News Releases

Sep 2, 2010

El Salvador to improve rural roads with IDB assistance

$35 million will finance rural roads, supervision and institutional strengthening

El Salvador will improve rural roads in areas with high productive potential with a $35 million loan approved by the Inter-American Development Bank (IDB).

The IDB loan will finance the rehabilitation and/or improvement of some 80 km of rural roads within a new approach to rural roads management which enhances the investment planning and programming process, optimizing cost and project impact.

The program will also finance institutional strengthening efforts within the Ministry of Public Works, Transportation, Housing, and Urban Development (MOPTVDU, for its initials in Spanish) for the efficient and effective execution of this operation.

The ultimate objective of the program is to contribute to Government’s objective of reducing poverty and boosting economic growth for households in the area around the road works. Specifically, the program is expected to increase economic activity in the project areas, lower vehicle operating costs while increasing vehicle operating speeds, and reduced the incidence of impassable roads..

An earlier IDB loan, for $57.7 million financed a multiphase program for sustainable roads El Salvador’s rural areas and was executed from 2002 to 2009.

The MOPTVDU will carry out the new program. The IDB loan is for a 25-year term, with a 4-year grace period, at a Libor-based variable interest rate.

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Alfonso Salazar
IDB Team Leader

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