US$3 million granted to Metro de Caracas

A US$3 million loan was granted today to the Republic of Venezuela to finance the "Line III of Metro de Caracas" project which consists of execution of civil works and acquisition of equipment.

The loan agreement was signed in CAF headquarters, Caracas, by CAF President & CEO Enrique García, Sectoral Director-General of Public Finance of the Ministry of Finance, Alfonso Linares, and the President of CA Metro de Caracas, Ignacio Combellas Lares.

García said the loan was a new contribution by CAF for Metro de Caracas, as part of its policy of supporting strategic infrastructure projects in its shareholder countries.

CAF is formed by the five countries of the Andean community: Bolivia, Colombia, Ecuador, Peru and Venezuela, in addition to Brazil, Chile, Jamaica, Mexico, Panama, Paraguay and Trinidad and Tobago, which are members of other regional integration schemes.

Continuity in financing Including the current loan (US$3 million), CAF financing for Metro de Caracas totals US$192 million through four loans. The first for US$59 million was granted in 1995 for acquisition of wagons for Line 3 which covers the Plaza Venezuela-El Valley route.

A second loan was granted for US$30 million, and in July 1997, CAF granted another important loan for US$100 million to finance operating investments for overhaul of equipment and systems of the metro system.

García said this continuity of finance was part of the CAF commitment to programs and projects aimed at providing its shareholder countries with efficient and effective services, and "Metro de Caracas has demonstrated that it is at this level."

“You only need to know – García said – that the figures for passengers who travel on the Metro from distant areas of Caracas average around one million people per working day, to realize the magnitude and importance of this vital service in such a dynamic city."

The CAF president added that the Metro had become a fundamental vehicle for increasing productivity, because the daily transport of hundreds of people to their work centers reduces absenteeism and late arrival, as well as the risk of road accidents.