Nicaragua approves La Costanera highway financing
On June 28th, 2022, the National Assembly of Nicaragua authorized the Executive to negotiate a loan with the Central American Bank for Economic Integration (CABEI) for USD 382.6 million to finance the “Road Expansion and Improvement” program, which was agreed between CABEI authorities and the Minister of Finance and Public Credit on June 13th, 2022.
The funds 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 objective of this project is to build an international tourism corridor that connects 53 beaches on Nicaragua’s South Pacific coast, increases livestock and fish production, reduces vehicle operating costs, and brings nearby communities closer to development centers such as health and education, in addition to increasing tourism and generating 2,788 jobs.
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.
In addition, 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, which can be reviewed and adjusted semiannually.
The total amount of the project is USD 401.5 million, of which USD 18.9 million will be paid by the Government of Nicaragua.
Federico Gurdián
federico.gurdian@garciabodan.com
Managing Partner
García & Bodán
Nicaragua