Loan of $140 million aimed at modernizing regulatory, institutional and budgetary framework
Bolivia will strengthen its system of environmental management in order to promote economic growth that is compatible with environmental conservation, social development and reduction of vulnerability to global warming with a $140 million loan from the Inter-American Development Bank (IDB).
In recent decades Bolivia has enjoyed sustained economic and social growth, which has been fueled mainly by its natural resources. But Bolivia must prevent this process -- despite the benefits it generates, such as reduction of poverty -- from causing negative effects through environmental damage. These effects could exact a toll of around five percent of the country's GDP.
The IDB loan will help enhance Bolivia's environmental management through the use of monitoring networks, contingency plans, mitigation measures and control systems. The project is designed to improve air and water quality and their consequences for public health, and to ease productivity losses due to soil erosion and inadequate handling of forest resources.
The IDB financing package is composed of $119 million over 20 years with a grace period of four years and interest rate based on LIBOR, plus $21 million over 40 years with a grace period also of 40 years and a yearly interest rate of 0.25 percent.
About the IDB
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.