US$30 million granted to Ecuadorian Social Development Program

(Caracas, May 18, 1995).-- A US$30 million loan was granted to the Republic of Ecuador to finance the Social Development Program, implemented by the Emergency Social Investment Fund (FISE), body attached to the Presidency of the Republic.

The signing, which took place in CAF headquarters in Caracas, was attended by the acting commercial attaché of the Ecuadorian embassy in Venezuela, Leonardo Barriga, and CAF President & CEO Enrique García, who said the loan was "another step in the search for balance between economic growth and social equity."

He added the Corporation had recently set up the Fund for Human Development (FONDESHU) to finance preparation and execution of projects to promote sustainable human development among the socioeconomically marginal sectors of CAF member countries.

CAF, soon to complete 25 years of activities, provides trade, investment and development banking services. With assets over US$2.2 5 billion, the Corporation’s shareholders include Mexico, Chile, Trinidad and Tobago and 22 private banks from the Andean region.

FISE was set up in March 1993 as a temporary mechanism for technical and financial coordination attached to the Presidency of the Republic and administratively decentralized. Its objective is to improve the living conditions of the poorest population of Ecuador, respond to the needs expressed by groups not covered by existing programs, promote community self-management processes, and stimulate community organization and participation, among other activities.

The CAF funds will finance projects approved by FISE in five specific areas:

1. Social infrastructure: construction and rehabilitation of civil works and provision of equipment for subprojects related to education, health, social welfare and sanitary works.
2. Socioeconomic infrastructure: civil works for subprojects related to water supply and sewerage, economic and social impact infrastructure.
3. Social services: selected equipment and materials, training services and other inputs for health, education and nutrition programs.
4. Productive investments with social reinvestment: pilot activities by community groups, NGOs and cooperatives.
5. Institutional development: technical assistance and training for starting and strengthening community operations, and maintenance for committees to guarantee sustainability and permanence of FISE infrastructure projects.

The program will benefit populations around the country. Several subprojects already have already been approved, including schools, small water storage and sewerage works, etc.

In 1994, CAF approved operations for its five member countries for a total US$2.16 billion, of which Ecuador received US$426 million.