IDB helps construct Colombia's San Francisco-Mocoa road

The Inter-American Development Bank (IDB) has approved a US$ 53 million loan to finance construction of a 45.6 km-long alternate route between San Francisco and Mocoa, in Colombia's Putumayo region.

The Colombian government will provide US$ 150 million in local counterpart funds.

The IDB expects the new route will contribute to southern Colombia's economic and social development, and help regional integration.

According to an IDB statement, the new route will replace an older road whose rehabilitation would be "too costly and environmentally inappropriate", with a more direct, shorter segment that cuts travel time and costs, and improves efficiency and safety of the Tumaco-Pasto-Mocoa road corridor.

The IDB's loan is for a 25-year term, with an eight-year grace period and a LIBOR-based variable interest rate.