Washington, D.C., June 30, 2025 - The World Bank Group's Board of Executive Directors approved a new operation to improve road infrastructure in Guatemala's Highlands, the Verapaces, and the Dry Corridor. The project includes the rehabilitation and upgrading of 640 kilometers of roads and highways in rural areas, benefiting nearly 5.1 million people. These investments aim to improve access to markets, health and education services, and create greater productive and employment opportunities for communities characterized by high poverty levels.
Improving road infrastructure is essential to drive Guatemala's economic development and strengthen its regional competitiveness. While the country has made progress in expanding its transport network, challenges remain - only 40% of roads are paved - limiting access to markets and services and hindering domestic and international trade growth. The project also includes the development of a long-term maintenance program to ensure the sustainability of rehabilitated and newly built roads.
With a US$400 million investment, the Rural Infrastructure and Mobility for Well-Being Program will prioritize the poorest rural populations, including women and persons with disabilities. To achieve its objectives, the project focuses on rehabilitating and upgrading rural roads, departmental and national highways in areas exposed to climate risks; enhancing the capacity to respond to climate-related emergencies; and strengthening institutional capacity through training and capacity-building for the Directorate General of Roads.
"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, particularly in territories with the greatest development gaps. In addition, it aligns with the Government's General Policy 2024-2028, which also promotes a more inclusive and climate-resilient road network, with emphasis on rural roads and historically excluded Indigenous and rural communities," said Jonathan Menkos, Minister of Public Finance.
"This project is a decisive step toward more climate-resilient infrastructure in Guatemala. The roads to be built are designed to withstand increasingly frequent and severe extreme weather events, which is essential to protect vulnerable communities and ensure the long-term sustainability of the road network," said Pierre Graftieaux, World Bank Country Manager for Guatemala. Graftieaux also emphasized that the project includes specific initiatives to promote women's participation in the transport sector through certified training in road construction and maintenance.
In a country where agriculture accounts for 10.2% of GDP and employs more than a third of the population, road connectivity is key to linking rural communities with markets. However, many existing roads are vulnerable to extreme weather events, limiting economic development and access to services. In regions such as the Highlands, known for their cultural and indigenous diversity, improving road infrastructure also fosters territorial integration and facilitates access to health, education, and productive opportunities.
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