IDB supports Ecuador to improve rural roads and the population's access to health and education

By IDB

This is a machine translation of the original press release issued in Spanish.

The Inter-American Development Bank (IDB) approved an US$80 million loan to finance a program in Ecuador that seeks to improve transportation efficiency in the country's Provincial Road Network and the accessibility of health and education services for small rural populations.

The general objective of the operation approved by the IDB Board of Executive Directors is to contribute to improving the social inclusion and productivity of the rural population.

The program will finance the improvement and rehabilitation of existing rural roads with improvements in the pavement structure and placement of asphalt running surface, as well as the technical supervision of the works.

The users of the intervened roads will be beneficiaries of the program, including freight transportation, other actors in the provincial logistics chains and the communities located in the area of influence of the projects. Among the beneficiary population, 51.5% are women and include people with disabilities, indigenous people, Montubios and Afro-descendants.

It will also finance feasibility studies, sustainable transportation and mobility design, and civil works engineering studies for rural roads, promote the participation of indigenous communities in aspects of the road design of the projects, and finance institutional strengthening actions. Through these actions, the implementation of gender equity and diversity criteria, digital transformation, climate change and sustainability will be promoted in the planning and management of rural roads in the country.

Road infrastructure contributes to improving the accessibility of the rural population to urban centers, state roads, markets and social services such as health and education. Improving connectivity in rural areas promotes agricultural productivity and economic development: It reduces travel times and logistics costs, allows the agricultural sector to transport its products more efficiently, contributes to the development of MSMEs, generates employment and reduces the gaps between urban and rural.

The IDB loan of US$80 million has a repayment period of 25 years, a grace period of 5 and a half years and an interest rate based on SOFR.