The Inter-American Development Bank (IDB) will finance road rehabilitation in Nicaragua in order to improve links between different regions of the country.

The newly approved $43.5m loan will support the ongoing civil works programme, which began under a previous IDB loan.

Once finished, the programme is hoped to reduce travel time by an average of 54% for cars, 53% for buses and 57% for heavy trucks.

The fund is also expected to boost cargo transportation, particularly for the producing regions of Chontales and Rio San Juan, by providing easier access to suppliers, customers and markets.

Currently, only 10% of the country’s 21,000km highways and road networks are paved and in good condition.