US$75 million for Bolivia and Paraguay integration route

CAF President & CEO Enrique García said the road would not only benefit Oruro and Potosi "but also integrate the country with Paraguay since it connects Potosí and Chuquisaca departments and further develops the Jaime Mendoza Diagonal route, an ambitious road project for the south of the country, promoted by the Bolivian government."

The multilateral financial institution is committed to investment initiatives that stimulate integration and development projects in Bolivia. CAF has now financed almost 5,000 kilometers of road works in this country.

"Bolivia - a country at the heart of South America - requires specific road projects that connect all its areas and open road communication with Argentina, Brazil, Chile and Peru, bring the country into the productive and trade circuit of the regional economy," García added.

The development bank has become one of the main sources of multilateral financing for Latin America, the leader in infrastructure and energy, giving priority to projects that promote regional integration. "We support – the CAF head said – the internal and cross-border integration of our countries because we believe that in isolation, regions and nations cannot become real actors in their economic growth and development."

García underscored the social and economic impact the Jaime Mendoza Diagonal route will have in the future because it opens a safe and reliable connection for Bolivia with its neighbors. This 706-kilometers route runs from Oruro to Cruce Ipati in Santa Cruz department.

On this occasion the CAF loan is for the Chacapuco-Ravelo route, a 124-kilometer section which will guarantee the trafficability of the road in terms of road safety and reliability throughout the year by means of a new geometric design, a good drainage system, slope stabilization, bridges and road surface, consistent with actual and expected traffic flows.

The upgrading of road infrastructure in these rural municipalities will also strengthen local productive development. A typical case is Ravelo municipality in Potosi department, where the highway will facilitate the marketing of its production of potatoes and potato seeds to La Paz and Santa Cruz.