US$310 million approved for Ecuador

(Caracas, July 10, 2008).- The Andean Development Corporation (CAF) approved US$310 million for two operations in Ecuador: a contingent financing facility for US$200 million as an integrated response to natural emergencies, and partial financing for the Quito road network, particularly construction of the Gualo-Puembo Freeway in Quito. The first operation will be executed by the Ecuadorian Ministry of Finance, and the second by the Quito Metropolitan District through Empresa Municipal de Movilidad y Obras Públicas of Quito (EMMOP-Q).

On the contingent financing facility for integrated response to natural emergencies, CAF president & CEO Enrique Garcia said that "this operation is part of the Disaster Risk Management Program (Prever), which CAF set up in response to the growing frequency of natural disasters in the region and their effects on the population and the regional economy."

The CAF chief added, "in the specific case of Ecuador, according to ECLAC data, the country is exposed to a variety of natural threats; in fact, between 2000 and 2007 the country was affected by 16 natural emergencies." "The operation approved today facilitates timely and integrated financing for emergencies, specifically primary health care for victims; provisional restitution of critical services following losses of physical, natural and social capital; funds for disaster prevention; and pre-investment and permanent reconstruction of the affected works."

US$110 million for the Quito road network The objective of the second operation for US$110 million approved for Ecuador is to develop the Quito road network, particularly the Gualo-Puembo freeway, under the Municipal Investment Plan. The borrower is the Quito Municipality and the operation is guaranteed by the Republic of Ecuador.

The new route will make an evident improvement in the quality of life of the people of the city of Quito and its surroundings. It will create an access route to areas of rapid growth to the northeast of the city, and a fast interconnection between the new Quito international airport - in execution - and the city, as well as relieving the current volume of traffic which uses the inter-oceanic route, improving capacity and level of service, upgrading traffic safety, and cutting travel time and vehicle operating costs.

The project has a total cost of US$127.40 million, of which 86.4% relates to the CAF loan and 13.6% to contributions from the municipality. The CAF financing is destined for construction of the Gualo-Puembo Freeway from the Gualo traffic distributor to the locality of Puembo. This new 13.5-kilometer highway requires the building of two 500-meter suspension bridges over the San Pedro/Guayllabamba and Guambi rivers.

The work is part of the Program for development of the Tumbaco Valley, the northeast parishes and access to the new Quito Airport, as defined by the Quito Metropolitan Council, which includes maintenance and optimization of the Inter-Oceanic Highway and construction of the South Route.