US$90 million for projects in Venezuela

(Caracas, December 29, 2008).- The Andean Development Corporation and the Bolivarian Republic of Venezuela signed two loan agreements for the Program for Potable Water and Sanitation in Urban and Rural Areas; and the National Environmental Management and Quality Project. The executing agencies are C.A. Hidrológica Venezolana (Hidroven) and the People's Ministry for the Environment, respectively.

CAF President & CEO Enrique García said, "CAF is fulfilling an important commitment to social development and the environment by generating specific strategies and supporting programs and initiatives through development of financing schemes which increase investment in these sectors in the countries of the region."

García added, "in addition to the challenges in the area of infrastructure and availability of funds, the objective of guaranteeing universal access to adequate and efficient services fundamentally requires programs and projects with a high human, social and environmental impact."

The objective of the Program for Potable Water and Sanitation in Urban and Rural Areas, which received US$50 million, is to guarantee the availability, quality, continuity and sustainability of services in urban, peri-urban and rural areas of the states of Amazonas, Anzoátegui, Aragua, Bolívar, Cojedes, Delta Amacuro, Sucre, and Trujillo. The CAF loan is equivalent 70% of the total cost of US$72.3 million, while the remaining 30% will come from local matching contributions.

The loan granted to the National Environmental Management and Quality Project, which totals US$40 million, is destined to improve the quality of life of the population and improve environmental conditions in the urban and rural areas of influence of each component. The amount granted by CAF is 72% of the total cost (US$55.13 million); the remaining 20% will come from local contributions, with investment costs covered by the Environment Ministry.

This project aims to improve public health in urban areas by reducing exposure to pollution and disease vectors related to solid waste; enhancing the institutional capacity of the Environment Ministry; fostering conservation of biodiversity and reducing degradation of natural resources by strengthening wildlife refuges and national and recreational parks; and improving environmental management policies by developing instruments such as the national forest inventory and support for a national toxic waste strategy.