Venezuela: approvals for US$862 million in 2004

(Caracas, December 14, 2004).- In 2004, US$862 million was approved in favor of Venezuela, representing over 24% of the total of US$3.50 billion approved by the Corporation. The transport sector received US$350 million for major works to improve and expand the urban passenger transport infrastructure.

For transport works, the Caracas-Tuy Medio rail project received partial financing of US$200 million. This project is part of the National Railway Plan, which consists of interconnected systems that cover most regions of the country with high population density. The project will link the city of Caracas with Valles del Tuy, diversifying the use and increasing the capacity of the inter-regional transport system. Also, a US$70-million loan was granted to Metro of Los Teques to connect the city with Caracas; and another US$80 million for Metro de Maracaibo to improve the mass transport system in that city.

This year in the energy area, the Tocoma Hydroelectricity Plant Project was approved for US$300 million. The project will increase the existing electricity supply by 15% by 2012, contributing 12,100 GWh/year on average, as well as improving the efficiency and reliability of the national electricity system. The execution of the project is part of a plan for the strategic exploitation of the Caroní River, in the south of Venezuela, whose potential has been studied since the 1950s. The plan involves construction of four hydroelectric plants. The three already in operation generate 75% of the total energy consumed in the country.

In the same sector, a US$25-million loan was approved for the state utility Compañía Anónima de Administración y Fomento Eléctrico, CADAFE, for institutional strengthening in an effort to raise its commercial management to efficient levels of measurement, billing and collections.

The social development infrastructure was attended with loans totaling US$105 million for potable water and sanitation systems for the Guajira peninsula, and for the Yacambú-Quibor Water System.

In the area of Competitiveness, loans for US$55 million were approved for the productive sectors and support for SMEs, in operations through the financial sector. The SME segment benefited from a US$25-million long-term loan from the Institutional Credit Fund (FONCREI). Other initiatives were promoted to facilitate SME access to capital and stimulate their internationalization. Through the Export Development Support Program (PADE), 30 Venezuelan SMEs with export potential were selected for diagnosis and advice on exporting.

For cooperation operations, a US$1.5-million loan was approved for the areas of sustainable development, integration, competitiveness, governance, and human development. This finance included the "Building Bridges" project, whose objective is to strengthen the leadership of Andean universities in promoting sustainable development in communities in a situation of poverty and inequality.

In the governance area, the CAF, in alliance with George Washington University and Andrés Bello Catholic University, concluded the II graduation from the Governance and Political Management Program, which trained 108 participants in public management and political affairs at national level to form a critical mass of institutional leaders and support teams. In the Transparent and Efficient Municipalities Program, joint actions with Baruta municipality in southeast Caracas modernized the cadastral system. Another important program was "Leadership for Transformation" which trained 450 natural leaders.

The Andean Competitiveness Program, PAC, continued to promote the Venezuela Competes Network, with the participation of over 30 national public and private institutions led by the Venezuelan Council for Investment Promotion, CONAPRI. The PAC has developed a culture of quality in the Venezuelan software industry by strengthening the Center for Software Engineering Excellence. Finally the PAC developed an Entrepreneur Service Model, with the participation of the Business Training Institute, UNIMET, University of Yacambú, University of the Andes, University of the Oriente, the Young Entrepreneurs Association, and the Mérida and Sartenejas Technology Parks.

In the Cultural and Community Development area, projects were supported to build capacities and strengthen responsibility and social capital. Assistance for the music program in its orchestral, choral and lute sections continued, along with the Rugby sports program in alliance with the Santa Teresa Foundation. In productive community management, craft communities were trained around the country with the help of the Foreign Trade Bank (Bancoex), while groups of young people were trained in La Guaira on the central coast in the workshop school promoted by the Spanish International Cooperation Agency and the Vargas local government. Also, the first phase of a project in alliance with the Project Paria Foundation was concluded. This project aims to strengthen the productive and marketing capacities of cacao growers, and their capacity to organize access to health and education services and possibilities of community saving and investment.