USD 60 Million to Advance Mesoamerica Integration

(Caracas, February 8, 2008).- The Republic of Costa Rica received a US$60 million loan by the Andean Development Corporation (CAF), which is intended to partially finance the Atlantic Corridor Investment Program, to be executed by Costa Rica’s Ministry of Public Works and Transport.

“This Investment Program is part of the strategic Puebla-Panama Integration Plan (PPP) Atlantic Corridor, and it aims to improve the quality of life of the population and the competitiveness of this important CAF partner country, in addition to facilitating commercial flows with Panama, Nicaragua and the rest of Mesoamerica,” explained Enrique García, CAF executive president. He added that the proposed Program has been declared a priority by the Government of Costa Rica, as part of the commitments made by the country for the achievement of the PPP goals.

The Puebla-Panama Plan (PPP) is a Mesoamerican integration and promotion initiative for social and economic development in the nine states of southeastern Mexico, the Central American Isthmus and Colombia, which joined the plan as a full member in 2006. Colombia's presence in the Puebla Panama Plan contributes to the coordination of this regional strategy with the integration plan already underway in South America through IIRSA. This means that four CAF shareholder countries are already participating in the PPP: Colombia, Costa Rica, Mexico and Panama.

One of the keys to the plan’s implementation is Productive Integration and Competitiveness, with one of its components being the integration of road infrastructure, through the construction of a road network in optimal conditions for international traffic, which will enable efficient transfer of people and goods. Specifically, the Costa Rican Atlantic Corridor to be funded by CAF in this case is an important part of this road integration strategy.

The loan will be mainly earmarked for the Bajo de Chilamate–Vuelta Kooper section, whose design studies have been financed by CAF through non-refundable funds. The construction of this section will have a marked positive impact on the reduction of transport cost and journey times, especially of agricultural and livestock products from one of the most productive areas of the country. Furthermore, the Binational Bridge over the Sixaola River project, whose sections in Panama will also be financed by the multilateral financial body, complements works carried out by the government, focused on empowering Puerto Limón, the country’s main economic area on the Atlantic Corridor. In addition to financing this binational bridge, CAF is helping devise the institutional and regulatory strategy necessary for a proper project management, with the participation of both countries.

The financing of these projects is part of CAF's action in supporting the improvement of its shareholders’ infrastructure, in particular those that contribute to regional integration.