The World Bank has approved a loan of $70m to Uruguay to improve road infrastructure and reduce traffic accidents on the road.

Currently, Uruguay is rehabilitating 890km of road in the country, and the financial assistance offered by the bank will help them to improve 260km of road in addition.

The maturity period of the variable spread loan is 17.5 years and has a five-year grace period.

"The programme also focuses on the activities that promote road safety and alleviate climate change impacts on the country’s infrastructure."

The loan is expected to reinforce National Road Rehabilitation and Maintenance Programme, which has been designed to improve and support country’s transportation sector in maintaining roads and bridges.

The programme also focuses on the activities that promote road safety and alleviate climate change impacts on the country’s infrastructure.

World Bank Argentina Paraguay Uruguay director Jesko Hentschel said: “Roads in good condition that are safer and more resilient to climate change impacts are crucial for the competitiveness of the Uruguayan economy, its exports, the country’s integration in international value chains and the sustainable jobs this infrastructure generates for Uruguayans.”

According to Uruguay’s National Road Safety Agency, nearly 506 people died in traffic accidents in 2015 and of those deaths 37.5% have been registered on national roads.

The severe weather conditions have also tainted the road infrastructure in the country.

Through this financial aid, the World Bank intends to extend its support to Uruguay's efforts to rehabilitate its 890km of national roads, incorporate improved road safety standards to enable the modernisation of 260km of roads.

The financial institution will also provide annual maintenance to 3,000km of the country’s road network.

Additionally, the programme will strengthen planning and quality control systems of road works, as well as fiduciary systems and procedures for climate change mitigation and resilience for the road network.