US$43 million for Guayaquil bridge

(Caracas, October 17, 2006).- Enrique García, president & CEO of the Andean Development Corporation and Francisco Suéscum, Ecuadorian ambassador in Venezuela, today signed in the headquarters of the multilateral organization a loan agreement for the Supplementary Works and Annex Bridge to the Rafael Mendoza Bridge in Guayaquil, executed by the Ministry of Public Works.

The main objectives of the operation, which totals US$43 million, are: facilitate and decongest the heavy vehicle flow in the areas of Guayaquil, La Puntilla and Durán, continuing the support that CAF has been providing since the 1990s to strengthen the transport sector in Guayaquil and Guayas province, as well as the South American Regional Infrastructure Integration Initiative (IIRSA); solve and prevent the environmental problems that affect the roads and their natural environment in the project area of influence; improve living conditions in the area by reducing transport costs and facilitating access to services, markets and raw materials.

García said "the Ministry has conceived this project as a fundamental work and integrated solution for upgrading the only direct route that links Guayaquil City with the rest of the country, through the Guayaquil–La Puntilla–Durán corridor. The work is necessary for continuing and strengthening the sustainable development of the western coastal region of this CAF partner country."

The project supplements the effort that Ecuador, through the ministry, has been making, with support from CAF which granted a first loan for US$57 million, which is fully executed. Both loans are to finance the overhaul of the existing bridge and its widening, construction of a new segmental bridge, annex over the Daule River, construction of road solutions including access roads to the bridge, the overhaul of the existing bridge over the Babahoyo River and the La Puntilla overpass.

The estimated cost of this first stage is US$147.9 million, of which the CAF contribution, including the previous operations, represents almost 70%, while the remainder comes from government contributions. According to the project execution timetable, the works are scheduled to be handed over for the service of the community in December 2006.