US$175 million offered for Venezuelan reconstruction

(Caracas, December 21, 1999). – CAF made approximately US$170 million available to the Venezuelan authorities to start the national reconstruction process. The announcement was made by CAF President & CEO Enrique García – who is currently visiting La Paz, Bolivia – in a letter to Venezuelan President Hugo Chavez, in which he also expresses solidarity and support for the Venezuelan people "in view of the unprecedented human and material tragedy, which they are now are grieving for.”

García said in the next few days an emergency loan for US$25 million would be approved for this purpose, and that additional previously approved funds for US$150 million would be redirected to execute priority projects arising from the emergency. He added that – like the national authorities – CAF considers it extremely important for these reconstruction projects to be executed under criteria of sustainability, which includes economic, social, environmental and institutional considerations.

In view of the state of emergency affecting Venezuela due to the severe landslides and flooding which occurred last week, García issued instructions for immediate disbursement of US$15 million – in coordination with the competent authority – to initiate the works of road and urban reconstruction, rehabilitation of water and other social infrastructure works in the areas most affected by the natural tragedy.

Describing the specific support actions which CAF is taking, the CAF president said, "after relieving the initial shock and pain, the best we can do for the country is to help it tackle the task of reconstruction of the devastated areas. In this respect, CAF will do all it can to convert this objective into reality in the shortest possible time."

Finally, he said that a high-level CAF executive was working in the UN coordination team and through this mechanism the Corporation has granted non-reimbursable funds for acquisition of emergency inputs and financing of a preliminary evaluation of the main damage suffered by the basic infrastructure as a result of the tragedy.