Govt. accepts Proex's US$120mn Tarija-Potosi road loan

Bolivia's government has accepted a US$120mn loan offer from Brazilian export promotion agency Proex to fund development of the Tarija-Potosi highway, local daily El Nuevo Dia reported. The agreement follows a visit to Bolivia by officials from Brazil's development bank BNDES. The Andean Development Fund (CAF) will also provide a US$60mn credit for the project. Acceptance of the Brazilian loan virtually guarantees that construction firm Queiroz Galvao will build the road, although an official decision on this is not expected until Thursday (Nov.20). The Proex loan is conditional on using Queiroz as the contractor and Brazilian materials. Brazilian firm Queiroz bid a revised US$159mn to undertake the work, above the revised US$124mn that SNC, the national highway authority, said it was worth. Brazil has also pledged its assistance paving the Robore-Puerto Suarez road that links Brazil and Bolivia. Acceptance of the credit conditions by the Bolivian government undermines SNC efforts to get a lower quote from Queiroz, or have it build more road for the same price, prior to the November 20 deadline.