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Bolivia will improve its transportation system with IDB support

$15.8 million to finance technical support for the planning of Bolivia’s transportation infrastructure investments

The Inter-American Development Bank (IDB) will assist the Bolivian government in the analysis and planning of investments in strategic infrastructure projects with a $15.8 million loan. 

Currently, because of challenging topographical conditions, low population density, and a geographically dispersed economic base, Bolivia’s transportation costs higher than in other countries of the region. 

IDB funds will be used to finance a program to determine the viability of a railway interconnection and an inter-oceanic corridor by conducting technical, economic, financial, and social and environmental studies. In addition, the program will develop a portfolio of projects for Bolivia’s Primary Road Network. 

The studies will identify and develop railway and roadway projects that will help to reduce transportation costs and travel times by interconnecting railway networks and improving road serviceability, while making Bolivia more productive and competitive. In addition, the studies and the associated projects will make road corridors safer, thereby reducing accident rates, and will preserve the country’s road assets by rehabilitating segments of the Primary Road Network which will be more serviceable and functional. 

Bolivia’s Ministry of Public Works, Services, and Housing (MOPSV) will serve as executing agency, acting through its Office of the Deputy Minister of Transportation (VMT) and the Bolivian Highway Administration (ABC). 

The loan will be drawn from the IDB’s Ordinary Capital (70 percent) on a 30 year term with a 6 year grace period and a LIBOR-based interest rate, and from the Fund for Special Operations (30 percent) on a 40 year term with a 40 year grace period and a .25 percent interest rate.

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