IDB approves $87 million loan to improve road network and rural access in Panama

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IDB approves $87 million loan to improve road network and rural access in Panama

Mon, 07/23/2018 - 19:40

The Inter-American Development Bank (IDB) today approved a $ 87 million loan to strengthen the road network and increase access to basic services for rural populations in western Panama.

The program will invest in the rehabilitation and maintenance of secondary roads in the province of Veraguas and rural roads in the Ngäbe-Buglé region will be adapted, the IDB said in a press release.

It also reported that part of the funds will be allocated to build a new bridge over the Chico River, on the Pan-American Highway in the province of Chiriquí.

The objective, according to the IDB, is to achieve a "transport system making it safer, more accessible and with infrastructures that incorporate elements of resistance to climate change, road safety and ethno-engineering phenomena".

Panama is the second country in Central America, behind Costa Rica, with more square kilometers paved per inhabitant in the region, but roads in rural areas, with less population density, are not in optimal condition.

In fact, 82% of secondary and tertiary roads are in a regular or bad conditions and are affected by the adverse effects of climate change.

As a result, many agricultural and livestock products do not reach consumption centers due to lack of access to main roads and rural communities have limited access to basic services such as health and education, as is the case of the Ngäbe-Buglé indigenous region, which has high rates of maternal and infant mortality.

This IDB loan has a repayment term of 20 years with a 4-year disbursement period and a grace period of 4.5 years.

 

http://www.panamatoday.com/economy/idb-approves-87-million-loan-improve-road-network-and-rural-access-panama-7386