US$84 million approved for road infrastructure in Bolivia

The Andean Development Corporation (CAF) approved a US$84-million loan 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).

CAF President & CEO Enrique García said that this operation, in addition to being part of the IIRSA South American integration initiative, supports the Bolivian government’s efforts to implement its economic and social development strategy. The credit program will contribute to strengthening the government's strategy to improve and expand the national road infrastructure, creating incentives for agroindustrial exports and fostering actions for development, as well as promoting Bolivia’s physical integration with neighboring countries based on adequate economic development.

García added that stimulating sustainable physical infrastructure in the region was a priority objective for CAF. It represents a fundamental factor for the socioeconomic development of South America because it overcomes geographical barriers, forges closer links between markets, and promotes new economic opportunities in the region, which are essential for strengthening the competitiveness and logistics of the productive sectors and making significant progress in human development. "A stronger and economically, socially and physically united region can overcome the obstacles to its development more effectively."

The Third Transport Sector Support Program (PAST III), 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).

The total cost of the program is estimated at US$131 million, of which US$84 million will be financed by CAF, and US$47 million by local contributions. The CAF financing represents 64% of the total estimated cost.