IDB to Help Bolivia Boost Efficient, Low-Carbon Urban Development in Sucre

The Inter-American Development Bank (IDB) has approved a $43 million loan to Bolivia to advance integrated, efficient, and low-carbon urban development in the city of Sucre, one of the country’s major tourist destinations.

This operation aims to expand access to quality public spaces and sustainable mobility infrastructure, improve urban mobility in the city's historic center, and save electricity consumption in street lighting by installing LED and digital technology. It also seeks to strengthen the municipality's urban planning and management capacity.

Sucre is known for its rich colonial architecture and cultural heritage. The city’s accelerated growth has led to intense congestion around activities and facilities in the historic center, which also impacts Sucre’s levels of inequality and environmental sustainability.

The city has a shortage of quality public spaces and parks, with only 0.64 square meters of public space per inhabitant. In recent years, public transportation has faced the difficulties of high traffic congestion. Total local trip times have increased by 30%, with a consequent increase in the cost of getting from place to place. Additionally, the city’s street lighting system consumes high amounts of electricity because of its inefficient technologies, which takes a toll on the city's finances.

This IDB loan will address these impacts, benefitting the municipality's 365,000 inhabitants with quality new public spaces, improved mobility systems, optimized public transportation routes, a more efficient lighting system and new urban planning and management tools that will strengthen the municipality's long-term capacity.

The IDB loan has an 18-year repayment term, a 12.4-year grace period and an interest rate based on the Secured Overnight Financing Rate (SOFR).