WASHINGTON, USA — The Inter-American Development Bank (IDB) has approved a $70 million loan to Panama to reduce costs and travel time of the country’s main road network. The project includes a pilot component that seeks to ensure access to basic services to the most isolated communities.
The project foresees to have 850 kilometers of priority roads rehabilitated and 1,760 kilometers of the National Road Network, managed under performance-base maintenance, extended within five years. The project aims to an average reduction in vehicle operating costs in parts of the network of 3 percent and an average decrease in travel time on roads rehabilitated by the program of 10 percent.
The project was expanded with $10 million to include a pilot component for rehabilitation and maintenance of rural roads in order to create a sustainable management model that provides Panama’s isolated communities with access to education and health services.
The Puebla Panama Plan (PPP1) Multiphase Road Infrastructure Program (PMIV) to Enhance Competitiveness Phase II is the second operation in a series of three phases with a total duration of 12 years of investments.
About 80 percent of roads in Panama are in poor conditions due to lack of preservation, depriving the country’s most isolated communities of access to urban centers.