IDB approves two credit lines totaling $600 million and two initial loans for a total of $150 million
Uruguay will improve its rural roads network and provide support to 18 departmental governments with support from two credit lines for investment projects for a total $600 million and two initial loans totaling $150 million from the Inter-American Development Bank (IDB).
The funds will support the implementation of a productive rural roads construction, enhancement, maintenance and rehabilitation program and will also improve and strengthen fiscal management and services at the departmental government level.
A $300 million credit line for investment projects will boost agricultural production by improving the rural roads network; it will also contribute to develop overland passengerand cargo transportation services within the jurisdiction of departmental governments.
The first, $75 million loan approved under this credit line will target rural roads, upgrading accessibility and helping reduce transportation costs through rehabilitation and conservation work. The program will also contribute to strengthen the national and departmental institutions ability to manage rural roads infrastructure spending in an efficient manner.
The second $300 million credit line for investment projects will focus on enhancing the fiscal management and investment capabilities of the country’s 18 inland departments by strengthening their governments’ ability to manage revenues, spending and investments as well as the design and implementation of projects aimed at developing strategic sectors of the economy.
The first, $75 million loan under this credit line will support a program that seeks to raise departmental governments’ revenues through improved real-estate tax collection, better financial information handling, and upgraded investment management. In addition, it will help implement investment projects oriented at upgrading infrastructure and providing better services to their local communities.
Each initial IDB loan of $75 million is part of a corresponding $300 million credit line for investment projects. All facilities are for 25-year terms, with 5.5 years of grace, at a LIBOR-based interest rate.
The IDB credit line for investment projects financing the rural roads program has $150 million in local counterpart funds, while the first $75 million loan approved within this credit line has $55 million in local counterpart funds.
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.