The Central American Bank for Economic Integration (CABEI) said Wednesday that Honduras will receive a $606.9 million loan for improving transportation across the country.
The amount, provided to the Honduras Resilient Roads Program, will be used to rehabilitate and widen 308 kilometers of highway on five different routes throughout the Central American country's north and east.
With the help of this fund, the Danlí-Trojes and Ojo de Agua-Cantarranas highways, the Honduras Tourism Corridor, which includes the road segments from La Barca - El Progreso to Tela and La Ceiba, and the design of the El Progreso City Bypass will be built, as per CABEI's official website. Furthermore, the loan will be used for the studies and designs required for the Santa Rosa de Copán - Cucuyagua and the Chamelecón - Naco Bypass.
The term for repayment of the loan was set at 20 years with a 5-year grace period. However, the bank didn't mention the interest rate.
The $606.9 million loan will help promote a balanced trade of exports and imports of goods, services and products, while also benefiting 121,998 drivers, who can use these highways on a daily basis.
Moreover, the construction work will generate 2,820 temporary jobs. The funds will also support the resources required for the management, supervision and external audit of the program.
CABEI added the government program included pre-investment works and investments needed for the construction alongside rehabilitation and improvement of the highways.
The program will be carried out by the Secretariat of State in the Infrastructure and Transportation (SIT) Offices.
This entire program is aligned with CABEI's 2020-2024 Institutional Strategy, Strategic Axes of Sustainable Competitiveness and Human Development and the 2022-2026 Honduras Country Strategy that aims to modernize and strengthen infrastructure alongside boosting sustainable competitiveness.
It is also focused on improving connectivity and logistics performance while contributing to the Sustainable Development Goals.
The news comes amid a rise in organized crime in the country, with Honduras having the highest homicide rate in Central America.
Honduras recently made headlines last week after police bullets were reportedly found in some of the bodies of 46 inmates killed in the June prison riot.
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