The $60 million project will benefit approximately 490,000 families and indigenous communities in three departments
The Inter-American Development Bank (IDB) has approved a loan in the amount of $60 million to finance the modernization of land administration and cadastral sweeps for formalization of rural properties, as well as to strengthen the environmental and social management capacity. Areas of intervention include the Departments of La Paz, Potosi and Cochabamba.
This project will help complete the efforts of the Bolivian government to provide land titling for 106 million hectares over the last two decades. Specifically, the program will enable the formalization of property rights in 25 million remaining hectares. Land titling increases the income of rural populations and encourages producers to make investments that increase productivity and sustainability.
The total cost of the project is US$100 million to be financed as follows: $51 million from the Bank’s ordinary capital resources, $9 million from the Fund for Special Operations (FSO) of the Bank, and $40 million from INRA, the local counterpart.
The loan from the Bank’s ordinary capital has a six-year grace period, a 30-year term and an interest rate based on LIBOR. FSO funding has a term of 40 years with a 10-year grace period and a fixed annual rate of 0.25 percent.
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.