WASHINGTON — The Inter-American Development Bank (IDB) has approved a Conditional Credit Line for Investment Projects (CCLIP) of $675 million to support a program designed to optimize public spending, improve road asset management, and preserve Uruguay’s National Road Network (RVN). The initiative aims to strengthen infrastructure planning, ensure financial sustainability, and enhance the overall efficiency of Uruguay’s road system.
As part of this credit line, the IDB Board approved an initial individual operation of $150 million to finance rehabilitation and maintenance works, initially focusing on the National Route 8 corridor. The program will later expand to other priority corridors across the country, improving connectivity and road quality on a national scale.
The first operation is expected to benefit 167,000 people, with a direct impact on 59,000 residents along Route 8, which crosses the departments of Cerro Largo, Treinta y Tres, and Lavalleja. The project also supports regional integration, as the corridor connects Uruguay with Brazil, facilitating trade and mobility between the countries.
The program emphasizes innovative governance and sustainability measures, including adopting best practices in public investment management, updating sectoral plans, enhancing road asset management systems, and developing strategies to ensure the financial sustainability of the road sector. These measures aim to enable Uruguay to manage its infrastructure more effectively, supporting long-term economic growth.
The $150 million first operation has a repayment term of 22.5 years, including an eight-year grace period, with an interest rate linked to the Secured Overnight Financing Rate (SOFR).
