The Inter-American Development Bank approved an $80 million loan to finance a program in Ecuador to make transportation on the country's provincial road network more efficient and improve access to health and education services for small rural populations.

The overall goal of the operation approved by the IDB's Board of Executive Directors is to boost the social inclusion and productivity of rural groups.

The program will fund improvements and repairs to existing rural roads by upgrading the paving structure and laying down asphalt, and by enhancing projects’ technical supervision.

It will also finance feasibility studies, final designs for sustainable transportation and mobility, and civil engineering studies for rural roads. Additionally, it will involve indigenous communities in road design aspects and finance institutional strengthening actions. The programs actions will help mainstream gender equity and diversity, digital transformation, and climate change and sustainability criteria in Ecuador’s rural road planning and management. 

Road infrastructure makes it easier for rural populations to access cities, state roads, markets, and social services such as health and education. Improved connectivity in rural areas bolsters agricultural productivity and economic development by reducing travel times and logistical costs, allowing the agricultural sector to transport its products more efficiently, contributing to the development of MSMEs, creating jobs and reducing the urban-rural divide.

The program will benefit the users of the upgraded roads, including freight hauelrs, other players in provincial logistics chains, and the communities located in project areas. Women make up 51.5% of these beneficiaries, who also include people with disabilities, indigenous people, Montuvios and people of African descent.

The $80 million IDB loan has a 25-year repayment term, a 5.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).