World Bank approves US$100mn for Paraguay roads
The World Bank has approved a US$100mn loan to Paraguay that will contribute to the reduction of transport costs and improved road safety, planning and management capacity of the country's road network.
The funds will benefit approximately 400,000 Paraguayans who use routes 1 and 3, half of whom live in rural areas, the multilateral said in a release. The highways connect capital Asunción and Central department with important development hubs in the southern and northern parts of the country.
"For a land-locked country like Paraguay, positioning itself in the global competitiveness map necessarily calls for connecting its territory with an adequate and efficient infrastructure, lowering connectivity costs, improving accessibility and promoting economic and social cohesion," said finance minister Santiago Peña.
The project is part of a strategic partnership between the World Bank and Paraguay for the period 2015-18, which seeks to boost the income of the poorest 40% in the country.
OTHER ROADWORKS
The loan will also support other priority works of the public works and communications ministry (MOPC) including the rehabilitation and maintenance of 319km of highway in San Pedro, Caaguazú, Canindeyú, Misiones and Itapúa departments.
Additionally, the loan will provide funding to improve road safety, such as the installation of guardrails, improved roundabouts and the construction of pedestrian areas for the most vulnerable users, the World Bank said.
The loan comes from the International Bank for Reconstruction and Development, the World Bank Group institution for medium-income countries, has a 35-year maturity period and an eight-year grace period.
RAPID DETERIORATION
The MOPC reported that recent studies indicated that the country's highways deteriorate at a fast rate, most likely due to insufficient maintenance.
The ministry highlights that while in 2011, 68% of the paved network in the country was in good condition, by 2015 the figure was at 59%.
Road traffic accidents cost Paraguay 2-4% of GDP, said the MOPC.
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