USD 88 million for Bolivia's integration infrastructure

(La Paz, June 1, 2012).- During an official visit to Bolivia, Enrique García, president & CEO of CAF - development bank of Latin America - and Planning Minister Viviana Caro signed two loan agreements totaling USD 88 million. The funds will be used for construction of the Incahuasi tunnel which connects and Monteagudo and Ipatí in Chuquisaca department, and the Chacapuco-Ravelo road section in Potosi and Chuquisaca departments.

The agreements were signed in the Government Palace in the presence of the president of the Plurinational State, Evo Morales, as witness of honor, and ministers of state.

Three non-reimbursable technical cooperation agreements were also signed covering the feasibility study for: "Integrated Solid Waste Management for the Santa Cruz metropolitan area"; "Review and Evaluation of the Geological Stability of the slopes of the Misicuni II dam project”; and reconstruction of infrastructure affected by the "La Niña" phenomenon around the country.

"Bridges, roads and highways broaden the area of influence of people’s activities by connecting them with the rest of the country, expanding markets and stimulating production. This is why CAF supports its shareholder countries in executing infrastructure integration," García said. In the case of Bolivia, the bank has financed to date 3,000 kilometers of highway.

"The loans signed today will support two works of fundamental importance for Bolivian integration: a highway which benefits Oruro, Potosí and Chuquisaca, and integrates the country with Argentina, Paraguay, Peru and Chile; and the Incahuasi tunnel which will improve serviceability and safety when crossing the Incahuasi mountains in Chuquisaca, which is part of the Jaime Mendoza Diagonal strategic highway," the CAF chief said.

Construction and paving of the 124-km Chacapuco-Ravelo section is part of the development of the Ravelo-Llallagua highway. Its rehabilitation will guarantee permanent safe road access to the area of ​​influence, as well as improving the Jaime Mendoza Diagonal, creating a reliable and safe connection with neighboring countries Bolivia Argentina, Paraguay, Peru and Chile. The loan for this project is USD 75 million.

The total cost of construction of the 1,260-meter Incahuasi Tunnel is USD 18.15 million, of which USD 13.15 million will be financed by CAF (72.47%).

The tunnel begins at the Monteagudo portal (Chuquisaca) and ends at the Ipatí portal (Santa Cruz) crossing the Incahuasi mountains. The finished work will reduce vehicle operating costs, travel time and improve efficiency and safety for users crossing the Incahuasi mountain range, located near Muyupampa.

Grants for Bolivian development

Under the non-reimbursable technical cooperation agreements, CAF will fund studies on the integrated handling of municipal solid waste in the ​​Santa Cruz metropolitan area, to be executed by the City Government.

CAF is also supporting the contracting of consultants to review and evaluate the geological stability of the slopes of the future Misicuni dam; finally a USD 125,000 grant will contribute to rebuilding infrastructure damaged by the La Niña phenomenon which caused heavy losses in Bolivia.