The Inter-American Development Bank (IDB) has approved a loan of US$ 179 million to improve the quality, traffic flows, access and security of the Fundamental Road Network operated by the Bolivian government.
The project seeks to improve roads that connect production centres with local and external markets by increasing the number of paved roads and refurbishing existing roads.
The loan also will help to improve the overall management of highway resources through a more efficient collection of tolls, and to develop the capacity of the Bolivian Highway Administration at its headquarters as well as in its regional offices, to improve its project management.
According to the IDB, only 11.7% of Bolivia’s 89,740 km road network is paved, giving the country the lowest road density in Latin America and the Caribbean. It said the lack of coverage and accessibility of the paved network not only affects Bolivia's international competitiveness and domestic economic activity.
It added that the limited road network also limits access to transportation, basic services and quality jobs with good salaries for a large percentage of the population.