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CABEI grants loan to Nicaragua for road improvements

On December 13, the Central American Bank for Economic Integration (CABEI) approved a loan of USD 382.6 million for the execution of the tenth Road Expansion and Improvement Program in Nicaragua.

The fund will be used to build and improve 185.2 kilometers of roads in nine municipalities in the Pacific and two in the South Caribbean, divided into four sections, and will benefit some 534,820 citizens, starting with the improvement of 119.5 kilometers of roads in San Juan del Sur, Tola, Jinotepe, Diriamba and San Rafael del Sur, to build La Costanera. In the west, it is planned to build the Corinto bypass with an extension of 8.1 kilometers; in Wapi-El Tortuguero, 45.9 kilometers of roads will be upgraded, while 11.8 kilometers will be improved between La Calamidad and Empalme Masigüe, in Camoapa.

The works will be carried out in accordance with CABEI or World Bank procurement policies, as applicable, and will include the contracting of independent supervision and auditing for the Program, which will allow close and continuous monitoring by internal and external control entities,” the publication adds.

The initiative includes the construction of 16 bridges, with a cumulative length of 1,052.5 linear meters, and will be executed by the Ministry of Transportation and Infrastructure (MTI). The loan has a 15-year term, with a three-year grace period, and an indicative interest rate of 6-month Libor plus 215 basis points.

Eduardo Antonio Cabrales CuadraEduardo Cabrales
Managing Partner
García & Bodán
San Juan del Sur y Tola