General news

CAF approves $435mn for energy development, natural disaster response in Peru

Tuesday, July 09, 2013
Lima, Jul. 09 (ANDINA). Latin American Development Bank (CAF) has recently announced the approval of US$ 435 million for programs that boost Peru’s development agenda.
CAF President Enrique Garcia (l) and Peruvian Finance Minister Luis Miguel Castilla meet in Lima.
CAF President Enrique Garcia (l) and Peruvian Finance Minister Luis Miguel Castilla meet in Lima.

The first transaction for US$ 300 million is a credit line for natural disaster response; the second, US$ 135 million approval for Contugas (Grupo Energía de Bogotá) will finance a natural gas distribution system through pipelines in Ica province.

In regard to the natural disaster response credit line, CAF President Enrique Garcia said, “as part of CAF’s commitment with its shareholder nations, these resources were approved for Peru with the goal of supporting the country in its response to natural disasters that entail a state of emergency declaration.”

The financial institution created these credit lines in order to enable timely financing in case of emergencies caused by natural disasters. The goal is to restore critical public services and promote speedy pre-investment and reconstruction.

Southern Peru Energy Development

The second, US$ 135 million loan approved on behalf of Peru will finance the design, goods and services supply, construction, maintenance and usage of the natural gas distribution system through pipelines in Ica province.

The goal of such project -that will be executed by Grupo Energía de Bogotá, a leading company in natural gas transportation and distribution in Colombia and Peru- is natural gas distribution for home and industrial use, which will have a major social and economic impact in that area of the country.

“Infrastructure investment is one of the key factors in the region’s development and integration, therefore it’s a priority for the comprehensive development model CAF promotes for Latin America and it’s part of a priority sector for Peru,” Garcia was quoted as saying on CAF’s website.

Sustainable Forest Development in the Peruvian Amazon

Separately, Peruvian Finance Minister Miguel Castilla and CAF President Enrique Garcia signed a USD 20 million loan contract to finance the Sustainable, Inclusive and Competitive Forest Development Program in the Peruvian Amazon, with the goal of recovering and preserving the Amazonian forests.

“This program will strengthen the public institutional framework for the protection of forests and will boost the sector’s competitiveness, thus contributing to biodiversity’s preservation, which is a major part of Peru’s natural capital,” Garcia said. “It is also a social inclusion program as it will benefit vulnerable populations that live and develop their activity in those forests.”

Between 2008 and 2012, CAF has approved USD 9.372 billion in operations pursuing the development of Peru.

This article was originally published in Andina Agencia Peruana de Noticias, to see original version click here.