The Inter-American Development Bank (IDB) approved a $140 million loan for the Road Infrastructure Rehabilitation and Maintenance Program in the Dominican Republic, whose main goal is to help improve the country’s regional connectivity through the delivery of safe, reliable, and accessible transportation services.
The project, to be executed by the Ministry of Public Works and Communications, will directly benefit nearly 430,000 residents of rural communities adjacent to the highways and rural roads, who will get better access to basic services and connectivity to population and productive centers as well as markets. In addition, the program will provide jobs for an estimated 2,000 people, with a special focus on the employment of women.
The planned road improvements will lower vehicle cost operation and travel times, while making the targeted infrastructure more resilient to the effects of climate change.
The loan is aligned with Vision 2025 – Reinvest in the Americas: A Decade of Opportunity, the IDB Group’s roadmap to advance towards the economic recovery and inclusive growth of Latin America and the Caribbean. Additionally, under the Sustainable Infrastructure for Competitiveness and Inclusive Growth, it will help jumpstart the productive sector by closing the access gap to services for outermost locations and providing jobs for vulnerable rural populations.
Strengthening the Dominican Republic’s transport infrastructure will provide a chance to boost regional connectivity, which in turn will have a positive impact on its productivity.
Between 2013 and 2019 the country was the third most dynamic economy in Latin America and the Caribbean, with 6% annual average growth. But the pandemic caused the economy to suffer its worst fall in 55 years, with tourism, services, and transportation among the most affected sectors.
Then in 2021 it bounced back, experiencing the largest economic expansion in three decades, posting 12.4% year-on-year growth in the first 10 months of the year. The most dynamic factor was private investment (in the construction sector), along with free-trade zones and a gradual return to normalcy in the tourism sector.
The loan, from the Bank’s Ordinary Capital, will be disbursed over a five-year term. It has a 25-year amortization period, a 6-year period of grace, and an interest rate based on 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 and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
Nadia Goncalves: firstname.lastname@example.org
Manuel Rodríguez Porcel
IDB Project Team Leader