US$80 million approved for Panama

The Andean Development Corporation (CAF) today approved an operation for US$80 million in favor of the Republic of Panama, with a term of 12 years and a grace period of three and a half years. The loan will partially finance the Highway Rehabilitation and Upgrading Program, whose executing agency is the Ministry of Public Works (MOP).

CAF President & CEO Enrique García said that this decision confirmed the country’s confidence in the multinational institution as a secure and timely source of financing and its coordinating role in the integration process. He emphasized the importance of this approval as evidence of CAF’s continuing support for Panama’s infrastructure investment programs, consistent with their shared strategy of Latin American integration, which results in positive impacts on the economic and social development of the country.

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 the 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.

García added that Panama, because of its strategic geographical position, is called on act as a bridge between Central and South America, and as a channel for trade between the Caribbean and Atlantic Ocean, and the Pacific. This role is a facilitating element for the execution of an integrated development agenda that effectively promotes stability, efficiency and social equity in Latin America.

In the 2000-2004 period, CAF approved operations for US$13.72 billion in favor of the Series C shareholder countries, while disbursements totaled US$8.96 billion. In 2005, approvals will be over US$4.00 billion, disbursements about US$1.80 billion and the total portfolio of loans and capital investments over US$7.70 billion.