Inter-American Development Bank approves loan for highway rehabilitation and maintenance Programme to boost nation’s connectivity.
The Inter-American Development Bank (IDB) has approved a $140m loan to support safe, reliable, and accessible transportation services through the rehabilitation and maintenance of the Dominican Republic’s highways.
The project, to be undertaken by the Ministry of Public Works and Communications and should directly benefit over 400,000 people across rural communities presently underserved by transport access. In addition, the programme will provide jobs for an estimated 2,000 people, with a targeted approach to employment of women through the project.
The planned road improvements will lower vehicle cost operation and travel times and will make highway infrastructure more resilient to climate impacts. It will also improve market access for local businesses and farmers.
The loan is linked to the IDB’s Vision 2025 – Reinvest in the Americas: A Decade of Opportunity. That roadmap sets a course for the economic recovery and inclusive growth that Latin America and the Caribbean desperately need to secure.
Between 2013 and 2019 the Dominican Republic was the third most dynamic economy in Latin America and the Caribbean, with 6% annual average growth. But the pandemic caused the economy to suffer its worst fall in 55 years, with tourism, services, and transportation among the most affected sectors.
In 2021 it bounced back, experiencing the largest economic expansion in three decades but large numbers of people in rural communities risk being left behind without improved connectivity.