Nicaragua approves IEB road infrastructure loan

Nicaragua's national assembly unanimously approved the US$136mn loan agreement that the government signed last month with the European Investment Bank (EIB).

The loan will be used to upgrade 9.55km of the Juan Pablo II avenue, one of capital Managua's main roads, by repaving it with hydraulic concrete and widening it from four to six lanes in both directions. Two of those lanes are set to be reserved for buses forming part of a future bus rapid transit (BRT) line.

The project also entails the construction of five overpasses in different intersections of the avenue, as well as improvement works on the neighboring area's storm drain infrastructure.

The initiative will require a total estimated investment of US$275mn. In addition to the EIB loan, Central American development bank Cabei will provide US$105mn. The remaining funds will come from the national government and the Managua municipality.

The loan agreement was previously approved by the assembly's economy and budget committee.

The avenue's upgrade is one of a handful of initiatives that Nicaraguan authorities will develop to reduce traffic congestion in and around Managua.

PICTURED: Rendering of the project to upgrade Managua's Juan Pablo II avenue. CREDIT: Nicaragua's national assembly.