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The Andean Development Corporation (CAF) has signed three loan agreements with the minister of finance of Venezuela, Tobias Brega, for a total of US$258mn destined to finance major energy and transport infrastructure works: US$100mn for CVG Electrificacial del Caron US$100mn for Metro de Valencia; and US$58mn for Metro de Caracas.
CAF executive president Enrique Garcia says that the three operations confirm CAF as the main source of multilateral financing for Venezuela, a country that has approvals for US$1bn programmed for 2004.

The loan to support the Edelca Transmission Investment Plan, the seventh operation executed by 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 centre and west of the country.

The US$100mn loan, which has an eight-year term with two years “grace, will finance supplementary investments for the project with an estimated total of US$324mn over the next five years, of which US$160mn will be invested in 2004 and 2005. The executing agency is CVG Electrificacial del Caron‘ ­.
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$100mn 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$602mn, financed by the Venezuelan government and other sources.

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