Europe in Latin America

eurolatThe EU’s development cooperation has achieved several successes in Latin America and is respected accordingly.

European development cooperation has a long tradition in Latin America and has a good reputation. In the past two decades, the EU has signed trade agreements with different countries and groups of countries in the region, including Mexico, Chile, Central America, the Andean Community and the Mercosur association of states. At the first Europe-Latin America summit in Rio de Janeiro in 1999, the leaders from both world regions concluded a strategic partnership. This partnership was strengthened at subsequent meetings – most recently at the eighth EU-LAC summit in Brussels 2015.

The EU has cooperated with Latin America in areas such as finance, trade and science. It is promoting investments and supports corporate cooperation. Several programmes have brought it special recognition, among them “AL-Invest”, which facilitates international expansion for small and medium enterprises, “Euro-Solar”, which makes renewable energies available to disadvantaged sections of the people, “LAIF”, that promotes investments in infrastructure, and “EUROSociAL”, which strengthens economic integration and social cohesion. In the areas of administrative decentralisation and local development, EU programmes have also delivered results in cooperation with multilateral organisations like UNDP, CEPAL and the IDB.

Article originally published here
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IDB Backs Paraguay Agriculture, Economic Program

2015-06-10-1433961822-3928805-550pxpry_orthographic-svgParaguay will improve the competitiveness of its farm and livestock sector and its economic integration, particularly in the east of the country, with a road upgrade and conservation project backed by a $90 million loan approved by the Inter-American Development Bank (IDB).

The beneficiaries will be users of the highway grid, especially small- and medium-size producers, and a population estimated at 522,000 people, of whom 76 percent live in the countryside.

The goal of upgrading and conserving roads is to improve travel conditions, the level of service and safety on motorways that are part of the program in a bid to cut transport costs, travel time and the number of accidents.

The stretches of road included in the project are part of a major logistical corridor that connects areas of production in the east of Paraguay with places that process, transform and market the country’s main export products, and with ports.

“The stretches of road that will be improved have been designed to be resilient to the effects of climate change, particularly heavy rain. Moreover, by improving the corridor with climate change considerations in mind, we will be strengthening the road network of the Oriental Region of Paraguay and consolidating a route that will be more resistant to flooding”, said Ernesto Monter, Project Team Leader of the IDB.

The works that are scheduled include the paving of a stretch of approximately 90 kilometers between San Juan Nepomuceno and Route 6, which is key to national and international integration as it connects the south-central part of eastern Paraguay, where 54% of farm production is concentrated, with the so-called Hidrovía Paraguay-Paraná, where the country’s main grain export ports are grain processing plants are located.

Furthermore, the extension of this corridor from Route 6 to the east will provide access to one of the main agricultural production and processing centers and the ports of the Paraná River.

The program will finance all work necessary to improve and conserve major roads in the east, including upgrading the technical features of existing ones and widening roads and building shoulders to bring them up to standard with other stretches along the corridor.

The project will also finance the construction of ring roads around three populated areas which will reduce heavy vehicle traffic in these communities, reducing noise, pollution and the risk of accidents. The project also includes the implementation of safety features such as pedestrian crosswalks and mechanisms to get cars to slow down.

The $90 million loan is over 23 years with a grace period of seven-and-a-half and an interest rate pegged to the Libor.

About the IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.

Article originally published here

Agreement Between BNDES and IDB foresees US $ 2.4 Billion for Infrastructure

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Investment

Resources can be used to finance sustainable energy sectors and in micro and small enterprise projects

The National Bank for Economic and Social Development (BNDES) approved this week a US $ 750 million loan for the Sustainable Energy Finance Program.

The project focuses on increasing alternative renewable energy participation –  wind, solar and biomass –  the Brazilian energy matrix and energy efficiency. The funding will have a local counterpart of up to US $ 150 million.

This is the first operation of the Conditional Credit Line Agreement for Financing the Productive and Sustainable Investment, worth up to US $ 2.4 billion, which will be formalized between BNDES and the Inter-American Development Bank (IDB).

The BNDES will have a disbursement period of up to four years from the date of signature of the agreement, a 54-month grace period and a three-month Libor-based interest rate, plus the applicable margin for loans from the IDB’s ordinary capital.

Partnership

The IDB is historically the main international creditor of the BNDES, whose partnership began in the 1960s. Until 2010, 21 loan agreements were signed between institutions, with a historical value of more than US $ 8 billion.

The most recent contracts were aimed at supporting micro, small and medium-sized enterprises operations under the second Conditional Credit Facility Agreement.

Source: Portal Brazil, with information BNDES

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