Bolivian road receives support from Andean alliance
In a significant move to support the development of Bolivia's infrastructure and advance its national development plan, the multilateral Andean Development Corporation (CAF) has signed a series of loans and technical cooperation contracts with the Bolivian government. The purpose of these agreements, as outlined by CAF's executive president, Enrique García, and Bolivia's president, Evo Morales, is to foster sustainable and inclusive growth in Bolivia.
One of the key initiatives supported by these agreements is the development of the Chichas Solar Plant in Bolivia. CAF has approved a loan of $110 million for this project, which forms part of Bolivia's commitment to the energy transition and clean, renewable energy sources. The financing aims to strengthen Bolivia’s transition towards sustainable energy by supporting the expansion of renewable infrastructure, contributing both to national development goals and climate action initiatives.
In addition to the solar plant project, the loan contract, worth US$42 million, will also finance the overhauling of the Riberalta-Guayaramern road. This road, located in the north of Bolivia and connecting border zones with Brazil, will be divided into two stretches: Riberalta-Ró Yata (55km) and Ro Yata-Guayaramern (31km).
The Communities in Action Program, another priority initiative under the National Development Plan, received a second non-reimbursable technical cooperation contract. This program aims to provide comprehensive development for 148 municipalities with a population of 70% in extreme poverty. It has five components: community economic initiatives, building a decent life, environmental restoration, infrastructure and equipping communities, and strengthening community organizations. The program also focuses on guaranteeing the insertion of communities in the market, strengthening their cultural identity, and community economy.
The Communities in Action Program also provides for the setting up of training opportunities and mechanisms for beneficiaries. It seeks to combat soil degradation and desertification, and restore landscapes. The program's goal is to support the other components of the program and ensure their successful implementation.
These agreements reflect CAF’s broader efforts to provide sustainable financing solutions that improve critical infrastructure, promote energy transition, and foster human and social development across Latin America and the Caribbean. The technical cooperation contracts associated with these loans typically involve expert support, knowledge transfer, and capacity building to ensure effective project implementation and maximization of social, economic, and environmental benefits.
In summary, the loans and technical cooperation signed by Enrique García and Evo Morales are intended to finance renewable energy infrastructure, particularly the Chichas Solar Plant as part of Bolivia’s clean energy transition. They also contribute to Bolivia’s national development plan by modernizing energy infrastructure and promoting sustainability. The agreements support climate action and long-term economic resilience through strategic investments and provide technical support that improves project execution and aligns investment with Bolivia’s socio-economic development goals.
This collaboration represents CAF’s role as a leading multilateral development bank in fostering sustainable development and infrastructure modernization in Bolivia and the wider region.
The agreements between Enrique García and Evo Morales include a loan for the development of the Chichas Solar Plant, which is part of Bolivia's transition to clean, renewable energy sources, and also finance the overhauling of the Riberalta-Guayaramern road, contributing to infrastructure development in the industry and business sectors. Additionally, the Communities in Action Program, a priority initiative under Bolivia's National Development Plan, received a technical cooperation contract to support sustainable finance, human and social development, and the energy transition across Latin America and the Caribbean.
