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International advisory committee welcomes progress in development of Ecuador-Peru frontier region

The International Advisory Committee of the Binational Development Plan for the Ecuador-Peru frontier region today analyzed the relaunching and acceleration of the execution and financing of development projects designed to bring the area greater investments, services and social and environmental programs.

Inter-American Development Bank President Enrique V. Iglesias presided over the meeting at IDB headquarters in Washington, D.C., and praised the two countries for “ratifying the great priority for peace.” He praised the Binational Plan for establishing an institutional development framework for carrying out future projects and noted the need for new international grant resources.

The heads of state of Ecuador and Peru have appointed special presidential envoys, Guillermo Lasso of Ecuador and Diego García-Sayan of Peru, to give the Binational Development Plan a national priority and to represent their countries on the Committee.

Lasso told the Committee that the commitment of the two countries to the Binational Plan was demonstrated by their provision of 63 per cent of the $872.3 million in resources that have been invested in the border region, despite budget constraints. Of the total investments $238.7 million corresponded to the Binational Plan and $633.6 million to projects ancillary to the plan.

García-Sayan said that despite progress in establishing a framework for new investments, the large projects, such as development of five transportation corridors, remain to be financed and carried out. While Ecuador and Peru have achieved peace, the process needs to be consolidated through greater efforts and international assistance to follow through with the Binational Plan.

The Committee noted progress in establishing an institutional framework for carrying out the Binational Plan and the rapid implementation of projects financed with grant resources. Of the $227 million offered in grants by the international community to support the program, all but $8.3 million have been assigned to projects.

The Committee asked the IDB, the Andean Development Corporation, and other donors to assist in preparing detail project studies for the development and financing -of five road corridors, for development of the water resources of the Puyango-Tumbes Basin, and for attracting private sector investment under the framework of agencies established under the Binational Plan.

The Committee also agreed to hold a new meeting in Peru before the end of the year to consider the results of the studies and avenues for new financing.

The Binational Development Plan was an integral part of peace accords signed between Ecuador and Peru in 1998 to end a border conflict. The Plan calls for major investments from official and multilateral sources in the poor and neglected frontier region in the 10-year period ending in 2009.

Among the delegations attending Tuesday’s Advisory Committee meeting were officials from Brazil, Canada, Italy, Japan, Spain, the United States, the European Commission, the Andean Development Corporation and the United Nations Development Programme (UNDP).



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