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IDB approves US$125mn for Asuncion infrastructure (Paraguay)
2010-10-01
IDB has approved a US$125mn loan for infrastructure development in Paraguayan capital Asuncion, the public works and communications ministry (MOPC) reported on its website.

 

Part of the loan will be used to finance modernization of the public transportation in the city. The project aims to eventually provide integrated public transportation from neighboring San Lorenzo city to the capital.

 

OPEC's Fund for International Development (OFID) will also provide funding for the initiative, which has an estimated cost of US$160mn.

 

The IDB loan will also finance construction and improvement of green spaces in the city and urban infrastructure development in the San Jeronimo neighborhood, the report said.

 

The loan will be split into three segments. The first two US$62.4mn and US$47mn tranches will have an interest rate just over Libor, maturing in 30 and 25 years, respectively. The remaining US$15.6mn, from the bank's special operation fund, will have a 0.25% interest rate and 40-year grace period.

   

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