Subsidies will go directly to improve and enlarge homes, and for overall improvement of the La Chacarita Alta neighborhood
The Inter-American Development Bank (IDB) has approved a $30 million loan to finance a home and neighborhood improvement program that will help to enhance the quality of life in more than 5,000 low-income homes in the metropolitan area of Asuncion, the capital of Paraguay.
The project includes the awarding of subsidies to improve and expand more than 4,600 homes as well as funding to improve physical and social infrastructure in La Chacarita Alta neighborhood, which will benefit an additional 735 households.
“The program aims to reduce the shortage of high-quality housing in Paraguay,” said Roberto Camblor, IDB project team leader. An estimated 87 percent of the housing stock in that area of the city is considered low quality.
Improvements to La Chacarita Alta neighborhood include connections to public service networks, construction of storm drain systems, opening and improvement of roadways and the construction of urban social infrastructure such as parks, health and educational centers and day care facilities.
Also included are the relocation within the same neighborhood of homes in at-risk areas, the regularization and delivery of property titles and job-training and productive activities. The program also will support improvements in the management, monitoring and evaluation of housing programs at the National Secretariat for Housing and Habitat.
The IDB credit of $30 million will be for 25 years, with a 10-year grace period 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 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.