A proposal of the Inter American Development Bank (IADB) to invest USD 200 billion for mass production of biofuels in the hemisphere and reduce oil dependence has been refused by Venezuela, said Tuesday in Guatemala Finance Minister Rodrigo Cabeza.

"Suggesting an investment of USD 200 billion is incredible when, even at this moment, two out of five Latin Americans do not have access to power supply," the minister told AFP.

During the opening of the regional forum on Monday, IADB President Luis Alberto Moreno stated that USD 200 billion would be needed to expand the production capacity over the next 14 years.

"Biofuels are a chance for the region to tap into its natural resources, as part of an activity that involves development of technological innovation sites, investment in infrastructure, streamlining of rural sectors and jobs creation," he said.