Feb 19, 2013
Honduras to receive $17.2 million from the IDB for main highway
Expansion project to improve road safety on CA-5 Norte
The Inter-American Development Bank (IDB) announced the approval of a $17.2 million loan to support the widening and improvement of CA-5 Norte, the principal highway in Honduras.
CA-5 Norte, of strategic importance to the region and the countryas part of the International Network of Mesoamerican Highways (RICAM), links the capital city, Tegucigalpa, with Honduras’ main industrial area, San Pedro Sula, and to the only deep-water port in Central America, Puerto Cortes, on the Caribbean coast.
The new financing complements a $30 million loan approved by the IDB in 2007 and a $50 million loan approved by the IDB in 2004 to finish worksacross 50.2 kms of CA-5 Norte. The CA-5 Norte also has financing from the World Bank, the Central American Bank for Economic Integration, the OPEC Fund and the U.S. Millennium Challenge Corporation.
The 50.2 kms improved with IDB financing are divided in two segments, the first one between San Antonio detour to the end of the Valle de Comayagua with 24.7 kms, and the second segment between La Barca and Villanueva with 25.5 kms, including a 320 ml bridge over the Ulúa river.
The investments will turn 60 percent of CA-5 Norte into a four-lane highway, while 17% will have a third climbing lane, reducing traveling time by 20 percent.
The IDB's lending consists of $12.04 million from ordinary capital (OC) and $5.16 million from the concessional Fund for Special Operations (FSO). The OC is for a 30-year term, with a 72-month grace period, and carries a variable interest rate; the FSO component is for a 40-year term, with a 40 year grace period and 0.25 percent interest.
Daniel Torres Gracia
IDB Project Team Leader