IADB agrees $215m financing for Paraguay road project
The Inter-American Development Bank has approved a $215 million loan for a road infrastructure project on National Route PY12 in Paraguay. The loan is for a 25-year term, with a 7.5-year grace period and an interest rate based on LIBOR.
The operation will finance paving and maintenance interventions on 142km of PY12, 22km of access roads, and 2km of urban roads from the turnoff for the town of Nanawa to the Triangulo junction and on access roads to General Bruguez and Ninfa, along the banks of the Pilcomayo River bordering with Argentina.
Planned interventions include construction of roadways and shoulders; adjustments to the alignment, curvature, and slopes; adaptation of embankments and sewers to critical hydrological conditions according to climate change adaptation criteria; pavement markings and road signage; installation of road safety equipment; and building three bridges on the route.
The program also contemplates service-level maintenance of some 166km for a period of four years after the upgrades are completed; technical and socio-environmental monitoring of the works; and environmental and social mitigation, including expropriations and payments for environmental services.
Other planned features include technical studies to conduct an analysis of freight and possible improvements in the infrastructure and logistics management of border crossings, as well as feasibility studies for the General Díaz-Pozo Hondo segment of PY12 (stage II), among other actions.
