Bolivia Drives Sustainable Urban Development in La Paz and El Alto, with IDB Support

The Inter-American Development Bank (IDB) has approved a $30 million loan to Bolivia to advance comprehensive and sustainable urban development in the cities of La Paz and El Alto by creating a system of new quality public spaces.

The two cities form the La Paz-El Alto metropolitan area, the largest in Bolivia, which is home to nearly two million people and has seen rapid growth in recent years.

The loan, approved by the Bank's Board of Executive Directors, will improve the connectedness of the two cities in sustainable ways. It will also help conserve strategically important natural environments, enhancing their resilience and contributing to climate change mitigation in the metropolitan area.

Among other actions, the loan will fund the construction of an 18.2-kilometer natural corridor (linear park) connecting El Alto with the heart of La Paz. The corridor will feature a bike path that will better integrate the two cities and also offer a new tourist attraction due to the area’s unique geography. The path will help link together 30 neighborhoods and encourage active mobility on foot and by bike.

One of the main problems in the La Paz metropolitan area is the lack of quality public spaces for recreation, for effectively connecting different areas and for preserving biodiversity. The mountainous topography, lack of good roads and inefficient transportation cut neighborhoods off from each other and hinder access to public services. This loan will address these challenges.

The IDB loan has a 22-year repayment term, a 10.4-year grace period and an interest rate based on the Secured Overnight Financing Rate (SOFR).

About the IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research projects and provides policy advice, technical assistance and training to public- and private-sector clients throughout the region.