Mexico will continue its urban development and territorial planning reforms with a loan from the Inter-American Development Bank (IDB) that is part of a programmatic series in support of policy reforms.
The program will continue to support the regulation and application of the instruments of the General Law of Human Settlements, Territorial Planning and Urban Development (LGAHOTDU for its Spanish acronym) with the objective of consolidating the Secretariat of Agrarian, Territorial and Urban Development (SEDATU for its Spanish acronym) as the institution in charge of territorial planning in the country.
Specifically, the loan will support SEDATU with the development of the regulatory framework necessary to initiate the implementation of the territorial planning policy. In addition, the program will strengthen intergovernmental and inter-institutional coordination, based on the constitution of the offices provided by the LGAHOTDU, such as the areas for consultation, advisory, monitoring and evaluation of territorial planning and urban development policies in different instances of government.
Lastly, the loan will support the formulation, management and consolidation of national, state, metropolitan and municipal plans, programs and instruments related to the country´s territorial planning and urban development.
As a result of a decade of research and consultation, the LGAHOTDU was approved in November 2016 to lay the foundation for a new urban and territorial development model in Mexico that is comprehensive, inclusive, resilient and sustainable.
The US$600 million loan has a repayment term of 20 years, a grace period of 5 and a half years, and an interest rate based on LIBOR.
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.