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.
The Panamanian Government proposes to build in its country, a UN Regional Centre for Latin America and the Caribbean.
Construction of the UN regional center in Panama will cost an estimated $38 million.
The Vice President and Foreign Minister, Juan Carlos Varela, presented the project to the Corporación Andina de Fomento (CAF) and requested that support be provided for full funding of the initiative which will strengthen the capacity of the United Nations in the region.
An agreement between international organizations will provide up to $250 million in loans for Latin America's micro-financing entities.
The agreement was signed by Multilateral Investment Fund (Fomin), part of Inter-american Development Bank (IDB), Inter-American Investment Corporation (CII), Andean Development Corporation (CAF), Overseas Private Investment Corporation (OPIC) and Blue Orchard Finance.
Profitability drops as asset liquidity increases, but liquidity is what ensures the life of the banking business and their customers' money.
Panamanian banks have not used the extra funds that the financial incentive program (PEF) made available to them in order to stimulate lending. In addition, it must be considered that said funds are very expensive, and they have simply not been needed.
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.
In good times, multilateral lending agencies do not have too many customers. In times of crisis, everyone needs them.
To continue to grow and not stagnate, Latin America needs foreign investment in an amount ranging from 5% to 6% of the GDP in the region. It is $200 billion, a figure too large for the current scope of these credit institutions.
Rodrigo Lara Serrano pointed out in his article published in Americaeconomia.com that "multilateral bankers are going through times of plenty. ‘Everyone is knocking on the door and asking for money,’ said a source who asked to remain anonymous. Normally entities must search for good projects. 'Now we choose the projects, although this is delicate: How do you compare things when everyone says that their needs are of vital importance?'"
The new stretch of highway will shorten the distance between the Atlantic ports of Costa Rica and Nicaragua.
The $60 million were loaned by the Andean Promotion Corporation (CAF) and they are intended for the "Atlantic Corridor Investment Program," which includes projects in Bajos of Chilamate and Vuelta Kooper (the stretch of highway between Limón and Nicaragua,) and a new bridge over the Sixaola River on the border with Panama.
Experts in trade, logistics, and infrastructure are holding a preparatory meeting for the 5th meeting of foreign ministers scheduled for March.
Dialogociudadano.com reports: "Elmer Miranda, director of Economic Relations at the Panama Ministry of Foreign Affairs, indicated that the topics to discuss include the modernization of Customs.
At the same time, they will will discuss the search for measures to speed up, in the future, aspects relating to air and maritime transport in order to have a more efficient commercial system in the region."
SIEPAC will be launched Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama at a cost of $395.
According to reports from laprensagrafica.com, "the electrical interconnection in Central America will start in 2010 and will cover some 1,800 kilometers of transmission lines (230 kilowatts), sources close to the project told the "El Panama America" daily.
CAF approved $16.7 million to partially finance the Electric Interconnection System for the Countries of Central America, the multilateral organism reported today in a release.
These resources will be used to "contribute to the integration and development process in the Meso-American region (...) providing greater and better coverage for electrical services and to unite the markets in the sector," explained Enrique Garcia, executive president of CAF.
For Central America, the innovation field is an almost unexplored area, putting the region at a disadvantage in the face of the global crisis.
The global economic crisis, which is battering rich and poor countries without mercy, has forced Central American countries to look at the need for innovation in order to avoid the collapse of their vulnerable economies.
More than twenty ministers of foreign affairs from 13 countries in the Americas have confirmed that they will attend the meeting in Panama next week.
The meeting, called "The Road to prosperity in the Americas," will be head by the US Secretary of State, Condoleezza Rice, and will be held at a beach hotel close to the Panamanian capital, according to a release from the Panama Foreign Affairs Ministry.
In times of credit crunch from the usual sources, it is appropriate to remember that there are other alternatives for financing projects.
The Andean Development Corporation (CAF), the International Finance Corporation (IFC) of the World Bank, the Inter-American Investment Corporation (IIC) of the IDB, and the Central American Economic Integration Bank (BCIE) are all sources of financing for high impact development projects by the private sector which are highly unused by our bankers and businesses.
The IDB, the Andean Development Corporation (CAF) and the Latin American Reserve Fund announced that they will make $9.3 billion available to governments in the region to deal with the financial crisis.
The amount could double starting next year and is in response to the need for joint international action to deal with the crisis, the IDB, the Andean Development Corporation (CAF) and the Latin American Reserve Fund announced.