US$800 million for Venezuela

CAF approvals to date total US$4.60 billion.

Enrique García, president & CEO, held a press conference to report on the activities of the multilateral organization in 2005.

In Venezuela the highest percentage of approvals were concentrated on support for financial systems and capital markets.

A report on activities in 2005 was offered at a press conference in Caracas by CAF President & CEO Enrique García, who announced that this year the Corporation had achieved a record US$4.60 billion in approvals, including total approvals of US$800 million for Venezuela.

Support for Venezuelan productivity and competitiveness

Garcia said that over US$400 million was approved in operations for the public sector, especially improvement of urban mass transport infrastructure, expand coverage of water and sanitation services, and aspects related to environmental management, for which US$174 million was reassigned. Additionally, US$350 million was assigned in favor of private investment initiatives for petrochemicals, technology and telecommunications.

"Of total approvals, 16% were assigned to the strategic area of economic infrastructure for construction works for conservation and promotion of road and transport infrastructure, to increase levels of connection in urban centers, improving local integration and enhancing the quality of life of the more vulnerable sectors," Garcia said.

The Bolivarian Republic of Venezuela received US$4 million for the social development area, specifically for Sustainable Rural Development in some areas of the country, with the basic objective of contributing to the achievement of the Millennium Goals. The activities covered by this loan also favor the sustainability of the objectives so far achieved in terms of social organization, productivity, higher income, management of natural resources, and technology transfer.

In the competitiveness, productive and MSME sectors, funds were approved in favor of various agents in the Venezuelan private sector, as evidenced by the approval of US$190 million in lines of credit to finance working capital and business lines. Operations were also approved for the corporate sector totaling US$310 million to finance investments in capital goods by leading groups in the Venezuelan productive sector.

Contributions to Venezuelan sustainable development

The chief executive reported that CAF approved non-reimbursable technical cooperation funds of approximately US$1 million in 2005 for operations covering various activities in the strategic area related to governance and social capital.

In the area of governance, the operations financed included the Integrated Automation of the Land Registry System of Sotillo Municipality, the III Governance and Political Management Program in alliance with George Washington University and the Andrés Bello Catholic University, and the Efficient and Transparent Municipalities Program in alliance with the Organization of American States (OAS) and the Canadian International Development Agency. The activities in this program included the First Workshop on Electronic Government in Caracas, with over 100 international and local guests.

In 2005, the Competitiveness Support Program (PAC) promoted, in alliance with the IDEAS Foundation, the creation of the Support System for Creation of Enterprises in Venezuela, with the participation of various universities, the firm McKinsey & Company, the Institute of Advanced Administrative Studies (IESA), and the company incubators of the Sartenejas and Merida Technology Parks. The system coordinates the work of institutions that offer consulting on the identification of business opportunities, training of potential entrepreneurs, incubation of companies, and access to financing mechanisms, among other services. PAC has also sponsored in Venezuela some publications such as the manual on Social Initiative as Competitive Strategy jointly with IESA; the publication Venezuela Technology Present and Future in alliance with the Venezuela Competes Network and the study of the Most Attractive Cities for Investment in cooperation with the Venezuelan Council for Investment Promotion (CONAPRI).

Garcia said that in the area of Cultural and Community Development, CAF supported projects to build capacities and strengthen social responsibility and capital, as well as the consolidation of the music program in its orchestral, choral and lute sections continued. In the area of productive community management, the Corporation continued its support the training of young people in La Guaira through the workshop school promoted by the Spanish International Cooperation Agency (with which a regional agreement was signed), and Vargas Municipality. The second phase with the Paria Project Foundation began, aimed at strengthening the productive and marketing capacities of cacao growers, along with organizational capacities in relation to access to health and education services and possibilities of community saving and investment. The first stage of organization and training of financial self-management groups (Bankomunales) concluded, executed by FUNDEFIR, followed by the start of the second stage which will expand this generator of a culture of investment, payment and local cooperation by means of a regulation and transfer platform based on the Internet.

Lastly, Garcia said that the Bolivarian Republic of Venezuela and CAF maintain a solid and growing relationship. During the last five-year period (2001-2005), CAF has approved a total of US$3.46 billion for Venezuela.