The Andean Development Corporation (CAF) on Sunday agreed to lend Venezuela 600 million U.S. dollars over 18 years to build a hydroelectric power station to begin operations in 2014, CAF Executive President Enrique Garcia has announced.
The loan shows the CAF's support for broadening electricity supply..." and promoting development infrastructure," said Garcia.
This marks the second loan provided by the CAF for the Piar Tocoma power station project. The power station, located in southeastern Venezuela, will increase the country's power supply by 15 percent.
With a loan of 300 million dollars provided in 2004, the CAF has contributed 30 percent of the whole investment needed for the project.
"With this power station we expect Venezuela's total hydroelectric power to reach 16,130 megawatts (and become) one of the world largest hydroelectric systems," he said.
Established on Feb. 7, 1968 and headquartered in Venezuela's Caracas, the CAF is the financial and credit body of the Andean Community for boosting regional integration through professionalism and the fair distribution of investment.