OREANDA-NEWS. Nicaragua will improve its rural road network with a $90.7 million loan approved by the Inter-American Development Bank.The project will improve the condition of roads, bridges and other transportation infrastructure in rural areas of Nicaragua, where the incidence of poverty is high. This will improve the population’s access to public and social services and will make it easier for local producers to get their products to market.

By improving the condition of the rural road network, the project also aims to reduce vehicle operating costs, shorten travel time and facilitate the use of road infrastructure for the transportation of goods and passengers. It also includes measures aimed at strengtheningthe administrative capacity of the Ministry of Transportation and Infrastructure (MTI).

Nicaragua has a road network of just over 24,000 kilometers, of which 4,820 kilometers are unpaved.

Nicaragua has one of the highest levels of poverty in Latin America, affecting around 40 percent of the population. The situation is worse in rural areas, where 62.5 percent live in poverty and 17 percent live in extreme poverty. According to the National Development Information Institute (INIDE), more than 80 percent of Nicaragua’s poor live in rural areas, many of them in remote communities where access to basic services such as education and health care is limited. 

The project features a 30-year loan for $54.4 million from the Bank’s ordinary capital, with a six-year grace period and a 40-year, $36.3 million loan from the Fund for Special Operations, which has a 40-year grace period. 

About the IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source oflong-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.