The Inter-American Development Bank (IDB) will provide a loan of US$66m to Paraguay in an effort to improve the country’s rural road network.

The loan, as part of a US$170m project, will be spent on improving and maintaining nearly 6,000km of rural roads in the eastern part of Paraguay, which transports mainly agricultural produce.

The amount, which covers the second five-year phase of Paraguay’s National Rural Roads Program, will also see the rehabilitation of nearly 2.3km of small wooden bridges as well as replacing many of them with concrete bridges.

In addition nearly 500 urban or semi-urban streets will be stone surfaced.

Of the total US$170m, Paraguay’s local counterparts will fund US$25.4m and US$79m will be formulated through co-financing in addition to the IDB loan.

Paraguay’s Ministry of Public Works and Communications is carrying out the project.