the capital’s mass transport system (Transmilenio), and the Bogota a great school program.

The second loan authorized by CAF in favor of Colombia is for Empresa de Energía de Bogotá (EEB), whose main shareholder is the Capital District (81.5%). The US$100 million loan completes the long-term funds that the company needs to finance its investment program.

EEB has over 100 years' experience in the Colombian energy sector in electricity generation, transmission, distribution and marketing. For last 15 years, the company has also operated the transport, distribution and marketing of natural gas. EEB has an equity interest in other companies in the sector such as Emgesa, Codensa and Gas Natural S.A., and overseas with 40% of the equity of Red de Energía del Perú and the Peruvian Transmantaro Consortium.

Plant for production of biodiesel and other African palm products

An amount of US$9 million was approved in favor of BioCastilla S.A. to finance 70% of a project to build and operate five plants for production of biodiesel and stearinas, oleinas and palm nut, among others.

This project will stimulate the agroindustrial development of El Meta region, generating multiple benefits which include reduced dependence on imported diesel, increased energy self-sufficiency, positive impact on the quality of the environment, and growth of the value chain for the oil palm industry.

BioCastilla S.A. is a company based in Castilla La Nueva municipality in El Meta department, dedicated to primary and secondary processing of palm fruit and its byproducts.