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IDB approves $25.8 million for relief and reconstruction in Honduras

The Inter-American Development Bank today announced the approval of $25.8 million in concessional financing to Honduras to help repair and rebuild infrastructure that was damaged by Hurricane Mitch.

The resources bring the total IDB soft financing to Honduras since the hurricane to $184 million in the areas of infrastructure and social investments.

The financing from the latest IDB operation will be used to repair several sections of the country's main and secondary road network and to rehabilitate or replace bridges in Tegucigalpa and on the Tegucigalpa-San Pedro Sula highway.

In addition, Tegucigalpa's drinking-water system will be restored through the supply and installation of piping and equipment.

The total cost of the project is $28.7.

The IDB financing consists of a loan of $18.8 million from the Fund for Special Operations and $7 million in reformulated loans from previous projects whose full funding has not yet been disbursed.

The loan is for a 40-year term at an annual interest rate of 1 percent during the first 10 years and 2 percent thereafter.

Local counterpart funds total $2.9 million. The project will be carried out by the Secretaría de Comunicaciones, Obras Públicas, y Transporte.*

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