Washington, D.C., June 9, 2023 - The World Bank Board of Directors approved a US$150 million loan for the Resilient Reconstruction Emergency project that will be implemented by the Ministry of Transport and Public Works (MTOP). This financing supports government efforts to recover connectivity and improve infrastructure resilience and road safety in areas affected by natural hazards.
The project responds to the impact of the March 2023 earthquake and the heavy rains of the 2022-2023 winter season while supporting strategic initiatives to improve resilience. The operation's flexible design enables the use of resources to respond to future hazards. The operation will also help strengthen MTOP response capacity by financing machinery and equipment and building management and response capacities. All interventions will include activities to improve road safety and contribute to closing the gender gap in the sector.
"After 30 years, the World Bank has again granted Ecuador a road infrastructure loan. Today its Board of Directors approved US$ 150 million to respond to infrastructure and transportation emergencies," said Cesar Rohón, Minister of Transport and Public Works.
Ecuador is among the 10 countries in the region at highest risk of natural hazards and among the top 20 in the WorldRiskIndex 2022. This is due to its exposure to geological and hydrometeorological hazards such as earthquakes, volcanic eruptions, floods and droughts. Additionally, most of the population lives in urban areas, and 96% reside in coastal and mountainous areas, further increasing the country's vulnerability to phenomena such as El Niño, which can trigger flooding and landslides.
"Road infrastructure is especially vulnerable to climate risks. Connectivity losses affect inhabitants and economic activities. Through this project, the World Bank will collaborate with the government to respond to the serious impacts that this winter is producing in Ecuador, as well as effects of other potential hazards," said Pilar Maisterra, interim director of the World Bank for Bolivia, Chile, Ecuador and Peru.
The approved financing is a fixed-rate loan with a maturity period of 20 years, including an eight-year grace period.
Learn more about the work of the World Bank in Latin America and the Caribbean: www.worldbank.org/lac
