Paraguay Gets IDB Roads Funds

Paraguay has inked a $66m long term loan with the IDB in a second 5-year phase of the country’s national rural roads program, which will upgrade a substantial part of the priority rural roads network. The IDB says that 80% of funds for the loan will come from the IDB’s ordinary capital, with a 30-year term, 5.5-years grace, and an interest rate based on Libor. The remainder comes from the bank’s fund for special operations and has a 40-year maturity, a 40-year grace period and pays 0.25%. The total cost of the project is $170m. Local counterpart funds total $25.4m, along with $79.0m in cofinancing, says the IDB. The resources will support improvements and maintenance activities on local roads along 6,000km in rural zones in the eastern part of the country, used mainly to transport agricultural products. Other components include engineering and supervision, institutional strengthening and program management, and monitoring and baseline work. The program will be carried out by Paraguay’s ministry of public works and communications.