Venezuela granted loans for US$258 million

The Andean Development Corporation (CAF) signed three loan agreements with the minister of Finance of the Bolivarian Republic of Venezuela, Tobias Nóbrega, for a total of US$258 million destined to finance major energy and transport infrastructure works: US$100 million for CVG Electrificación del Caroní; US$100 million for Metro de Valencia; and US$58 million for Metro de Caracas.

CAF Executive President Enrique García said that the three operations confirm the CAF as the main source of multilateral financing for Venezuela, country that has approvals for US$1.00 billion programmed for 2004.

The loan to support the Edelca Transmission Investment Plan, the seventh operation executed by the CAF for the Guri electricity complex, is destined to improve the efficiency and reliability of the high-voltage transmission network that carries energy to the center and west of the country. The US$100-million loan, which has an eight-year term with two years’ grace, will finance supplementary investments for the project with an estimated total of US$324 million over the next five years, of which US$160 million will be invested in 2004 and 2005. The executing agency is CVG Electrificación del Caroní.

The loans for Metro de Caracas and Metro de Valencia will contribute to the development of infrastructure to improve the conditions of mass passenger transport in the these large cities with important economic activity.

The US$100-million loan for Metro de Valencia - over 10 years with two years of grace - will finance civil works and direct expenditure to complete Line 1 of the system, which is scheduled to open in 2005. The total cost of the system is US$602 million, financed by the Venezuelan government and other sources.

The US$58-million loan for Metro de Caracas over 10 years with three years of grace will finance supplementary investments in the project, repair and modernization of wagons and upgrading of the operating system. The total cost of the sub-program financed by the CAF is US$664 million.