A further loan of $200m has been granted for the Peru-Brazil South Interoceanic Highway Project by the Andean Development Corporation (CAF).

The money is expected to be delivered in the second half of 2010 to allow the Peruvian Government and companies to finish the transcontinental road project by 2011.

This follows CAF’s approval for a loan of $300m in December 2008 to finance the highway’s remaining sections 2, 3, and 4, according to andina.com.

The project involves building and rehabilitating 2,603km of roads linking the Amazon state of Acre in Brazil with the port cities of Ilo, Matarani and San Juan de Marcona along the southern coast of Peru.

The project is expected to facilitate transport of Brazilian goods to the Pacific coast as well as of Asian products to the Atlantic coast, and increase access of Peruvian products to markets in Brazil.