US$400 million approved to support decentralization process in Colombia

(Caracas, August 18, 2009).- CAF approved a US$400 million loan in favor of the Republic of Colombia to contribute to the National Government's efforts to deepen the decentralization process. The executing agency will be the Ministry of Finance and Public Credit.

"With this operation we are accompanying the Colombian government in the implementation of a series of reforms to ensure that the decentralization model contributes to the efficient use of resources, to improving the quality of life of all inhabitants, and to the sustainable development of the country," CAF President & CEO Enrique García said. "It is at times like this, of international crisis, when multilateral development organizations like ours are obliged to react rapidly to respond to the needs of the region."

"This approval - García added - contributes to a clearer definition of competencies, particularly in the potable water and basic sanitation sector, better accountability of the use of funds from the General Revenue Sharing System (SGP), strengthening management by results, as well as a better quality of governance."

With the actions to be executed through this operation, CAF is supporting the objectives of the decentralization process in the medium and long term included in the National Development Plan and in the government prospectus Visión Colombia II Centenario: 2019.