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Bolivia to improve quality of public investment with support from IDB

The Inter-American Development Bank has approved a $30 million loan to help Bolivia improve the quality of public investment by financing a series of pre-investment studies

The program will finance 15 studies in strategic sectors such as energy, transport, irrigation and health care. The goal is to secure financing and commence execution immediately. 

Implementing these projects will help Bolivia achieve its medium-term development goals, such as narrowing social and infrastructure development gaps and boosting productivity. 

The impact of the program will be measured through the total amount of the investment made as a result of the studies – estimated at $2.5 billion. It will also be assessed through the reduction of the difference between the cost of the investments that are actually carried out and the costs estimated in the studies. 

The IDB will loan will be made with the blended approach: 80 percent ($24 million) will come from the Ordinary Capital fund, with a 30-year repayment period, a six-year grace period and an interest rate pegged to the LIBOR. The remaining 20 percent ($6 million) will come from the Fund for Special Operations, with a grace and repayment period of 40 years and an interest rate of 0.25 percent.

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The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source oflong-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.