IDB Invest, a member of the IDB Group, provided a $30 million financing for the improvement, maintenance, and operation of a 356-kilometer section of the Panamericana Norte highway in Peru (Red Vial 4). This road is one of the main highways in the country and links Lima with various urban centers, production hubs and ports along the northern Peruvian coast. The project is being developed by Autopista del Norte S.A.C., the concessionaire of Red Vial 4.
The deal includes improvements to the existing road and the construction of 70 new kilometers, including the beltway around the city of Chimbote. This detour, which will be a 35-kilometer dual carriageway, will redirect traffic from the densely populated urban area to the periphery, contributing to order and road safety for pedestrians and vehicles in the town. The jobs are expected to reduce travel time and create greater safety and comfort for users.
With this project, IDB Invest boosts its participation in the reactivation of the Peruvian economy, especially important in the context of the Covid-19 crisis. The project will strengthen the connectivity and integration of the departments of La Libertad, Ancash and Lima with other regions of Peru. The improvement in connectivity will benefit agricultural, industrial and tourist activities, both locally and regionally, and will boost productivity. In addition, the improvement of the transport network will strengthen access to markets and will reduce greenhouse gas emissions by speeding up transit and travel times.
The IDB Invest loan is part of a $350 million financing, structured by Credicorp Capital and Sumitomo Mitsui Banking Corporation. In addition to IDB Invest, it includes the participation of seven local and international entities: Banco de Crédito del Perú, Sumitomo Mitsui Banking Corporation, COFIDE, Banco Santander, Itaú Corpbanca, Crédit Agricole Corporate and Investment Bank and ING Bank NV.
The operation potentially contributes to five of the United Nations Sustainable Development Goals: Health and Well-Being (SDG 3), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Sustainable Cities and Communities (OSD 11) ) and Alliance to achieve the goals (SDG 17).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $12.1 billion in asset management and 333 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Sociedad Concesionaria Autopista del Norte SAC
Headquartered in Lima, Autopista del Norte SAC is the Peruvian subsidiary of Aleatica, a transport infrastructure operator group belonging to the infrastructure fund managed by IFM Investors. Autopista del Norte SAC is the concessionaire in charge of the construction, maintenance and operation of the Road Network N ° 4: Pativilca-Trujillo, a work tendered by the Ministry of Transport and Communications as part of the Public Works Concession Plan. The concession contract was signed in February 2009 for an initial term of 25 years. Among the benefits associated with the development of Road Network No. 4 (Section Pativilca - Trujillo) are: better connectivity and increased transport (cargo and tourism), greater activity in the different local industries, generation of jobs, greater security road, decrease in traffic accidents, decrease in travel times, considerable improvement in the quality of user services, and improvement in access to historical and cultural heritage