IDB Grants US$1mn for northern corridor study

The Inter-American Development Bank (IDB) has awarded a US$1mn grant to Bolivia's national highway authority (SNC) to develop a strategic environmental assessment (SEA) for a northern corridor road system, according to an IDB news release. The study is a preliminary activity to evaluate and avoid problems in future road projects. An SNC official told BNamericas that IDB has convened a bidding process to find a company to complete the study, which will be operated directly by the bank. The northern corridor is part of a long-term project under consideration by the Bolivian government to upgrade and complete the Victor Paz Estenssoro highway system, linking La Paz with the cities of Guayaramerin and Cobija on the border with Brazil. Waldo Vargas, an IDB official based in Bolivia, told BNamericas that six international firms are vying for the contract and will make presentations in December. A decision is expected to be taken by January 30. The SEA will start in February and take six to eight months to complete. It is the first of a series of studies to explore the viability of constructing a northern corridor to link La Paz with some of the country's poorer regions, Vargas said. SEA results will be the starting point for an environmental impact assessment. A technical study will also be completed before a decision is made to proceed with a construction project. "It is too early to say what investment is required because the environmental and engineering studies do not exist at this time," Vargas said. If the project proceeds, the roads would cover over 1,300km and impact the economies in the departments of La Paz, Beni and Pando, nearly 40% of the country's territory. Rains close parts of the Northern Corridor each year but the upgraded roads would be open year-round. The departments of Beni and Pando have potential for large scale agriculture and managed forestry, according to the IDB, but issues such as land tenure and property rights, economic inclusion of rural and indigenous populations, preservation of ecologically sensitive areas, sustainable forestry, among others need to be considered.