Peru Gets CAF Loan

The government of Peru has signed a contract with CAF for an 18-year loan with a 5-year grace period for up to $150m, according to a release by Peru’s Ministry of Economics and Finance. The interest on the loan will be Libor plus 2.4%. The loan will finance irrigation infrastructure needed to bring 38,500 hectares into agricultural production in the Las Pampas de Majes – Siguas region. The first phase of the project involves work relating to the Angostura dam and the Angostura-Colca bypass, as well as some repairs. The first phase will cost $207.7m, to be financed by the loan and by the regional government of Arequipa. The second phase will consist of the construction of the Lluclla-Siguas bypass which will cost $217.28m. The second phase will be financed by the concessionaire.