Panama has a new source of funding for the multiple infrastructure projects being planned by the Martinelli administration. Panama formally and fully joined CAF in July of last year and this year CAF plans to open a new regional office in Panama. CAF is the Andean Corporation for Development (Corporación Andina de Fomento), a multilateral financing institution which focuses on supporting sustainable development in countries which are CAF stakeholders, providing technical support, as well as working towards regional integration. It is currently formed by 17 countries in Latin America, the Caribbean and Europe. The CAF provides diverse banking services to clients from the private and public sector in its stakeholder countries.
CAF is currently the main source of funding for infrastructure projects in Latin America and the major source of funding in the Andean Region. It has representation offices in Buenos Aires, La Paz, Brasilia, Bogota, Quito, Madrid, Panama and Lima. Its current stakeholder countries are Panama, Bolivia, Brazil, Costa Rica, Chile, Ecuador, Spain, Jamaica, Mexico, Argentina, Paraguay, Peru, Dominican Republic, Trinidad & Tobago, Uruguay and Venezuela plus 15 private banks from the Andean region. The stakeholder countries actually hold shares of CAF.
In Panama’s case, it recently signed a Subscription Agreement for Series C Shares of Ordinary Capital for a total amount of $54,996,600.00, which constitutes an increase in capital granted by the CAF. This amount is an increase over the USD 170 million already subscribed by Panama in September 2008. CAF wants to participate closely in the development process Panama is undergoing which is why it is placing resources at its disposal seeking to partner with Panama’s development for many years to come.
During the recent visit the CAF Executive Director, Enrique Garcia reaffirmed the organism’s commitment to Panama by announcing that in the course of the next three years the financial institution will make available to Panama resources totaling USD1,000 million destined towards development and infrastructure projects.
Panama’s relationship with the CAF goes back to 1997 when it joined as stakeholder until it became a full member in 2008. The CAF is currently participating in the financing of a variety of very important infrastructure projects in Panama such as the Expansion of the Panama Canal.
The Program for Rehabilitation and Improvement of the Road Network.
The Pre-investment study of the Metro.
Other projects included in the mix are the providing of funds for the Banco Nacional de Panama, support for the Electric Sector in Panama, sewage and drainage infrastructure projects, among others. Since joining the CAF Panama has received almost USD980 million mostly for infrastructure projects.
Panama is growing and CAF wants to participate. The Martinelli administration has planned a series of ambitious infrastructure projects and a close relationship with CAF will help make these plans a reality for Panama.
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