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IDB approves $26,8 million in supplementary financing to rebuild road infrastructure in Honduras

The Inter-American Development Bank today approved a $26.8 million supplementary soft loan to Honduras to provide additional resources for rebuilding road infrastructure that was damaged during Hurricane Mitch.

The financing will support the rebuilding and restoration of 89 kilometers of paved primary roads, 17 kilometers of second roads, construction and repair of 600 meters of bridges, and repair of the damage at Taulabé, at kilometer 140 on the Tegucigalpa-San Pedro Sula highway.

In addition, consulting services will be funded for supervision of work, review of final engineering studies, concurrent financial auditing, and institutional strengthening of the Ministry of Public Works, Transport, and Housing.*

The financing supplements a $18.8 million IDB loan approved in January of 1999 to repair part of the infrastructure damage caused by Hurricane Mitch in the road and water supply sectors.

Several international agencies and bilateral donors are also providing resources for the rebuilding of road infrastructure.

The current IDB loan is for a 40-year term, with a 10-year grace period, at 1 percent annual interest rate during the grace period and a 2 percent rate thereafter.

Local counterpart funds total $4.9 million.

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