Washington, D.C., September 13, 2024- The World Bank Board of Directors approved a new loan to support rural road improvement in Guayas Province of Ecuador.
The $100 million credit will finance the design, management and implementation of works to rehabilitate seven roads and to construct and improve eight bridges in rural areas. It will also focus on capacity building to strengthen the planning and maintenance of rural transportation infrastructure.
"Guayas, Ecuador's most populous coastal province, plays a key role in the country's growth and development, accounting for 30.92% of national GDP (equivalent to USD 34,317,146). This project includes several road infrastructure works that will enhance connectivity, create jobs and improve road safety in the province," said Guayas Prefect Marcela Aguiñaga.
The project will benefit more than 24,000 users daily, mostly rural inhabitants of Guayas, which has the highest concentration of vulnerable and low-income households in the province. Additionally, it will reduce travel times; make infrastructure more climate resilient; and reduce road fatalities.
"Good rural connectivity creates opportunities for greater access to employment, education and services in the most vulnerable areas," said World Bank Country Director for Bolivia, Chile, Ecuador and Peru, Issam Abousleiman, This project adds to the World Bank support to the country to contribute to resilient, inclusive development," he said.
Owing to its location, Guayas Province plays an important role in facilitating international trade and connecting Ecuador with global markets. However, natural phenomena such as heavy rainfall and earthquakes threaten the province's connectivity. Heavy rains during the winter of 2022-2023 damaged the province's road network, affecting trade and the well-being of the population. To mitigate the effects of climate change, the project will work to increase resilience and road safety.
The Autonomous Decentralized Government of Guayas Province will implement the new loan that finances the project. The national government has provided the sovereign guarantee for this credit.
---
Learn more about the work of the World Bank in Latin America and the Caribbean: www.worldbank.org/lac
