Providing loans to the transportation sector

Description

Providing loans to the transportation sector involves allocating financial resources to support the development, maintenance, and modernization of transport infrastructure and services. This strategy aims to address issues such as inadequate connectivity, outdated equipment, and limited access to efficient mobility. By offering targeted loans, governments and financial institutions enable transport operators to upgrade fleets, expand networks, and improve safety standards, thereby enhancing economic activity, reducing congestion, and promoting sustainable, accessible transportation solutions.

Implementation

In thirty-three years of operations in Latin America and the Caribbean, the Inter-American Development Bank (IDB) has made 268 loans for US$8,900 million to finance communications and transportations projects costing a total of $20,500 million. Some of the larger transportation loans of 1993 included: $340 million for the Argentinian road corridor programme; in Brazil, $267 million for the modernization of the Fernao Dias highway and $147 million for highway corridors; $180 million for the modernization of Mexican feeder highways and rural roads; $30.9 and $10 million loans for the Paraguayan national rural roads programme, and $180 million for the Panamanian road repair and administration programme.