The Andean Development Corporation has approved operations for US$1.32bn for the benefit of Bolivia, Brazil, Colombia, Costa Rica, Ecuador and Peru.

CAF president and CEO Enrique Garca explains that the operations followed the priorities of each country and were consistent with the integrated development agenda proposed by the multilateral financial organisation which pursues three fundamental objectives: macroeconomic stability, microeconomic efficiency and social equity. On this occasion, the approvals are precisely targeted to address needs in these areas.

For Bolivia, CAF approved US$70mn to partially finance execution of the Y de la Integracion Road Program to be executed by Administradora Boliviana de Carreteras (ABC). This aims to improve and expand Bolivian road infrastructure to promote and create incentives for national and international physical integration, which is part of the Bolivian government’s economic and social development strategy.

Brazil benefited with approvals of US$400mn to increase lines of credit by US$200mn in favour of Banco Do Brasil and US$200mn for Banco Ita BBA. These credits are intended to promote foreign trade, working capital and investment by companies in low-risk sectors with high value added.

For Colombia, the multilateral development bank approved US$145mn to improve infrastructure for competitiveness through support for construction of the final sector of the Bogota-Puerto de Buenaventura Road Corridor from the locality of Boga to the port.

The work is being executed by National Roads Institute (Invias). Since this is one of the most depressed areas of the country, which explains to some extent the high crime rate, the Corporation has been granting non-reimbursable funds through the CAF Social Responsibility Programs to develop human capital by means of training and education in values for 2,000 young people in Buenaventura.

Costa Rica is the fourth country to benefit from the approvals, receiving a US$10mn loan in favour of Instituto Costarricense de Electricidad (ICE), a state utility which manages a strategic sector for national development. Its basic responsibilities are to exploit hydroelectric power and provide communications services based on advanced technology. The program approved provides financial support for development and execution of the company’s investment plans in the electricity sector.

Ecuador received a US$200mn loan from the corporation to partially finance the Program for Environmental Sanitation for Community Development (Promadec) to be executed by Banco del Estado (BEDE) in coordination with the ministry of urban development and housing (Miduvi).

These bodies will channel funds to municipalities for execution of projects related to the program’s primary objective which is to improve the quality of life and health conditions of 1.8mn people.

Finally, the approvals in favour of Peru totalling US$400mn will support the Program of Social and Infrastructure Investments Against Poverty, sectoral social plan executed by the government.

As Garcia says: “The idea is to contribute to the government policy of reducing extreme poverty with an approach based on integrated human development under the concept of territoriality, as part of the gradual process of regional decentralisation.”