Análisis internacional

$5million was approved in technical cooperation for Peru in 2003, to support work in governance, competitiveness, integration and culture.

In governance, an institutional strengthening program began to train leaders and support groups in decentralization and citizenship awareness. The Ministry of Economy and Finance received help to develop new financial mechanisms to protect democratic governance. Also, CAFhelped hold CADE 2003, whose main theme this year was investment-oriented institutionality.

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Operations approved for Peru. Year 2003 In US$ millions

Client and Executing Operation Objective Amount B Tranch Term Project

Agency (Years) Cost

Ministry of the Economy Transport Sector Ensure safe passage of traffic along 172 12.5 657 and Finance- Development Program the country's highway network

MEF/Ministry by incorporating best international practices; of Transport and promote the private sector's role in the Communications - MTC construction and management of projects and

in the provision of transport services, to achieve greater efficiency and to provide better service to the users.

Ministry of the Economy Program in support To help the country achieve three objectives: 228 12.5 849 and Finance - MEF of the reform of the (i) Entry into the global economy;

State, competitiveness (ii) Advance in the reform of public and social investment. administration to improve its performance

(iii) Improve living conditions

for the neediest through the construction of investment programs

with a social content.

Transportadora de Gas Camisera Natural Gas The project includes three components: 75 25 12 813 del Peru, S.A.- TGP Transportation System (i) development of a natural gas field with

an investment of about $600 million; (ii) construction of two pipelines: one for natural gas and another for liquids; and, (iii) construction of distribution grids for natural gas in Lima and El Callao.

Ministry of the Economy Guarantee for the Yuncán To enable the construction of a power 50 4 262 and Finance-MEF Hydroelectric Power plant with a 130MW capacity.

Project

Ministry of the Economy Institutional Help the country's efforts to build infrastructure 9 5 and Finance-MEF and Financial projects that have high components of regional

Strengthening integration.

Various clients Trade and working capital Provide financing for foreign trade, 94 Varied financing working capital requirements and capital goods.

Various clients Other operations Technical cooperation and Fondeshu. 5 Varied

The Andean Competitiveness Program (PAC) promoted several clusters in 2003, including the following: (a) Grapes in Ica, to help apply modern information technology and training techniques to increase productivity and volume of production for export, and to generate added employment; (b) Textiles and garments, which aim to strengthen the mechanisms that allow exporting firms to sub- contract production with smaller, local manufacturers; (c) Corporate networks for northern Peru’s provinces, of the clusters of shoes in Trujillo, vegetable exports in Lambayeque, milk and by products in Catamarca and ceramics in Piura; and (d) Fresh asparagus for export, to improve its logistic chain and to measure the level of know-how. Regarding informatics, CAFhas supported electronic com- merce with Prompex, as well as a project for electronic government to streamline procedures in the Employment Ministry, whose results have been adopted and are to be replicated within the Program for the Reform of the State. Lastly, in terms of removal of administrative bot- tlenecks, PAC, in association with the World Bank, promoted a study on Macroeconomic Barriers to Business Growth in Peru.

In integration, within the IIRSA initiative, CAFsponsored a number of projects and events aimed at the devel- opment of the Amazonian Axes.

In the area of cultural and com- munity development, CAFgave support to traditional art management projects in association with the Ministry of Foreign Trade and Tourism, and sponsored instruction in orchestral and choral music, and in instrument-making techniques and skills. In Vilcashuaman (in the Department of Ayacucho) a project was started in partnership with UNESCOto increase awareness of the cultural heritage as a source for employment generation. Finally, work started to introduce the sports and local cooperation programs in 2004.

Above:

A project designed to improve the logistical network of the asparagus cluster, executed by the Polytechnic University of Valencia, Spain, within the framework of CAF’s Andean Competitiveness Program (PAC).

Besides:

CAF’s Andean Competitiveness Program assigns high priority to the development of production networks. The photo shows a grape farm workshop, part of Peru’s table grapes cluster.

CAFhas approved an aggregate amount of $2,468million in operations for Venezuela, resulting in a yearly average of $494million. Over the same span of years, disbursements were $1,770million, representing 17%of the Corporation’s total.

With $337million disbursed in 2003, Venezuela’s total portfolio* reached$1,289million, distrib- uted as follows: 92%for infrastructure; 5%to support trade and for working capital; and the remaining 3%for manufacturing and other areas of economic activity. Within the proportion disbursed for infra- structure, 35percentage points went to transport and telecommunications, 21percentage points to electric power, 18points to waterworks, and another 18to social infrastructure – mostly for education, community and social services, and health.

Year 2003approvals were $535million, or 16%of CAF’s total$3,303million. Of the amount approved, $458million were for government programs aimed at improving transportation, warehous- ing and communications, as were as the supply of electricity, natural gas and water.

Within transportation, $358million was assigned to improving and expanding urban infrastruc- ture for passenger traffic. This includes support for the investment program of Inversiones Operativas de C.A. Metro de Caracas, which seeks to maintain and improve its system, and to carry out construc- tion work for the number 4Line project of the capital city’s Metro. Also included are funds for the master plan for urban development of the city of Valencia in the State of Carabobo, more specifically for the rapid-transit system that is to serve as a catalyst for the zoning of the city.

In a different segment of the same transportation sector, CAFconsolidated its support for the National Railroad Plan, which comprises a set of interconnected systems joining some of the coun- try’s most densely populated areas. In particular, financing was approved for the segment Caracas- Tuy Medio, which will communicate the capital with the Tuy valleys, helping development and improving distribution of cargo and passengers through a multi-modal transport system.

In the energy sector, Edelca’s investment plan for transmission received financing the for amount of $100million. The plan aims to provide for the growing need of electricity, while enhancing and improving the efficiency of the country’s interconnected electric power system, thereby removing the bottlenecks generated recently by the growth in industrial and residential demand.

The productive and financial system received $76 million for the financing of their foreign trade and working capital operations.