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Bolivia to upgrade Primary Roads Network with $185 million from the IDB

 

NEWS FROM FASCINATING PROGRAMS & PROJECTS

13 December 2014 – Washington, DC, USA and La Paz, Bolivia – The Inter-American Development Bank (IDB) has announced approval of a $185.5 million loan for Bolivia to improve its primary road network. The resources will help finance the pavement of 32.7 kilometers of roads and the rehabilitation of another 278 kilometers.

141213-pmwj30-bolivia-ROADSAccording to the IDB, Bolivia’s road density is one of the lowest in Latin America, at 0.07 km/km2 compared to the average in the region of 0.18, and for the Andean countries, 0.12. Of its 81,000 km road network, only 7.34 percent of the road network is paved, well below the averages for the region (39 percent) and the Andean countries (27 percent).

The new program’s goals are to continue improving the quality, accessibility and safety conditions of the 15,987 km primary road network, providing rural population’s and goods producers access to domestic and international markets.

The financing consists of a $148.4 million, 30-year loan from the IDB’s Ordinary Capital, with a 6-year grace period and a fixed interest rate, plus a $37.1 million, 40-year loan from the IDB’s Fund for Special Operations, with a 40-year grace period and an annual interest rate of 0.25 percent.

Established in 1959, the Inter-American Development Bank (IDB) is a source of multilateral financing for sustainable economic, social and institutional development programs and projects throughout Latin America and the Caribbean. More information about the IDB is at http://www.iadb.org/. For more about IDB projects, visit http://www.iadb.org/en/projects/projects,1229.html.

Source: Inter-American Development Bank