IDB Supports Transformation of Montevideo’s Metropolitan Transport System

WASHINGTON — The Inter-American Development Bank (IDB) Board of Executive Directors has approved a Conditional Credit Line for Investment Projects (CCLIP) of $500 million to support the transformation of Montevideo’s metropolitan transport system in Uruguay. This CCLIP will directly benefit 1,3 million residents in the corridor’s area of influence, providing new transportation services and renovated public spaces.

The program will finance the implementation of an electric, high-capacity Bus Rapid Transit (BRT) system along two main corridors: Avenida 8 de Octubre and Avenida Italia. The system will include stations, segregated exclusive lanes, grade-separated crossings at major intersections, an underground section on Avenida 18 de Julio, and an interchange terminal at “Tres Cruces,” the connection point between both corridors.

The overall objective of the CCLIP is to fund a program that improves mobility in the Metropolitan Area of Montevideo.

As part of this new credit line, the Board also approved an initial individual operation of $10 million aimed at strengthening the procurement of infrastructure and transportation services, as well as improving inter-institutional coordination and the technical capacities of the responsible institutions.

This first operation will support the preparation of the projects required to tender the planned works and interventions, with the goal of having documentation at the appropriate level of detail to structure high-quality bids, reduce contractual risks, and ensure efficient and sustainable execution and operation.

This initial individual operation, for $10 million under the CCLIP, has a repayment term of 25 years, a grace period of 5,5 years, and an interest rate based on SOFR.