CABEI will benefit more than five million Guatemalans through US$170 million to improve road infrastructure
Resources will be invested in the improvement of 120.8 kilometers corresponding to six existing road projects and five new bridges, including a binational bridge with the Republic of El Salvador, which will favor regional integration, market access and the promotion of export and import trade.
Antigua Guatemala, March 29th, 2022. – To promote Guatemala's economic development by improving access to logistics corridors, as well as trade and social exchange by reducing transportation times and costs, the Central American Bank for Economic Integration (CABEI) approved US$170 million in financing to implement the Road Sector Investment Support Program (PROVIAL).
The works, defined in line with Guatemala's 2010-2032 Road Development Plan and as part of one of the strategies of the "Guatemala does not stop" agreement, include the construction, expansion and improvement of highways in eight of the country's departments, as well as the construction of five new bridges, including the binational "El Jobo" bridge on the border with the Republic of El Salvador, positively impacting more than 5 million inhabitants and favoring regional integration, market access and the promotion of export and import trade.
CABEI's Executive President, Dr. Dante Mossi, indicated that "this type of initiative contributes to the integral development of the country and improves the quality of life of the population through various benefits such as the reduction of time and cost of transporting products and people, accessibility to markets and job creation, especially in communities with high levels of poverty.”
The Program contemplates the improvement of logistic corridors through interventions in primary roads such as the incorporation of a third uphill lane in the route that leads from Santa Cruz Muluá-Retalhuleu to Zunil-Quetzaltenango, paving of municipal accesses and improvement of roads of productive interest in the departments of Huehuetenango, Quiche, Baja Verapaz San Marcos and El Progreso.
Through the proposed structure for the Program's execution, which contemplates a supervision scheme at different levels, CABEI expects to provide close accompaniment that will contribute to its execution in an estimated six years.
The loan was approved for a term of up to 20 years, including a five-year grace period and a six-month LIBOR interest rate, plus an initial margin established by CABEI of 240 basis points.
