HIGHWAY INFRASTRUCTURE

PROGRAM WILL STIMULATE THE FURTHER ECONOMIC INTEGRATION OF CENTRAL AMERICA BY PROMOTING ITS PHYSICAL INTEGRATION. PROJECTS TO BE FUNDED INCLUDE: 1) GUATEMALA -- PAVING 68.3 KM OF 2-LANE HWY LINKING SAN FELIPE AND THE RIVER PORT OF MODESTO MENDEZ WITH CA-9 AT MORALES; 2) EL SALAVDOR -- RELOCATION, IMPROVEMENT AND PAVING OF 82 KM OF 2-LANE SEGMENT OF INTERAMERICAN HWY; 3) HONDURAS -- RECONSTRUCTION OF 38 KM, NEW CONSTRUCTION OF 37 KM AND PAVING OF ALL 75 KM OF REGIONAL HWY CA-13 LINKING ELIXIR WITH LA CEIBA; 4) NICARAGUA -- RELOCATION AND PAVING OF 22 KM OF INTERAMERICAN HWY BETWEEN LAS MERCEDES, OUTSIDE OF MANAGUA, AND SAN BENTIO; 5) NICARAGUA -- CONSTRUCTION OF 65 KM OF A NEW ALL-WEATHER ROAD FROM ACOYAPA TO THE TEPERAGUZAPAN RIVER ALONG THE NORTH COAST OF LAKE NICARAGUA; 6) COSTA RICA -- CONSTRUCTING 47 KM SEGMENT OF ALL-WEATHER ROAD FORMING PART OF THE SOUTHERN COSTAL HWY WHICH SERVES AS AN ALTERNATE ROUTE TO THE INTERAMERICAN HWY BETWEEN ESPARTA AND PALMA SUR. PROJECTS MUST MEET CRITERIA AS MAJOR LINKS IN PROMOTING CA ECONOMY; AND AS JUSTIFIED BY INABILITY OF EXISTING ROADS TO CARRY PROJECTED TRAFFIC. IT IS ALSO PROPOSED THAT THE LOAN AND FUTURE LOANS BE CONTINGENT UPON AN AGREEMENT THAT 2 BORDER CROSSINGS ALONG THE HONDURAS/NICARAGUA BORDER BE KEPT OPEN TO TRAFFIC FLOW. BENEFICIARIES WILL BE TRADESMEN, DEVELOPERS AND TRAVELERS OF THE CA COUNTRIES. PROJECT WILL BE IMPLEMENTED BY THE INFRASTRUCTURE DEPT OF CABEI. OFFICIALS OF THE REGIONAL OFFICE FOR CENTRAL AMERICAN PROGRAMS (ROCAP) WILL MONITOR THE LOAN, UNDER THE PROPOSED LOAN, CABEI IS CONTRIBUTING 1 DOLLAR FOR EVERY 4 DOLLARS OF AID FUNDS. CABEI ESTIMATES THAT ABOUT 44% OF TOTAL PROGRAM COST WILL BE NEEDED TO COVER LOCAL COSTS.