US$513 million for Panamanian development

(Panama, June 13, 2011).- CAF - Latin American development bank - and the Republic of Panama, as full member of the financial institution, signed three loan agreements for a total of US$513 million.

The investments will go to Metro de Panama (US$400 million), Investment Program for the Water and Sanitation Sector in Panama Province (US$100 million), and the Regional Financing Facility for Immediate Response to Emergencies caused by Natural Phenomena (US$13 million).

With President Martinelli as witness of honor, the loan agreements were signed in the lecture theater of the Presidency by Minister of Economy and Finance (MEF) Alberto Vallarino; Minister of the Presidency Demetrio Papadimitriu; and CAF President Enrique García.

"These projects are part of the National Government’s plan to optimize the quality of life of Panamanians and - in that respect - are part of the integrated development agenda which CAF promotes from and for Latin America," García said after the signing.

On the loan to Metro de Panama – also signed by its secretary Roberto Roy – the CAF head said "with our support for construction of this Metro Line we are making a significant contribution to the mobility of the capital's citizens, especially those living in outlying areas far from downtown." The Metro will cut travel times, contribute to mitigation of pollution caused by existing means of transport, and facilitate activities in the city with a positive impact on levels of competitiveness.

During the event, an agreement was also signed with the executive director of Instituto de Acueductos y Alcantarillados Nacionales (IDAAN), Abdiel Cano, for the Investment Program for the Water and Sanitation Sector in Panama province. With this contribution, CAF hopes to improve the living conditions of the population of Panama province by expanding and improving coverage, quality, efficiency and reliability of drinking water and sewerage systems.

Finally, an agreement was signed to provide primary care to victims and provisional restoration of critical services, known as the Regional Financing Facility for Immediate Response to Emergencies caused by Natural Phenomena."With this facility, we offer a timely credit line to the Republic in response to the effects of torrential rains in some areas of the country," the CAF president said.