US$786.5 million approved to finance projects in Argentina, Bolivia, Colombia, Ecuador, Panama, and Venezuela

US$210 million for infrastructure projects in Argentina

US$84 million to finance road infrastructure project in Bolivia

US$42.5 million for investment program in water and sanitation in Colombia

US$300 million for lines of credit in favor of the central banks of Bolivia, Ecuador and Venezuela

US$80 million to finance Road Rehabilitation and Upgrading Program in Panama

US$70 million available for PHASE II of the Road Infrastructure Program of Uruguay

The Andean Development Corporation (CAF) today approved operations for US$786.5 million in benefit of Argentina, Bolivia, Colombia, Ecuador, Panama, Uruguay and Venezuela. CAF President & CEO Enrique García said, "The Corporation is continuing its conceptual and financial support for a renewed regional development agenda by stimulating initiatives to promote integrated stability, efficiency and social equity."

In as the case of Argentina, CAF approved US$210 million destined to replace, in the framework of the Yacyretá Binational Hydroelectric Complex Termination Plan, the infrastructure that will be affected by the rise of the reservoir to its final level (83 meters above sea level). The executing agency is Entidad Binacional Yacyretá (EBY). With the conclusion of the works included in the Yacyretá Termination Plan, set for 2010, the hydroelectric complex will add about 7,500 additional GWh to the interconnected system of Argentina and Paraguay, increasing the reliability of the electricity systems, strengthening capacity for power generation, transmission and distribution in densely populated areas with important industrial production, as well as reinforcing regional electricity integration and the energy markets.

For Bolivia, US$84million was approved to partially finance the Third Transport Sector Support Program (PAST III), which includes the execution of eight road infrastructure projects and pre-investment studies. The executing agency will be the National Road Service (SNC). This Program, which is part of the Bolivian National Transport Sector Plan, is oriented to the development, upgrading and maintenance of the country’s road infrastructure, and supplements other financing programs approved in recent years by this organization (PAST I for US$100 million in 2003, and PAST II for US$25 million in 2004).

Colombia received the support of CAF with the approval of a loan for US$42.5 million, destined to partially finance the potable water and sanitation program of Cesar department, with the objective of improving the conditions of coverage, quality and efficiency of the services of potable water, sewerage, and collection and disposal of solid waste in 24 municipalities of Cesar department in Colombia. One of the innovative elements of this Program, which will benefit over 370,000 people, is the long-term regional approach to addressing the demands of the population in the area of basic services, based on the ordered and efficient use of the revenue from coal royalties.

For Panama, US$80 million was approved to finance the Highway Rehabilitation and Upgrading Program, whose executing agency is the Ministry of Public Works (MOP). With this loan, CAF is supporting the execution of major road infrastructure projects in Panama, destined for the rehabilitation and widening to four lanes of the existing two-lane highway between the localities of Arraiján and Chorrera, including vehicle and pedestrian bridges, upgrading and rehabilitation of access roads and partial widening of the Transístmica Highway between the cities of Panama and Colon, which jointly represent 80% of the country’s production and employment, with positive impacts on social and economic development.

Uruguay was another beneficiary country. CAF approved an operation for US$70 million, destined to partially finance the Road Infrastructure Program - Phase II, whose objective is to modernize and adapt the main national routes to facilitate integration with the Mercosur countries based on long-term sustainability. Of the total of US$70 million, US$50 million is a loan at 15 years with a five-year grace period, and up to US$20 million is in the form of a partial revolving credit guarantee, to provide the necessary backing for the Marketable Bonds to be issued by the executing agency for purchase by Provident Savings Fund Managers (AFAP) and other local institutional investors.

Finally, CAF approved three new lines of credit for a total of US$300 million in favor of the Central Bank of Bolivia (BCB), the Central Bank of Ecuador (BCE), and the Central Bank of Venezuela (BCV), with the objective of supporting the financing of their commercial operations and liquidity, and contributing to the harmonious development of national economies, and facilitating the coordination of macroeconomic policies, with a view to promoting productivity and competitiveness in the region and in Latin America.