US$75 million for agricultural development

(Caracas, November 6, 2007).- To support development of the Venezuelan agricultural sector, the Andean Development Corporation approved a US$75-million loan for the Bolivarian Republic of Venezuela for the Yacambú-Quíbor Water System in the west of the country.

"This project is part of CAF’s strategies in the sense that it favors integrated rural development as a basic means of achieving economic, social and territorial equilibrium," CAF President & CEO Enrique García said. "It is part of the work of supporting Latin American development, which the Corporation has been supporting for over 35 years," he added.

The works began in 1973 and the Yacambú Quibor Water System was set up in 1989. In its 18 years, this agency has progressed with regulation and diversion works, and promotion of the sustainable development of the Yacambú river basin and Valley of Quíbor.

Around US$600 million has been invested in the project so far, of which CAF has contributed approximately US$200 million for regulation and diversion works, as well as activities related to conservation of the basins and development of the valley. The main activity in this area was preparation of the action plan of the GIRH (Integrated Water Resources Management) Program where, based on integrated and coordinated approach, the actors involved (institutions and communities) formulated proposals for the sustainable development of the “Yacambú-Quíbor Territory.”

On this occasion, the loan approved by CAF will be used mainly for investments planned for 2008 in relation to the remaining infrastructure works (regulation, diversion and other complementary works), including a budget of US$13.3 million specifically for the environmental and social activities associated with sustainable development of the basins and the productivity of the Valley.