The Peruvian Government approved a foreign debt operation with the Inter-American Development Bank (IDB) of up to US$80 million to finance the upgrading of Huanuco-Conococha Highway.
According to Supreme Decree No. 236-2017-EF published today in El Peruano official gazette, the loan shall be repaid in a single installment due on April 15, 2027.
The operation bears an interest rate based on the 3-month LIBOR interest rate plus a margin to be set by IDB.
The credit also stipulates a commitment fee charged on the undisbursed amount of the loan, which is established periodically by IDB in accordance with applicable policies.
Amortization, interests, fees and other expenses arising from the debt operation shall be borne by the Economy and Finance Ministry, with budget resources allocated for public debt service.
Huanuco – Conococha Road
According to IDB, the operation will finance the improvement of a 150-km stretch of Huanuco-Conococha Highway in the Peruvian highlands.
Once concluded, the project will cut travel times by 50 percent and reduce travel costs for both passengers and freight. It will provide better access for 243 towns and villages, directly benefiting 272,000 people, many of whom are low-income and live in rural areas.
The project will also benefit more than 1,000 vehicles that use the road daily, 30 percent of which are trucks carrying freight.
The initiative will be executed by the Peruvian Transport and Communications Ministry through the Special National Road Project (Provias Nacional).
(END) CNA/CNA/DHT/MVB
Published: 8/16/2017