US$200 million approved to finance infrastructure projects in Venezuela

The Andean Development Corporation (CAF) today approved US$200 million for Venezuela to finance the Multi-Sectoral Public Investment Program 2002-2003. The new loan brings total approvals for the country this year to over US$700 million.

The CAF executive president, Enrique García, said that the new financial operation continues the Corporation’s support for the Bolivarian Republic of Venezuela in the execution of the Economic and Social Development Plan 2001-2007, especially the Consensus Economic and Social Program which is designed put the country back on the road to economic growth.

García said the CAF has been supporting the country by financing public investment projects aimed at improving the quality of life of Venezuelans and stimulating sustainable human development, with the ultimate goal of social equilibrium.

The total cost of the Multi-Sectoral Public Investment Program 2002-2003 is $289 million, of which the development bank is financing 69% over 10 years with two years of grace. The executing agency is the Ministry of Finance, through the National Public Credit Office.

The program was designed on the basis of infrastructure projects to address the needs of four priority sectors: transport, education, health and environment.

In the transport sector, the loan will be used to equip and rehabilitate the road system to increase trade and facilitate tourism; in education the resources are for the projects: Construction of 2,000 Pre-school Classrooms and the Bolivarian Schools Special Plan.

In health, the financial support will go to optimize services in medical centers; and for the environment, the projects will improve environmental health conditions, the quality and coverage of potable water, solid waste handling and sewage treatment. Finance will also be provided for pre-investment studies for projects that form part of the Initiative for the Integration of South American Regional Infrastructure (IIRSA), which the Corporation is promoting.