Corporación Andina de Fomento has $200 million to fund preliminary studies for formulating comprehensive infrastructure projects in the region.
A statement from the CAF reads:
CAF provides funding for pre-investment in infrastructure in Latin America
- USD 200 million will be made available to support the management of strategic planning and project development of partner governments of the CAF, and to conduct preliminary studies for formulating comprehensive infrastructure projects in the region.
Latin America needs to double its investment in infrastructure, setting clear and long lasting rules in order to create strong and efficient public-private partnerships.
According to recent studies, on an international grading system the average grade for infrastructure in Latin America is 3.6 points out of 10, compared to the 5.4 average of the member countries of the Organization for Economic Cooperation and Development (OECD) , said the Spanish State secretary for Infrastructure, Rafael Catala.
Panama will acquire Series C shares from the Andean Development Corporation (CAF), and thus will be entitled to loans up to $1 billion.
The funds will be used in infrastructure projects such as the Metro system, airports, sewers and roads.
Economy Minister Alberto Vallarino said that "... it is very positive to have the support of a multilateral entity as large as CAF for executing a very ambitions public investment plan in the next five years.
Corporación Andina de Fomento approved loans to invest in road infrastructure and the restoration of hydrographic basins.
One of the loans granted by Corporación Andina de Fomento (CAF) for $71.3 million is distributed in the following way: $18.4 million for the "Investment Program for the Restoration of Priority Hydrographic Basins" and $52.9 million for the "Mass Transportation System for the City of Panama" project.
Annual Economic Development Report (RED) 2009 "Pathways to the Future: Infrastructure Management in Latin America,” by the Andean Development Corporation (CAF.)
Improving societal infrastructure quality and quantity is not only essential to the prosperity and well-being of the people, it is also a significant challenge for public policy.
"The state of the infrastructure of a society is crucial for its development; in effect, infrastructure must be seen as an engine of development, a procedural impact that represents well-being and reaches homes and people," said the representative director of CAF in Peru, Eleonora Silva Pardo, during the presentation of the report, while mentioning that the CAF has become the main source of financing for Latin America in terms of infrastructure.