Bolivia to Improve Road Connections in La Paz with IDB Support

The Inter-American Development Bank (IDB) approved a $50 million loan to better connect the Department of La Paz and further integrate its economy. This funding will be used to improve and pave a 33.1 kilometer stretch of Highway RVF19 Botijlaca-Caquiaviri, lowering travel costs and times.

With a focus on safety, sustainability, and inclusion, the program will also implement better road safety standards, and the roadworks will be engineered to meet climate-resilient design standards.

Around 26,000 citizens and 6,552 inhabitants of the project area (Botijlaca-Caquiaviri) will directly benefit from better road connections along this initial corridor that will link up the municipalities of Caquiaviri, Comanche, Charaña and San Andrés de Machaca, in addition to providing access to the Peruvian border. The highway runs parallel to the Nazacara-Hito IV corridor.

The financing will also cover activities to support institutions and boost road maintenance micro enterprises, as well as products designed to narrow socioeconomic gaps.

Maintaining and renovating Bolivia’s road infrastructure is crucial to strengthening its economy and closing socioeconomic gaps. More than 80% of the country’s exports are by road. These land routes provide inter-urban and rural areas with their only physical means of accessing goods and services.

The total program cost is $58 million, of which $50 million will be financed by the IDB and $8 million will be funded as a local contribution. The loan will be disbursed over a period of five years, with a 20-year repayment term, a 10.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).