GUATEMALA: The IDB will invest $ 150 million in road network
April 5, 2019


The Inter-American Development Bank (IDB) is investing $ 150 million in Guatemala to implement a program to improve and rehabilitate its road network.

The Guatemalan government is expected to launch auctions for the first projects soon.
This investment will serve to improve the quality of life of Guatemalans and the economic productivity of the country.


The Inter-American Development Bank (IDB) has granted Guatemala $ 150 million to implement an ambitious road improvement and rehabilitation program that connects productive areas and departmental roads to the main network.


This investment aims to boost productivity and trade in Guatemala. According to the IDB, 3.5 million vehicles carrying more than 24 million tonnes of goods annually travel on bad roads, which increases operating costs and travel time.


The total amount of the project will be charged to the concessional regular budget with a repayment term of 24 years, a disbursement period of 6 years, a grace period of 6½ years and an interest rate determined by the London InterBank Offered Rate (LIBOR).


According to the IDB, data such as the Logistics Performance Index, which puts the country in 18th position out of 23 Latin American and Caribbean countries, are the decisive factors for investing in road works that will improve the quality of life for Guatemalans. For example, remote or isolated communities, characterized by high poverty rates, will have easier access to health and education centers, especially during rainy periods.

In addition, this program will facilitate the transportation of goods and stimulate the economic and social integration of communities among themselves through the country’s main road network. As a result, trade will be strengthened.


This investment will strengthen the country’s institutional capabilities through the incorporation of management systems, improved standards for climate-resilient infrastructure and road safety, as well as the development of guidelines and good practices for road planning.