IDB credit line aims to help Honduran "agricultural corridor"

The Inter-American Development Bank (IDB) has approved a US$ 50 million credit line to help Honduras improve a road linking the capital Tegucigalpa with Puerto Castilla on the Atlantic Coast, an area known as the country's agricultural corridor.

The agricultural corridor links the departments of Francisco de Morazán, Olancho, and Colón. In addition, it will be integrated into the tourism corridor composed of the localities of El Progreso, Tela, Ceiba, Sabá, Tocoa and Puerto Castilla.

The work includes paving, repair and maintenance work on a 180 km segment between Gualaco and Puerto Castilla, including rehabilitation of bridges and road safety improvement. Routine maintenance will be carried out by microenterprises involving members of the area's Pech indigenous community.

The project's aim is to improve freight and passenger transportation conditions, reduce operating costs and travel times and strengthen regional integration.

The expected total cost of the program is US$ 77 million. The Organization of Petroleum Exporting Countries' Fund for International Development will provide US$ 25 million and the government US$ 2 million in local counterpart funding.