MANAGUA, Nicaragua -- Nicaragua will improve the efficiency and safety of its road transportation system and advance regional integration with a $91.5 million loan approved by the Inter-American Development Bank (IDB).
The overall objective of the program is to make road transport in Nicaragua more efficient in order to foster economic activity and improve the population´s quality of life, while facilitating integration of the country’s various regions with the rest of Central America.
The project also will work to reduce vehicle operating costs, increase travel speeds, reduce accident rates and conduct studies on the impact of climate change on infrastructure. One of the main challenges faced by Central American countries is the low level of logistical performance that affects their ability to integrate competitively with their neighbors as well as the global economy.
The government’s priority is to improve the road network in order to increase access to basic services and markets. This loan includes the improvement of 36.4 km of the Villa 15 de Julio-Malpaisillo junction highway, rehabilitation of 24.7 km of the Boaco-Muy Muy highway, rehabilitation of 31.4 km of the Chinandega-Guasaule highway that is part of the Pacific Corridor, and the improvement and maintenance of 60.5 km of roads at the Las Piedrecitas-Nagarote-Izapa junction.
The project also aims to increase the total number of new shops and businesses operating in the service areas of the road sections being rehabilitated by a minimum 5 percent; reduced vehicle operating costs and increased travel speeds, with an eye to reduce traffic disruptions and accidents.
Nicaragua has a road network of nearly 24,000 kilometers, of which just over 3,100 kilometers are paved. The poor quality of its roads translates into high transport costs, hurting economic.