US$200 million approved for Southern Interoceanic Road Corridor

(Lima, January 19, 2010).- CAF approved a US$200 million loan for execution of the final phase of sections 2, 3 and 4 of the Southern Interoceanic Road Corridor (CVIS).

CAF President & CEO Enrique García said the objective of the loan was to finance, along with contributions from other sources, a high priority public investment project, which is strategic for national development and regional integration, since it represents the first option of road interconnection between Peru and Brazil. "The corridor is expected to promote trade flows between Peru and the west center of Brazil and northern Bolivia with the Pacific Ocean basin," Garcia said.

Thanks to this loan, a road will be built to interconnect and develop the important geographical area of the Southern Macro Region of Peru, and its integration with Brazil and Bolivia. The work will have direct and indirect benefits for a population of around six million Peruvians, and one million Brazilians and Bolivians.

CAF has been supporting execution of this important road integration corridor since 2004, as a central element of the Peruvian government’s strategy of support for decentralization, territorial compensation and social equity. The corridor will lead to important socioeconomic changes in a region with nearly six million inhabitants and higher poverty levels than the national average.

CVIS, roads for economic development

Considered the largest individual road project in Peruvian history, CVIS consists of a total of 2,600 km of roads between Peru and Brazil, crossing the departments of Madre de Dios, Cuzco, Apurímac, Ayacucho, Puno, Arequipa, Moquegua, and Tacna. At national level, the Interoceanic Corridor will stimulate the economic development of the south of the country, which covers 32% of national territory and 20% of the Peruvian population. The road system will connect the Pacific ports of San Juan de Marcona, Matarani, and Ilo with the main cities of the south of Peru, Arequipa, Puno and Cuzco and, through Madre de Dios department, with Iñapari and the triple border of Peru, Brazil and Bolivia.

Section 2 of CVIS goes from Urcos in Cuzco department to Puente Inambari in Madre de Dios department; Section 3 from Puente Inambari to Iñapari on the triple border; while Section 4 also starts from Puente Inambari to reach Azángaro a few kilometers from the city of Juliaca in Puno department.

The three sections of the CVIS are scheduled for completion and opening in late 2011.