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Uruguay with IDB support plans to invest US$600 million in rural roads network

Friday, November 18th 2016 - 11:47 UTC
Full article 6 comments
A US$300 million credit line for investment projects will boost agricultural production by improving the rural roads network A US$300 million credit line for investment projects will boost agricultural production by improving the rural roads network

Uruguay plans to improve the rural roads network of the 18 department governments with support from two credit lines for an investment project totalling US$600 million with two initial loans completing US$150 million from the Inter-American Development Bank (IDB). The funds will support the implementation of rural roads construction in agriculture production areas, and will also be geared to improve and strengthen fiscal management and services at the departmental government level.

 A US$300 million credit line for investment projects will boost agricultural production by improving the rural roads network; it will also contribute to develop overland passenger and cargo transportation services within the jurisdiction of departmental governments.

The first, US$75 million IDB loan approved under this credit line will target rural roads, upgrading accessibility and helping reduce transportation costs through rehabilitation and conservation work. The program will also contribute to strengthen the national and departmental institutions ability to manage rural roads infrastructure spending in an efficient manner.

The second US$300 million credit line for investment projects will focus on enhancing the fiscal management and investment capabilities of the country’s 18 inland departments by strengthening their governments’ ability to manage revenues, spending and investments as well as the design and implementation of projects aimed at developing strategic sectors of the economy.

The first US$75 million loan under this credit line will support a program that seeks to raise departmental governments’ revenues through improved real-estate tax collection, better financial information handling, and upgraded investment management. In addition, it will help implement investment projects oriented at upgrading infrastructure and providing better services to their local communities.

Each initial IDB loan of US$75 million is part of a corresponding US$300 million credit line for investment projects. All facilities are for 25-year terms, with 5.5 years of grace, at a LIBOR-based interest rate.

The IDB credit line for investment projects financing the rural roads program includes US$150 million in local matching funds, while the first US$75 million loan approved within this credit line also includes US$55 million in local counterpart funds.

Categories: Economy, Investments, Uruguay.

Top Comments

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  • DemonTree

    @ ChrisR
    That actually does sound like a problem. Does Uruguay not have a civil service to do the real work? Those are the people who should get the training. What do these 'top jobs' really involve?

    Nov 18th, 2016 - 07:28 pm +1
  • javiernyc

    @ChrisR please continue with these fascinating reports on local Uruguayan politics, and the associated disfunction that appears to plague its institutions. We know the country is renown for its transparency and resolute adherence to a secular state respecting women and the LGBT community. Your descriptive stories don't necessarily contradict that perception, and ring true. Nepotism sounds rampant, which would indeed imply the transparency may not be there after all?

    Now, I wish I could say the same about your US political comments ;-)

    Nov 20th, 2016 - 03:45 am 0
  • DemonTree

    It's true I don't know much about Uruguay; I've never even been there. That's why I have more questions than answers.

    Is the problem the system itself, because these department heads should not be appointed by a politician in the first place? Or is it just that Mujica was abusing the system to give his friend a good job? Mujica took over from Vasquez, who was in the same party, so he had no real need to change the previous appointments. Who had the job before and who has it now?

    It would also be interesting to know how things were done before the Broad Front took over, but that would have been long before you moved there.

    What do you like about the country anyway? You mostly seem to complain about it on here but perhaps that is due to the nature of the site.

    Nov 20th, 2016 - 11:22 am 0
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