US$177 million granted for strategic road infrastructure in Bolivia

(La Paz, February 11, 2011).- In a ceremony in Quemado Palace, with the presence of the president of the Plurinational State of Bolivia, Evo Morales, CAF President & CEO Enrique Garcia and Planning Minister Viviana Caro signed two loan agreements totaling US$177.3 million along with a non-reimbursable cooperation agreement to finance a study for maintenance of the Epizana-Comarapa section. The three operations will be executed by the Bolivian Highway Administration (ABC).

The loan for US$150 million will finance the Transport Sector Program (PST) which covers overall improvement and rehabilitation of critical sections of the country's basic road network, with a view to integrating regions with productive potential into the national economy and the development process.

The Program fosters actions for cross-border physical integration between Bolivia and neighboring countries, facilitating the creation of new consumer markets and production centers. In addition to covering direct labor costs, the funds will be used for pre-investment studies, supervision, inspection and environmental and social costs of the roads in the PST.

The second loan agreement was signed for the second phase of the road project known as "La Y de la Integración" for US$27.3 million. This road will link the cities of Cochabamba, Santa Cruz and Sucre crossing Punata, Arani, Mizque and Campero provinces in Cochabamba department and Caballero in Santa Cruz department. The funds will be invested in executing improvements to the final design of the highway, meeting the demands of beneficiaries and providing better service conditions for development of the area.

Specifically, it is planned to use the funds to finance inspection and supervision services during execution of the works, and to improve the design of the Paracaya-Mizque-Aiquile section with respect to slopes and drainage system and widening the Arani-Punata section to two lanes to optimize serviceability. This loan strengthens CAF support for execution of this important road project. In September 2007 a US$70 million loan was approved for construction of the highway to link east and west and deepen the integration of the city of Sucre with the rest of the country.

Non-reimbursable funds for Cochabamba-Santa Cruz old road

The technical cooperation agreement provides non-reimbursable funds to study rehabilitation of the 131 kilometer Epizana-Comarapa highway and execute the works needed to recover the functionality of the road.

This section is of fundamental importance because it is part of the old highway linking Cochabamba and Santa Cruz departments, which is an alternative route for light and heavy vehicular traffic, and movement of goods between the two departments and nationally, especially in the rainy season.

The study commissioned by CAF will recommend the best alternative investment, considering technical, economic, social and environmental aspects, resulting in an upgraded road which is passable and safe in all seasons.