The Inter-American Development Bank (IADB) has approved a US$60mn partial credit guarantee to Peru to help finance the improvement and rehabilitation of a 960km road system that links the port of Paita on the northern Pacific coast of Peru to the port of Yurimaguas on the Huallaga River, a main tributary to the Amazon.
Among the investments undertaken for the project will be building and rehabilitating bridges, paving the 10% of the road that is unpaved, resurfacing the road top and protecting existing works against natural disasters by stabilising embankments, building culverts and other works. Three new tollbooths will be placed in operation gradually, bringing the total number to eight.
The objective of the project is to promote the economic integration of Paita, Yurimaguas and the northern city of Piura by increasing trade opportunities, lowering transportation costs and establishing new production centres.
The partial credit guarantee supports a government initiative to finance infrastructure projects. The Paita-Piura-Yurimaguas corridor, known as the Northern Amazon Hub, will be improved, operated and maintained by a private concessionaire. The IADB partial credit guarantee will support deferred government annual payments to the concessionaire over a 20-year period.
The project is among those assigned a priority under the Initiative for the Integration of South American Infrastructure (IIRSA), a cooperative approach among 12 South American countries for infrastructure development.