NEW ORLEANS − The Consultative Group for Ecuador-Peru met today and expressed support for the Binational Development Plan that is an integral part of the historical peace accords signed in October 1998.

The plan calls for $3 billion over ten years for the development of the Ecuador-Peru border region. Of this amount, $2.4 billion is to come from official and multilateral sources and $600 million from the private sector. Of the $2.4 billion from official and multilateral sources, approximately $600 million is to be provided during the 10-year period in the form of grants.

At today’s meeting, the international community pledged grants for more than $160 million to help finance social, environmental and economic projects to provide relief and improve the standard of living of the affected populations in the near term.

This was the first meeting of the Consultative Group that launched the process of seeking international support for the implementation of the Binational National Development Plan.

Pledges made today will help finance investment projects and feasibly studies in areas such as health, education and human development, transportation, small business and microenterprise promotion, biodiversity and environmental projects, joint water basin management, potable water and sanitation, electricity services and institutional development of local government organizations.

The Inter-American Development Bank and the Andean Development Corporation reaffirmed their commitment to provide $500 million each in the form of loans to fund economic, social, and environmental projects. In particular, CAF announced its intention to provide financing for rural roads in Ecuador and also announced the signing of a pre-investment loan for Peru. The IDB indicated that it is advancing in the consideration of roads, border infrastructure and other social and economic integration projects in the area. The World Bank also indicated that it plans to provide an additional $200 million in support of the border region.

The meeting was chaired by the Inter-American Development Bank and held at the Morial Convention Center in New Orleans on March 23, 2000.

The meeting was attended by IDB President Enrique Iglesias; the president of the Andean Development Corporation (ADC), Enrique Garcia; and the secretary-general of the Organization of American States, César Gaviria. Ecuador’s delegation was led by Foreign Minister Heinz Moeller and included Finance Minister Jorge Guzman. Peru’s delegation was led by Foreign Minister Fernando de Trazegnies and also included the Minister of Finance, Efrain Goldenberg. Over 130 delegates representing about 20 countries and 17 international donor institutions participated.

The border region comprises over 400,000 square kilometers, of which 85 percent is in the Amazon region, some 10 percent on the coast and 5 percent in the mountains. It has a total population of 4.5 million, of which 1.6 million is Ecuadorian and 2.9 million Peruvian.

The Binational Plan aims to raise the standard of living of communities in the area by building social and productive infrastructure, while paying close attention to crucial environmental considerations. It will aim to harmonize development policies for the sustainable use of ecosystems along the border. The binational programs will aim to bring economic integration to the border areas and link them to the rest of the two countries. National programs will provide infrastructure and services to meet the basic human needs of the population of these areas.

IDB President Enrique Iglesias described the results of the meeting as evidence of strong international support for the peace accords, which was "a hopeful understanding that reflects the will, the perseverance, and the immutable determination of the Ecuadorian and Peruvian peoples to achieve a long-lasting peace."