Today in Luxembourg, the President of Honduras, Juan Orlando Hernández and European Investment Bank President, Werner Hoyer, signed a USD89 million finance contract for the rehabilitation and upgrading of road sections along the Western Corridor. The project will have positive social and economic impacts and will foster regional integration.
The loan will finance the rehabilitation and upgrading of the road section (i) La Entrada - El Florido, a single carriageway road with a total length of 73 km connecting Honduras with Guatemala and the road section (ii) 43km-long single carriageway connecting La Entrada with Santa Rosa de Copan. In addition, the EIB loan also includes investments for the implementation of a package of road safety components, including horizontal and vertical signing, lighting and barriers.
President Hoyer stated: “Like other countries in the region, Honduras faces big challenges in accelerating its economic and social development.By developing road infrastructure, the EIB funding will support growth and job creation and it will as well strengthenthe competitiveness of the region and increase trade with neighboring countries Guatemala and El Salvador. Living conditions of the local communities in one of the poorest and most deprived regions in Honduras will be significantly improved through enhanced, safer connectivity and better access to centralised social services”.
The project, which forms part of Corredor de Occidente, a top government priority within the comprehensive road development plan launched by the Government, is being cofinanced by other financing institutions and has received a grant from the EU’s Latin America Investment Facility (LAIF) to support investment and technical assistance.
The EIB is providing this loan under the current Latin America mandate, which enables it to support investments designed to develop economic and social infrastructure.
The EIB signed a second tranche worth €40 million for the rehabilitation of 180 kilometres of road along the five main routes in Montenegro. The loan from the EU bank is complemented by a €1.5 million technical assistance grant awarded under the Economic Resilience Initiative (ERI). It is the first ERI grant to be awarded to a project in the Western Balkans. The total EIB investment worth €80 million is expected to increase road safety and efficiency and facilitate faster economic recovery and regional trade.
The Italian healthcare system is also being reinforced to tackle the emergency situation caused by the COVID-19 pandemic. This is being conducted with the backing of the EU bank, the EIB, which is providing the Italian government with a €2 billion loan covering around two-thirds of the resources needed for the operations contained in the Decree for revival of the healthcare system
The EIB has signed an €11.8 million EU grant with Bosnia and Herzegovina to finance the construction of the 6.9 km-long Tarčin-Ivan section of the pan-European Corridor Vc. The EU grant comes from the Western Balkans Investment Framework (WBIF) and complements an earlier EIB loan worth €40.4 million approved by the EU bank for the same section of the Corridor Vc. For the entire section including the 1 720 m long double-tube Tunnel Ivan, the European Union has provided a total of €23.3 million in grants in addition to financing provided by the EIB and the European Bank for Reconstruction and Development (EBRD), complementing funds provided by Bosnia and Herzegovina. This agreement marks another important step forward for EU assistance to the country in the construction of the Corridor Vc.