World Bank approves $400M road improvement project in rural Guatemala

World Bank approves $400M road improvement project in rural Guatemala
Banking & Financial Services
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Ajay Banga, 14th president of the World Bank | World Bank website

The World Bank Group has approved a significant project aimed at enhancing road infrastructure in Guatemala. The initiative will focus on the Highlands, Verapaces, and the Dry Corridor, with plans to rehabilitate and upgrade 640 kilometers of roads and highways in rural areas. This development is expected to benefit approximately 5.1 million people by improving access to markets, health services, and education, while also creating more employment opportunities.

Currently, only 40% of roads in Guatemala are paved, posing challenges for domestic and international trade growth. To address this issue, the project will include a long-term maintenance program to ensure the sustainability of both rehabilitated and newly constructed roads.

With an investment of $400 million, the Rural Infrastructure and Mobility for Well-Being Program aims to prioritize assistance for the poorest rural populations, including women and persons with disabilities. The program will focus on upgrading rural roads as well as departmental and national highways in areas prone to climate risks. It will also enhance emergency response capabilities related to climate events and strengthen institutional capacity through training provided by the Directorate General of Roads.

Jonathan Menkos, Minister of Public Finance, stated: “Investing in road infrastructure is a strategic bet for Guatemala’s development. This project will strengthen connections between regions, facilitate access to services and opportunities, and help boost the local economy." He noted that it aligns with government policies promoting an inclusive and climate-resilient road network.

Pierre Graftieaux, World Bank Country Manager for Guatemala, added: “This project is a decisive step toward more climate-resilient infrastructure in Guatemala." He highlighted that new roads would be designed to withstand extreme weather events while also promoting women's participation in the transport sector through certified training programs.

Given that agriculture represents 10.2% of Guatemala's GDP and employs over a third of its population, improved road connectivity is crucial for linking rural communities with markets. In culturally diverse regions like the Highlands, enhanced infrastructure can promote territorial integration and better access to essential services.

For further details about this project or other initiatives by the World Bank in Honduras or elsewhere, additional resources are available online.