IDB Approves $12.6 Million for Transportation Infrastructure in Haiti
September 19, 2005 - The Inter-American Development Bank today announced the approval of $12.6 million in concessional financing to support Haiti’s efforts to rebuild its transportation infrastructure. The new resources will supplement a $50 million loan approved earlier this year.
The program is aimed at assisting Haiti’s recovery by addressing a key sector of its economy. The loan will help finance the rehabilitation of 170 kilometers of the primary network and 300 kilometers of secondary and tertiary roads, as well as a signage program on main highways.
Under the same program, the main runway, the taxiway and the apron of Port-au-Prince’s Toussaint L’Ouverture international airport will be repaired. At the capital city’s port, the main channel will be dredged, piers will be repaired and a perimeter fence will be built.
Another $50 million IDB loan is financing a project to improve rural roads. A separate $70 million loan supports a fund for small and medium-size infrastructure projects. Using resources from that fund, U.N. peacekeeping forces are currently carrying out road projects linking cities and small communities in the north and northwest of Haiti.
The IDB has the largest loan portfolio in execution in Haiti, with a balance of nearly $450 million. These operations finance programs involving basic infrastructure, transportation, agriculture, water and sanitation, basic education, health, job training, flood prevention, urban rehabilitation and community development. IDB loans also support public sector reforms to strengthen economic governance and transparency.
IDB loans to Haiti are for 40 years, with a 10-year grace period on amortizations. The annual interest rate is 1 percent during the first decade and 2 percent thereafter.
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