Loan of $75 million will upgrade two major roadways, reducing travel time and logistical costs
Honduras will improve two of its main roadways by adding lanes and upgrading some sections with help from a $75 million loan from the Inter-American Development Bank (IDB).
The project will reduce travel time and the cost of operating vehicles along the country's main logistical and tourism corridor, thus boosting productivity and the Central American country's integration in the region.
Besides adding lanes, the plan calls for strengthening the roads' pavement, improving intersections, drainage equipment and bridges, and carrying out road safety work. The loan will also finance training programs and internships designed to bring more women into the workforce by incorporating them into non-traditional construction jobs.
The Regional Road Integration Program II will mean direct benefits for 126,000 people who live in the area where the work will be carried out. It will also reduce the country's transport and logistical costs, facilitating its integration into international trade.
The program has a cost estimated at $77.25 million, composed of $45 million in Ordinary Capital from the IDB, $30 million from the IDB's Fund for Special Operations and $2.25 million contributed locally. The money from the ordinary capital fund will be paid back over 30 years with a six-year grace period and an interest rate pegged to the LIBOR. The money from the Fund for Special Operations will be over 40 years, with a 40-year grace period and a fixed interest rate of 0.25 percent.
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.