News Column

IDB Lends Bolivia $106 Million to Support Transport Sector Reform

June 12, 2014

WASHINGTON, June 12 -- The Inter-American Development Bank issued the following news release:

The Inter-American Development Bank (IDB) approved a $106 million loan for Bolivia to support transportation sector reform (,1303.html?id=BO%2DL1089) designed to improve the quality of transportation services and the country's national and international integration.

This operation is a policy based loan (PBL), which is a fast-disbursing instrument that provides budget support to countries undertaking priority programs and reforms.

Bolivia has a dire need to develop its transportation (,1236.html) infrastructure conditions, which have hindered business within its own borders and trade with other countries.

The Bolivian government is pursuing reforms to put into practice its new General Transportation Act (Law 165), which seeks to modernize roads, airports and railroads. The government also seeks to develop planning policies, establish coordination mechanisms, raise the quality of transportation services, and improve road safety and vehicle regulation.

The operation consists of an $84.8 million, 30-year loan from the IDB's Ordinary Capital, with a 6-year grace period and a fixed interest rate, plus a $21.2 million, 40-year loan from the IDB's Fund for Special Operations, with a 40-year grace period and an annual interest rate of 0.25 percent.

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Source: Targeted News Service

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