South America defines priorities for infrastructure financing

06/07/2003 - 17h35

Brasília, July 7, 2003 (Agência Brasil - ABr) - At the meeting of the Executive Council for the Integration of Regional Infrastructure in South America (IIRSA), held this week in Caracas, Venezuela, discussions had to do with projects to finance the construction of roads, installation of energy transmission cables, and support for telecommunications.

According to the head of the South America II Division (DAM-II) of the Ministry of Foreign Relations, José Eduardo Felício, there are conditions essential for the strengthening of integration among the countries of South America. "The meeting marked the end of the planning phase and the transition to the execution phase," he affirmed in an exclusive interview with Radiobrás.

He informed that, so far, around US$ 1.5 billion have been spent on studies and projects for the integration program. Most of the financing has come from the Andean Development Corporation (ADC) and the Inter-American Development Bank (IDB). The IIRSA, which is scheduled to end in 2020, can contribute to the economic strengthening of the countries on the continent in an integrated manner.

Between August 6 and 8, at the headquarters of the National Economic and Social Development Bank (BNDES), in Rio de Janeiro, all the countries of South America - with the exception of Brazil - will present two projects to receive financing from the ADC, the IDB, the Financial Fund for the Development of the River Plate Basin (Fonplata), and the BNDES itself.

"The idea of the seminar will be to establish priorities for the more than 180 integration projects already identified by the IIRSA since its inception in September, 2000," the diplomat explained.

Felício added that President Luiz Inácio Lula da Silva is especially interested in the South American integration program, and, to give it a push, Lula intends to converse with other government leaders at the inauguration of the new President of Paraguay, Nicanor Duarte Frutos, on August 15.

Up to now, the integration program has identified nine basic axes around which the projects should be centered. According to Felício, the importance of these geographical axes is that they can represent growth vectors for the economies of the region, as well as creating closer ties of physical and economic integration among South American countries.

The diplomat underscored that the integration program, which constitutes a parallel effort to what is being done by the Mercosud and Andean Community blocs, can bring uncounted benefits, such as, for example, increasing energy stocks through the expansion of gas pipelines between Brazil and Venezuela. (DAS)