Guatemala to have revolving fund for infra studies

Guatemalan authorities along with the NGO Fundesa and US officials announced the creation of a revolving fund to finance pre-investment studies for infrastructure projects.

The fund, known as FIP, is expected to attract more investment to the country and boost development, the US embassy in Guatemala said. 

“[It] will finance with an initial contribution of US$7mn in three years for pre-investment studies for infrastructure projects with the aim of attracting more investment and accelerating the process of Guatemala becoming an economic engine for the region,” the embassy said on social media. 

A report in newspaper Prensa Libre said officials have identified three projects that could benefit from the first installment of funds: Guatemala City’s metro white line, the Arco Norte Metropolitano highway and the Frontera a Frontera project to widen the 150km highway from the capital to Chicacao from two to four lanes.

“Historically, local governments have had the enormous challenge in the field of hiring [contractors to carry out] feasibility studies,” said Guatemala City mayor Ricardo Quiñonez, according to the report, adding that other projects like bridges, overpasses, highways and roundabouts are also expected to benefit from the fund.