The Andean hub covers a total area of 2.35 million km2 (equivalent to 50% of the Andean Community) in Venezuela, Colombia, Ecuador, Peru, and Bolivia. It extends as far southward as Iquique, Chile, but does not otherwise include the Andes mountain range in Chile, which is covered in the newly constituted Southern Andean hub. The areas in the Andean hub have a population of approximately 92 million inhabitants, with a density of 38.15 inhabitants per km2. They encompass up to 25% of global biodiversity due to the interaction of maritime coasts with the Andes mountain range and the Amazon rainforest to the east, and are also home to numerous indigenous and traditional peoples.
The Andean hub currently contains 74 IIRSA projects, divided into 9 project clusters and 2 hub-wide clusters that involve energy and communications. At the time of IIRSA’s creation, the total estimated cost of the projects in the hub was $5.0 billion. The project clusters consist of a large number of road transport, air transport, border crossing facilitation, and energy projects.
The economy of the Andean hub centers on agriculture and the processing of natural resources. According to IIRSA documents, hub sectors with the greatest developmental potential include agriculture and agro-industry; animal husbandry; forestry and related industries; fisheries; leather and footwear; metal-mechanics; iron and steel production; chemical production linked to gas and hydrocarbon processing; textiles; and tourism. The possibility of increased activity in the hydrocarbon and mining sectors is said to present “interesting options” for investors. However, CSOs in the region have expressed concern that further investment here could lead to the erosion of the region’s cultural and biological diversity, with a corresponding decline in the overall quality of life.